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2011 www.erevmax.com 1 Electronic Revenue Maximization White Paper Healthy & Fit Revenue Management Strategies Ensure your property optimises sales Build & maintain revenue strategies Make positive decisions Become flexible and agile Increase stamina to outperform competitors

Healthy & Fit Revenue Management Strategies

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Page 1: Healthy & Fit Revenue Management Strategies

2011 www.erevmax.com 1

Electronic Revenue Maximization

White Paper

Healthy & Fit Revenue Management Strategies

Ensure your property optimises sales

���� Build & maintain revenue strategies

���� Make positive decisions

���� Become flexible and agile

���� Increase stamina to outperform competitors

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Electronic Revenue Maximization

Introduction – Warm Up Health and fitness provide you with a good balance in life and there is no exception to the rule for Revenue Management. Personal values of health and fitness are relevant to any professional performance. Sometimes nasty habits can take us off track without us realising the side-effects these can have on our overall health. Most of us need to be inspired to act healthy, sometimes we need guidance and other times we need support to encourage us along. There are many opportunities in the online travel market and how you make the most of these will depend on your fitness levels. Most of us will admit we’re not necessarily in our prime all the time. That little extra practice and a better diet will dramatically improve our performance. Plus we need to take into account the environmental changes to better adapt ourselves. Similarly, as hoteliers we have to be aware of the changing trends in consumer booking and new tourism markets, which means we need to be alert and ready to act with each new development. Through this white paper we want to help you balance your revenue by identifying ways to optimise your sales channels and ensure revenue remains healthy. Just like a Personal Trainer we will provide insight to help you out-perform competitors, keep occupancy high, build a strong team and remain flexible to market conditions so you can remain independent. Your health and fitness needs your direct involvement. But we can certainly inspire and support your journey to full fitness and competitive performances.

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Nutrition & Diet: A good balanced approach

Nutrient – noun 1. any substance […] serves to sustain it in its

existence, promoting growth, replacing loss, and providing energy.

Business success is the result of knowledge, intelligence and awareness within or that is recorded of a property. Opportunities to make more revenue are the results of feeding the hotel with the right data to help you respond appropriately to the markets.

Nourish your team and your business with the right nutrients. Feed your hotel with the right data Business intelligence data helps you position your hotel among your competitors to offer the best value for guests and improve the revenue per available room (RevPAR). Benchmark room rates of multiple competitors, for multiple room types across numerous booking channels. Get a full overview of current market conditions from data extracted from booking engines, OTAs and GDS.

���� Gauge the best price points ���� Know when to change rates

Race ahead of your competition with optimum performance by offering the greatest value to the customer. Forecast & automate strategy Feed data direct into your revenue strategy. You can keep rates dynamic even when you’re not watching. Forecast data will deliver you stealth and stamina to remain ahead of competition by working with multiple rate strategy options that will change your rates and availability across channels automatically.

���� Implement automatic rate strategies to keep your property performing even when you’re not looking

���� Know you can out run your competitors Identify how your competitors react by looking into the future. Customer review data Know exactly what your customers and others are saying about you, your hotel and their experience. Good and bad reviews on consumer review websites can spread fast. By receiving the latest guest opinion you can respond effectively and show you are a ‘people property’.

���� Receive all reviews from the most trusted websites ���� Know what your guests are thinking so you can respond to their needs ���� See what guests are saying about your competitors

A game is not just about two-halves but how you prepare and how you behave at the end of the game. Be aware that guests are watching before they arrive and after they leave. PRODUCT: RTSuite - Shopper / RTReview / RTStrategyEngine

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Electronic Revenue Maximization

Raise your fitness levels: Gain agility and flexibility

Agility - noun

1. the ability to think and draw conclusions quickly; intellectual acuity.

Fitness is the result of ongoing practice and attention to detail to create a healthier future. The more proactive you and your team are the more you reduce risk, boost productivity, limit and manage costs, and know what lies ahead.

Agility and flexibility will make revenue management more efficient. Competition - strength & strategy Every athlete plays to their competitors’ weaknesses – make sure you have the data on yours. Revenue management can be like a game of chess. You need to foresee your contender’s next move before you make a move. Take advantage of the right intelligent data. Rate & distribution manoeuvres As a captain of a football team you know who to play, where to place them and when to put them on the pitch – you know their performance. The same should be applied to all your sales channels. Assess the data that shows you which channels are performing. Run a fitness test on all your players (third party websites) and start cutting out the non-performers. Remember – your goal is bookings! Set targets, measure success, analyze development Sports players continually assess their overall performance. Keep raising your expectations and revising your training methods. Setting new targets will keep your fitness levels improve to become a more sophisticated sportsman. Market intelligence, booking behaviour and future trend data gives you information that you need to become a top revenue management athlete.

PRODUCT: Allocation management, Allocation Alert, GDS Connectivity, Real time data, room close-out, Weekday weekend set-up, Minimum LOS, Inventory Allocation, Tax & commission, in-built calculator, currency control, set rules, extranet rules, Hot Dates, Allocation Pool Control

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Revenue management: A team game

Team - Noun 1. a group of people organized to work together

Revenue management need not be a lonely sport. Make it a team game to build your potential. Work with those at your property and get help from those who speak your language.

A fitness instructor/coach can help you focus your efforts and make the most of what you have and encourage you to succeed.

Form a team Strong performers in the form of other keen RM athletes will make you a force to be reckoned with. Invest in training and ensure they practice every day. Once they have managed the basic, who knows what moves they pull to tackle the challenges of online sales. Get an instructor The right training and support (fitness instructor) will come from those who understand your business, your objectives and can help you make the most of what you have. Instructors should be available when you need them. A good coach will encourage you and inspire your team to continually do the best. Install a Channel Management gym Training equipment will show your commitment and dedication to achieving the optimum fitness levels for your property. Keep your strategy working with your hotel; invest in right fitness training machines that will improve your RM muscles. PRODUCTS: Dedicated Market Manager, multi-lingual training, 24x7 technical support, RM sessions through RTAcademy

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Vitamins & Supplements: Spur your strength & enhance your performance

Supplement –noun

1. something added to complete a thing, supply a deficiency, or reinforce or extend a whole.

Health fanatics have been boosting their fitness levels for centuries. Revenue management with the right additional supplements can spur your bookings to a new level. Boost sales opportunities by adding new marketing and sales techniques (including customer relationship management, market outreach and market segmentation). More hotels are taking advantage of niche markets, identifying a new type of guest and slicing visitors into more accurate consumer groups.

With new technologies you can do this faster and smarter.

Digital Media Management Bring traffic direct to your website through digital and social media marketing. This performance add-on helps boost revenue by avoiding commission charges posed by OTAs and third party booking channels. RM Boot camp Get in shape faster and quicker, Boot camp’s intensive programme will get your fitness skills up. Specialist revenue management coaches and classes will give you the insider knowledge to make you a winner in the field. Distance running Work yourself harder and further to push yourself to the limit. Add Unlimited Channel distribution to your revenue strategy, or diversify your product offerings with different Room types. A Decathlon athlete didn’t specialise in 10 sports but pushed themselves to do well over time. Look beyond what you do to keep earning revenue.

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Conclusion: Recovery & relaxation

re�cov�er�y –noun, 1. an act of recovering.

2. the regaining of or possibility of regaining something lost or taken away. 3. restoration or return to health from sickness.

4. restoration or return to any former and better state or condition. No sportsman can win a competition without preparation, delivery, recovery and relaxation. With each step you can ensure you build your health levels, stamina, performance and control. By establishing the best techniques and continually assessing your performance you can achieve successful revenue management.

Recovery and relaxation is not about giving in, it’s about improving your fitness.

���� Feed the right data into your hotel so you know how you and your competitors are performing [PREPARATION]

���� Work out your revenue management every day to make sure it’s in top condition

[DELIVERY] ���� Get trained and supported by the right people to meet those targets [STAMINA] ���� Boost your performance with the right tools [PERFORMANCE] ���� Assess the success of your training [CONTROL] Discover the technologies that will keep your revenue strategy fit and healthy to keep occupancy levels strong and RevPar high with RateTiger.

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RateTiger HEALTH & FITNESS TEST Below are 15 questions to assess your online revenue management situation. Answer all questions, and then refer to the score board below to find out how well you perform.

Questions YES NO

1. Do you sell Online?

2. Do you know on how many channels you are currently selling?

3. Do you know where you sell online i.e. names of OTAs / channels?

4. Do you know on which online channels do your competitors sell

on?

5. Do you have access to real time competitors’ room rates on these

channels?

6. Do you benchmark your rates against the competitor rate data and

market scenario?

7. Do you monitor and update your room rates and inventory on OTAs

on a day-to-day basis?

8. How much time do you take to update revised data on these

channels?

a. Less than 45 minutes

b. More than

45 minutes

9. Is your distribution process across various online channels

synchronized?

10. Do you get auto alerts for sold-Out, Low Allocation and Booking

Confirmation from your online channels?

11. Do you use the 5 pricing strategies to define your prices?

12. Do you have access to future room rate data to determine optimal

rates?

13. Are you monitoring what guests are mentioning about your hotel

on various social sites?

14. Do you respond to queries, comments and criticism on these sites?

15. Do you have a defined Online Marketing Strategy to drive your

online sales?

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SCORE BOARD Please calculate your score by aggregating the points based on the criteria below –

For every YES = Add 1 point For every NO = Deduct 1 point

For Q8, if you answered ‘a’, add 1 point; for ‘b’, deduct 1 point

Score Reflection ���� 1 point or less: Time to Wake Up!! ���� 2 – 5 points: You need Help. Start working out with an RM Instructor immediately! ���� 6 - 10 points: You are aware. Get some further guidance and be pro-active with

online distribution to reach the next level. ���� 11 – 15 points: You understand the value of online sales. With some more

inspiration and support from experts you will soon be out-performing competition and making it a habit ☺

Get in touch with a RateTiger representative today to find out what they can do for you. Send your queries to [email protected] and we will revert with solutions.

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About the Author Ryan Haynes is the Marketing Head at eRevMax and is responsible for driving all PR and Marketing activities of RateTiger and eRevMax brands globally. Ryan is based out of London and can be reached at [email protected]

About eRevMax International eRevMax International is a pioneer in the field of online benchmarking and channel management for the hospitality industry. The company integrates directly with over 600 travel sites, CRS, PMS and RMS companies to provide hoteliers with ultimate revenue and distribution management tools. RateTiger, by eRevMax, has become the industry’s benchmark for rate shopping; revenue management and online channel management. Hoteliers save time and money running competitor price benchmarking reports and simplifies complex rate and availability updates across multiple online channels. RateTiger also offers premium reporting, distribution automation tools and OTA/XML connectivity. eRevMax, founded in 2001,is now operating in over 65 countries and 750 cities. The company is headquartered in Dublin, Ireland, with regional offices in Orlando, U.S., London, UK, a technical development centre in India as well as six sales offices in mainland Europe. eRevMax currently employs more than 170 people across the globe, rapidly expanding across the European, American and Asian markets. For more information please visit http://www.ratetiger.com USA Sales: eRevMax Inc. 37 North Orange Avenue, Suite 500 Orlando, Florida 32801, USA Tel: +1 (321) 251 6559 Fax: +1 (321) 206 8630 Email: [email protected]

UK Sales: eRevMax Ltd. Monmouth House, 3rd Floor, 40 Artillery Lane, London E1 7LS, United Kingdom Tel: +44 (0) 20 7422 7528 Fax: +44 (0) 20 7657 4245 Email: [email protected]