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Revenue Management & Marketing How combining your efforts can unlock hidden revenue potential

Revenue Management & Marketing

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Page 1: Revenue Management & Marketing

Revenue Management & MarketingHow combining your efforts can unlock hidden revenue potential

Page 2: Revenue Management & Marketing

Reputation Drives Revenue

Page 3: Revenue Management & Marketing

Revinate Reputation™

In a world where your content and prices are similar to your comp set, reputation can be the deciding factor in a booking decision

Page 4: Revenue Management & Marketing

Top 3 Factors for Booking Decisions

üpriceülocation

üonline reviews

Source: TripBarometer Report

93%of travelers worldwide say online reviews have an impact on their booking decisions.51%

of travelers have written an online review about the accommodation upon return from a trip.

……………………………….……………………………….

@dihelander

Page 5: Revenue Management & Marketing

Cornell University School of

Hotel Administration

Reputation Drives Revenue

Reviews impactHotels that increase their review rating by 1 point

can increase daily rate by

+11.2%

Page 6: Revenue Management & Marketing

Ratings Impact Calculator Example

Using this data, it’s easy to see how a relatively small investment in reputation management yields an extremely high ROI:

Bookings/Conversion

Average Review Rating

Reputation Improvement

Improved Rating

Revenue Increase

3.5

0.5

4.0

+5.6% in ADR

Page 7: Revenue Management & Marketing

Proactive Online Reputation Drives Results

Hotels access feedback

Hotels identify ways to improve

Make operational improvements

Guests write more positive reviews

New potential guests see reviews

Page 8: Revenue Management & Marketing

Smarter Investment Decisions

“Just after a re-branding, our occupancy comp index was at 70-80%. Due to our daily analysis using Revinate, our occupancy index is exceeding 100%. As of now, we are able to yield more aggressively, thus remarkably impacting our RevPAR.” David Eisenbraun, GM Pier 2620 Hotel, San Francisco

Pier 2620 Hotel found via Revinate’s

sentiment analysis that they were receiving frequent

negative comments about beds. After replacing the beds, they receive largely

positive feedback.

Page 9: Revenue Management & Marketing

Smarter Investment Decisions

Which capital investments will best help you to maintain or grow RevPAR?

Should we update the bathrooms or

install new TVs?

Sentiment analysis can provide critical guidance

Page 10: Revenue Management & Marketing

The Hidden Power of GSS

Page 11: Revenue Management & Marketing

Revinate Surveys™

The Problem with Traditional GSS

How are booking decisions made today?

Page 12: Revenue Management & Marketing

Revinate Surveys™

Drive your review volume and improve reputation.

Review Frequency409% increase

in volume

409%

Review Origin3 out of 4 come from

Revinate platform

2

6

5

4

3

1

Popularity Index15% average improvement

Page 13: Revenue Management & Marketing

Moved from

#76 to #6 on the

TripAdvisor

Popularity Index

• Improved feedback volume

by 710%• Moved from #134 to #51 on

the TripAdvisor Popularity

Index

• Increase average review

score by 21% from 3.7 to 4.5

Moved from

#56 to #22 on the

TripAdvisor

Popularity Index

Revinate Surveys™

Hotel Brussels Las SuitesMexico City

Morning Star Express HotelPretoria, South Africa

Page 14: Revenue Management & Marketing

Drive Direct Bookings

Page 15: Revenue Management & Marketing

OTAs are the top sources used for leisure hotel shopping

ExpediaGoogleHotels.com

Travelocity

Priceline

Hotwire

Orbitz

Kayak

Brand SiteTripAdvisor

Booking.com

41%35%35%

32%

31%

23%

22%

21%

18%

9%

21%

Cost to a hotel for a booking

OTA booking cost ~10Xmore

Direct bookingcost

Direct Bookings

Hotels shouldn’t pay OTAs a 15-30% margin to acquire the same guest again and again…

US Leisure Hotel Searches

Page 16: Revenue Management & Marketing

Direct Bookings/Conversion

Push your curated reviews directly on your websites

Reviews give customers confidence when booking, making them far less likely to leave to an OTA*

* 39% less likely, according to L2 Digital IQ report

Grow the profitability of your revenue by improving your channel mix, driving a higher percentage of direct bookings

Destination Hotels & Resorts: Showing reviews makes website visitors 26% more likely to visit the booking engine

Page 17: Revenue Management & Marketing

When rich guest data is combined with an advanced marketing automation platform, hotels and hotel groups can create valuable personal relationships and loyal guests.

Page 18: Revenue Management & Marketing

Email Marketing & Revenue management

1. Address forecast periods of low demand with highly targeted and segmented email marketing campaigns

2. Mitigate last minute cancellations with quickly created (and targeted) campaigns3. Gain insights into all segments to help inform optimal mix of business (e.g., do

your direct bookers spend more than OTA guests?)4. Create upsell campaigns to drive additional revenue5. Drive OTA winbacks to reduce commissions and increase net revenue

Page 19: Revenue Management & Marketing

1. # of Stays2. Room Rate3. Families4. Room Types5. Channels6. Rate Codes7. Stay Date Ranges8. Check-in/check-out

dates

9. Geography (Country, State, City, Zip Code)

10. Total Spend 11. Language12. Food and Beverage Spend13. Birthdays

Filters Available in Most PMS’s

Page 20: Revenue Management & Marketing

Campaign Examples

Page 21: Revenue Management & Marketing

Filter - Check-Out Date

Page 22: Revenue Management & Marketing

Building Blocks in Practice

1. Create automated, recurring email2. Target guests 30 days after check-out3. Exclude detractors (identified in Revinate Surveys)4. Exclude future reservations

=

“Past Guest Bounce Back”example campaign

Page 23: Revenue Management & Marketing

OTA Winback/Rate Code

1. Automated, recurring email2. Targets OTA guests 30 days after check-out3. Excludes future reservations**Emails must be collected at the front desk**

Page 24: Revenue Management & Marketing

We Miss You/Check-out

1. Automated, recurring email2. Targets guests 550 days after check-out3. Excludes detractors (identified in Revinate Surveys)4. Excludes future reservations

Page 25: Revenue Management & Marketing
Page 26: Revenue Management & Marketing
Page 27: Revenue Management & Marketing

RevinateEngage™

Revinate Marketing™

Revinate Surveys™

RevinateReputation™

RevinateRich Guest Profiles™

Rich data from

social and reviews

Survey feedback,

PMS data

Campaigns, guest preferences,

demonstrable ROI

In-stay marketing & communications,

behavioral insights

An Integrated Suite of 4 Building Blocks

Page 28: Revenue Management & Marketing

RevinateEngage™

Revinate Marketing™

Revinate Surveys™

RevinateReputation™

RevinateRich Guest Profiles™

Rich data from

social and reviews

Survey feedback,

PMS data

Campaigns, guest preferences,

demonstrable ROI

In-stay marketing & communications,

behavioral insights

Revinate Drives Revenue

1 point increase in rating

can lead to 11.2% in ADR.

15% improvement in popularity

index

$10,509 Avg Revenue per campaign. OTA shift

strategy.

Drives upgrades & ancillary revenue before and

during stay

Page 29: Revenue Management & Marketing

Thank You