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Hotel Website Marketing Conference 2010
Presented by: Cheryl Hawksworth
IDeaS Global Team
Minneapolis, MN
Congratulations if you survived!
Its now about Recoveryrather than Survival *
2011 presents an Opportunity to Shine Opportunity to Shine
Run as fast uphill as you did downhill!
• *for some
Back in 2009/10…….
1. Think Strategic and Structured
2. Provide Guidance to Your Sales Team
3. Manage Your High Volume Accounts
4. Maintain Consistent Pricing4. Maintain Consistent Pricing
5. Research Any Competitor Movements Carefully
6. Forge Closer Relationships with Your Distribution Partners
7. Sell on Value – Not Price
Irish Market
Dublin, Ireland, reported the largest ADR decrease, falling 13.4% to EUR77.15, followed by Budapest, Hungary, with an 11.5% decrease to EUR64.57.
Occ up 3.2%, Revpar down 7.7% (to May 10)
NAMA – upto 100+ hotels could be managed.
Bank of Scotland pull out end of 2010 – how many hotels with Bank of Scotland pull out end of 2010 – how many hotels with loans affected?
The outlook for Ireland’s hotels continues to be pessimistic, though slightly less so than six months ago, and it will need to re-stabilise before it becomes an attractive investment option once again.
Source: STR Global
For 2011/2012
1. Where will You Be when Demand Comes Back!
2. Understand Your Pace
3. Price for the Long-Term
4. Optimise Base Business4. Optimise Base Business
5. Maintain Flexibility
6. Use Data to drive decisions
7. Get Connected
Where will You Be when Demand Comes Back!
Where will You Be when Demand Comes Back!
PKF: Double Digit RevPar increases not until 2012
Depressed Pricing levels
“Shell-shocked”
Now is the time to set your strategies!
• Knowledge/Understanding/Expertise
• Business/Scenario Planning
• Long-term vision & strategies
Understanding Your Pace
Forecast Rooms Pace
30% ahead of target
Co
rpo
rate
-M
on
day
Understanding Your Pace
9045 135
Days to ArrivalToday
Ro
om
s S
old
–C
orp
ora
te
Understand your pace in-depth
• By Day of Week
• By Segment
• Seasonality
• Market Circumstances
Pace drives strategies
• Rate changes
• Yield Restrictions
• Reduced value-adds
• Promotional Tactics
Price for the Long-Term
Find Your Pricing Spectrum
The goal is to understand the demand characteristics of products, and guest sensitivity
to pricing to define a rate spectrum that will capture the maximum revenue.
Is this the time to start thinking about price increases?
Well – it depends…
• Owners want it
• Sales think market is not yet ready
• General Managers don’t want to risk the first signs of better business
Whatever you think – think strategic
• Price/Value/Benefit relationship
• Based on sound forecasts
• A logical and long term strategy that everyone understands (but not
necessarily likes)
Use competitive benchmarking and rate shopping tools extensively
Evaluate your strategy frequently
Optimise Your Base Business
Build a Better Base
Don’t regret the decisions you make today
• Group & MICE business has a significant long term effect
Robust long-term Forecast
“Normalized” demand patterns as reference points
• 2006/07/08
• Keep potential future displacement in mind
Keep flexibility in your approach
• Only confirm T&Cs 10-12 months before event
• Over allotment room rates
• Cancellation/Wash Rates
Maintain Flexibility
This is not the time to get locked into long term contracts
Demand will be back in 2011 – or 2012 – or 2013? Or it is back already – or it is not – or is it?
How will you optimise these when(ever) the time comes:
• Corporate Contracts
• Group Contracts• Group Contracts
• Wholesale & Tour Series
• Distribution Agreements
T&CsValue AddsPricingPromotions
Intermediary PowerSupplier Power
Sellers Lose
Suppliers
Balanced Middle Ground
2001-20042008 – 2010
Pre 9/112004-2008
Balanced Middle GroundCreating Win Win Situations
Lose interest in Suppliers
Suppliers Lose Control of the Price
Point
Source: Jim Young, Vice President and Chief Marketing Officer, Frontier Airlines
Data to drive Decisions
Using the Right Tools
Use data to drive your decisions
• Fact based non emotion
• Changes ‘I think we should’ to ‘I need to’
• Use one version of the truth!
Even basic tools can show an ROI
• Rate Shopping Tools• Rate Shopping Tools
• Channel Management
• Sales Channel statistics (web, gds etc.)
The truth, the whole truth, nothing but the truth!
• What RM capabilities does your PMS, CRS, Web have?
• Can you honestly say you know what to ask for when evaluating
these tools?
• Get referrals from those who know the back end as well as the
front.
Get connected
IDeaS Major Integration Partners
Property Management Systems
IDeaS Major Integration Partners
Central Reservation and Distribution Systems
Rate Shopping and Rate Distribution Systems
Dare to Win!
