Why hotel revenue managers must become control freaks
Join EyeforTravel for an upcoming webinar on how hotels are using analytics to optimize revenue, refine pricing and elevate CX
In the hotel industry, the pressure is enough to send even the most laid-back lobby boy scuttling for cover in an empty suite! Margins are tighter than ever and customers are becoming more demanding by the minute.
To understand how hotels are managing this complex and fast-changing distribution environment, EyeforTravel is running a webinar on August 22 from 10 am - 11am BST. Joining the discussion to delve into the latest trends in analytics, pricing and revenue management are Barceló Hotels & Resorts, Interlude Hotels and Resorts, Thomas Cook Hotels & Resorts and Facebook.
At Interlude Hotels, says CEO Laura Lo Mascolo, data analytics is an every day focus. “As a guest-oriented chain, it is crucial that we understand the interests and behaviour of our consumers to develop a precise strategy that avoids wasted resources.” This means studying details such us booking windows, level of interest, length of stay, which rooms and services booked, and where money is spent.
Tricky balancing act
Getting the right mix of distribution partners is a balancing act. “The best performing mix is the one that is in line with my brand identity, the one that is in line with my cash flow needs, the one that is the right for my hotel in that location and not for another,” Lo Mascolo explains.
Daniela Hupfeld, Commercial Director, Thomas Cook Hotels & Resorts, agrees that it is complicated and the distribution pipeline today is not easily understood or controlled. “We need to ensure that procedures are in place to constantly check where inventory and rates are appearing,” stresses Revenue Management Director Cynthia Reitano who will be joining the webinar on behalf of Thomas Cook.
We need to ensure that procedures are in place to constantly check where inventory and rates are appearing
Hupfeld’s advice is to be very strict when handing out rates, and limit the number of contracts. “Increasingly revenue managers have to become control freaks by knowing their markets and clients really well and managing internal expectations in order to avoid short sighted decisions, she says.
Social strategy, serious skills
Also joining the webinar is Ali Busacca, Travel Product Marketing at Facebook and Instagram where travel remains the hottest, most talked about topic. Busacca will share some benefits from clients that are using its Travel Ads solutions – Air France being one. According to Busacca, the airline saw an “incredible 62% lower cost per search compared to previous prospecting campaigns!”
Other issues that revenue managers must keep on top of include the EU’s new and stronger security EU payment standards – PSD2, the Revised Payments Service Directive.
Make no mistake, says Hupfeld, “it’s hard work and you need to be clever, organised and pragmatic”.
Reitano adds: “You need to have your forecasts under control, make decisions based on figures and not be afraid to say no!”
Helen Raff, Chief Product Officer, EyeforTravel says the webinar is a MUST for anybody who works across RM, pricing or analytics. You’ll learn how to:
- Send the right message, right customer, right time: in other words target travellers based on their intent and where they are in the path to purchase
- Synergise data across your call centres, PMS and CRM system, to get a single view of the customer, aiding personalisation, customer service and loyalty
- Wake up to total revenue management and cover everything, from breakfast to parking spaces, on a hyper-individualised level
- Debate the potential of dynamic pricing to optimise revenue
Join us at EyeforTravel's Revenue and Optimisation and Marketing Summit (Nov 26-27) to hear more about revenue boosting business from top travel brands