FEATURE ARTICLE success of augmented and last-minute booking channels including HotelTonight which is exclusively a mobile app , and One Night Standard , which focuses on an affluent subset of last-minute travellers . By monitoring how these online booking channels are adapting understanding why – hotels can be more strategic about how they use these channels to drive bookings and track parity . Keeping an eye on the market also ensures that you are able to take advantage of every opportunity to increase visibility of your hotel , even when a new channel appears .
Get to know your guests better
2 You will need to know your customers beyond the basics if you want to take the next steps in increasing revenue and smarter distribution strategy . Take advantage of one biggest internal assets by activating and utilising your customer data .
Drill-down into your internal data and define your ideal guests – which types of guests are you trying to target ? Understand :
• What sort of guests are you attracting- Where are your guests coming from ?
• Where do your guests book from- Which channels are most effective ?
• How late do your guests book- What is their booking window ?
• What is their room preference- What room types are most popular ?
• Guest booking habits- How long do they stay ? Do certain guests have longer LOS ?
• Are your guests business or leisure focused- Are they weekday or weekend guests ? Your existing guest data can help shape your target profit strategy . For example , if Chinese leisure travellers are very profitable and they are a part of your strategy , then target Ctrip . If you want travellers from India , focus on driving Make My Trip , or if you want leisure travellers who tend to stay on the weekend , use Booking . com .
To really start playing the channel optimisation game , you need to be calculated and strategic in your approach to attracting guests , instead of casting your net wide and hoping for the best .
Evolve your pricing strategy
3In this current day in age , there really needs to be a focus on pricing strategy in order drive revenue to increase your hotel ’ s revenue , you need to effectively manage your pricing considering a number of different factors . Make sure that you :
Compare apples with apples – Rates are not just rates , ensure you get the full picture when looking at rates – you need to make sure you compare the right room types , length of stays , meal plans , discount rates in order to have a full understanding on how your rates compare versus the competition .
Ensure you maximise your direct booking strategy – Simple differentiating factors including drinks , activities , shuttles to add value beyond the lowest rate available should be considered to ensure you always provide the best value offering direct .
Manage pricing in line with holidays and events – Forward planning effectively for events in your area helps you take advantage of key revenue opportunities . Knowledge is key , and staying abreast of all leisure and corporate events which are happening in your area can prove profitable if activated properly . Exclusive packages which include a shuttle to and from event venues can be lucrative . During quieter periods promotions can be considered to drive occupancy .
Rate parity strategy
4Rate parity ( and disparity ) is a continuing tug of war for hoteliers . Make sure that you are doing the best you can to drive direct bookings and maintain a balance :
• Activate your rates to your loyal customers . These rates may not be advertised but you can highlight exclusive offerings to your existing database , membership program or social media followers .
• Package rooms . Offer exclusive packages or promotions to differentiate beyond just price .
• Use a rate shopping tool to actively monitor your online booking channels , so that you can manage pricing in real-time . With the marketplace for hoteliers constantly changing , with new players entering to disrupt the norm , OTAs strategically building their portfolios and travellers are changing the way they look to book , it ’ s becoming a full-time job to interpret the what ’ s happening in the market and creating actionable insights from this . The key is to find efficient ways to interpret your growing data set and leveraging technologies certainly can help with this .
As long as there is a continued focus on understanding the market – and , most importantly , your guests – there are opportunities to think ahead of the competition and make a difference to your bottom line .
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