Consumer behaviour is constantly evolving. It is essential that today's hotelier understands what their
consumer is doing, and ensures that their revenue management strategy is aligned so that every
opportunity is captured whilst engaging with the consumer at every touch point. At the recent HSMAI Revenue Management conference, hoteliers shared that their guests are not loyal
in terms of how they book, and are erratic in terms of the device that they use to book. The way in
which the consumer researches, and the amount of choice that they have to aid this process is also
presenting hoteliers with many challenges in controlling their business in a consistent and profitable
manner; customer segmentation is therefore a challenge. This is where as hoteliers we can become
SMARTER at selling rooms. We all know that the consumer journey starts with research before booking
- whether on a map search, review site, brand.com or social media. This is where we need to
understand what they are using; PC, tablet, mobile. And then understand
when they are doing this… before, during, after work – regardless, the way in which
the consumer researches is dependent on them, their ME time – it does not however mean that how
they start their journey is necessarily where they will end up booking. What - As a hotelier, we need to ensure that our content is consistent, and
supported on all devices – PC, mobile and tablet. If we make it difficult, the consumer will go
somewhere that makes it easy, this could be a competitor, or another channel. Is your website and
booking engine agnostic – meaning, does it matter what device is being used to view the content? When - Ensure you have your best value offers out there as soon as possible;
capture the consumer when they first look. If you are considering releasing a promotion late in the
day, it may be too late, that consumer may have already gone somewhere else. Use consumer habits
to your advantage – use social media to stimulate the interest early in the day, i.e. "tune in at 5pm
today for an offer of a lifetime," include the links to get the consumer straight to that promotion, make
it easy to "share," so the consumer can help you reach a wider audience. Consumers are not guests, as they can still change their mind; in fact 33% will change the hotel
booked based on social media research. Ensure the consumer understands the value they are getting
with your hotel. Monitor cancellations and have a process in place to contact the guest, if possible, to
understand the reason for the cancellation. If it was price related, then plan a retention process to
negotiate the booking back when appropriate to do so (if demand is low). Look at value – what could
you include that's important to the consumer – late checkout, a room upgrade – these do not cost the
hotel anything verses breakfast, afternoon tea or spa treatments. Or think from a total revenue
management perspective – how about a voucher for a percentage off dining in house? Be creative with
your negotiation. Now, how do we link this to the concept of revenue management… selling the right room, at the right
rate, to the right person, at the right time through the right channel? This links back to the consumer
journey. A few things to consider:
It is
important to know, regardless of which channel they book… who is your consumer, what are their
needs, what are their habits, what is their incremental spend? Do you have measures in place to track
and report on this effectively?
The concepts of RM do not change, right rate at the right time based on product, service, customer reviews, demand, competition, and all of the other factors. The right room, the right person and right channel are based on marketing the hotel correctly, and being visible in the right places. Hoteliers then need to understand the profit generated from each consumer type. Evaluating this will assist in measuring which channels the hotel should be present on, the success of that channel and if the right price point was selected. These together will enable the hotelier to continue to acquire and engage with the consumer, convert into guests and retain them.
Paul King works on Sabre Hospitality's Revenue Management Consulting team as Regional Director of Revenue Management in EMEA.
Aven Hospitality, formerly Sabre Hospitality Solutions, is an independent global technology and SaaS leader in the hospitality industry, powering how hotels sell, distribute, and deliver guest experiences. SynXis, the leading global hospitality commerce and distribution platform, coordinates hotel information across 600+ integrations to ensure accuracy, consistency, and competitiveness wherever travelers discover, compare, and book. Trusted by 35,000+ hotels across 175 countries, Aven Hospitality serves as the connective layer behind many of the world's most iconic brands, simplifying complexity behind the scenes so hoteliers can operate with confidence today and stay ready for what's next.
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