At Alojapro we believe the key to success in Revenue Management for hotels will lie in the way changes are adopted and how quickly they are made.
In a survey carried out by Cornell University among Revenue Managers from all over the world, it emerged that many want to go beyond the traditional focus on available rooms. The survey prompted some very interesting comments from industry leaders on developing talent and providing the right training to move away from the traditional view and start using metrics as the cornerstones of success.
1. A continued focus on direct sales:
This year the trend will continue to be a focus on clear, tangible reasons to book directly on the hotel's website.
Hotels should promote added value rather than offering discounts. With so many hotels backing the “book directly with us” message, offering added value or an extra will avoid having to lower room rates or offer unsustainable discounts.
The unique reason for guests to book on the hotel's website must be clearly presented, visible, easy to understand and of real, tangible value to the guest.
2. Predictive analytics
This year properties will be working with predictive analytics tools.
Predictive analytics is the future of Revenue Management. Although predictive analytics itself is nothing new, the volume of data, its reliability and its real-time nature certainly are.
Revenue Managers' decisions are evolving. They are now based on current data and activity rather than on historical trends.
Although Revenue Management is data-driven, there are still many small hotels that are not interested in investing in this type of technology or in adapting the way they work.
Barriers to investment (cost and the time needed to train staff), a lack of product knowledge and underestimating the benefits it can bring to the business are some of the reasons why some properties are still not investing in Revenue Management tools.
3. Mobile
Mobile is now the central traffic platform. Hoteliers need to focus on how their products are displayed on the user's device and what the booking experience is like.
We have all seen the growth in mobile transactions in recent years. From a revenue point of view, this means being very aware of how the product is displayed on a device, always bearing in mind that a user does not interact with your website in the same way on a mobile device as on a computer.
For hotels there are two parts of the booking process that can cause problems on mobile, and these are aspects that need to be considered:
- Forms: Some fields cause problems on mobile. What's more, if there is too much information to fill in, the process becomes very cumbersome.
- Payment: Users need to feel secure with the process.
4. Online reputation and branding
The link between the positive quality of reviews, rankings and the guest's decision to stay at the property is undeniable. Reviews are fundamental to the booking decision process. You can offer the best price in town, but if you have negative reviews, the guest will choose somewhere else.
Studies have shown that potential guests will prioritise reviews even over price.
5. Chat apps
Chat apps are increasingly popular and are an easy way to start a conversation with your guest, as guests want to communicate with hotels in the same way they communicate with other people.
Chains such as Starwood have adopted this technology and currently run a WhatsApp programme that has expanded to 175 properties, with the standard of receiving a reply within 60 seconds, 24 hours a day, 7 days a week.
Chat apps are undoubtedly on the rise, but the challenge lies in seeing how the interaction can be monetised without turning into ‘spam’. These apps look set to become a powerful customer service tool that fosters loyalty, engagement and the overall guest experience. However, this type of solution does have some drawbacks or disadvantages:
- An increase in customer support resources
- Prioritising every support element, as channels such as Facebook require an immediate response
- It leads people to ask questions whose answers are already on the website
- It can degrade the guest experience if not managed properly
It all comes down to knowing how to implement it intelligently and how to measure its benefits.
Source: hotelspeak
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