Relationship between revenue management and social media management / reputation managment
PRICING STRATEGIES AND UNDERSTANDING THE VALUE CONSCIOUS SOCIAL CONSUMER When it comes to book hotel we tend to pay particular attention to reviews and rates. We would go for a hotel with great reviews, positive comments even if the price is high. Now let’s see this from the revenue manager’s point of view: They try to use social media data and channels as a tool when they set prices. Summary of the Kelly McGurie interview, executive director of Hospitality and Travel Global Practice.
I. 
How revenue managers make use of social media Social media data, and statistics of various channels must be taken into account when revenue managers decide about pricing, tactics. Social positioning and prices are two different factors that potential clients check before booking. Lower price does not always result in booking. Positive reviews are more valued than lower prices. Revenue managers have to understand the decision making process of potential clients who first eliminate the hotels with negative review, than check the different prices and the value of positive comments.
II.
What should hotels with negative review do ?
They should, by all means, fix those negative
comments instead of worrying about the prices because
negative
comments
won’t
generate
booking even if the price is low. Revenue managers have to work with social media managers or
reputation managers in order to be up to date with the hotel’s reputation . Knowing perfectly the hotel’s reputation will enable revenue managers to
set up prices, tactics.
III.
Revenue managers, let’s work!
Define the business problem
Define the available sources that can contribute to solve the identified problem that is to say check where people talk about the hotel (any kind of application, Booking.com, Facebook, Twitter,.. .)
Languages used for communication
Relationship of review sentiment – rate – channel
Key: Social influence: people actually listening, interacting with the hotel => they become influencers of the future clients
Use data coming from social media to make decisions
IV.
Expected result
 Improvement in positioning  Increase market share and revenue
The source for my article can be find here. Author: Veronika Kormanyos
https://twitter.com/VKormanyos