HOTEL REVENUE MANAGEMENT & MARKETING PLAYBOOK Winning the occupancy battle in the next 6 months!
MOTTOS
MOTTOS WE USE 1. The demand you normally capture is not reflective of the total market demand, so focus on what you not normally capture! 2. Make sure you do the fundamental basics first, focus on survival and then focus on what everyone else is doing (eg: the custard analogy‌I can explain) 3. The fisherman with the bigger net and the better bait is more likely to catch fish! 4. No place for dreamers or unrealistic fools at this time. Economic principles and market pressures mean that rates will go down and you will need compete to capture more than your fair share to keep your hotel open, your staff employed and minimise losses.
FUNDAMENTALS
FUNDAMENTALS WE TRUST 1. Revenue - Cost = Profits, That is Only if You Can Capture Revenue 2. Demand vs Supply = Pricing Equilibrium, If There is More Supply Than Demand, Economic Principles and Market Pressures will Drive Prices Down. You need to steal demand. 3. Wider Distribution Net = More Chances to be Visible 4. Good Value for Money = Quality / Price = More Chances to Capture Demand & Convert = Higher OTA Ranking = Sales
RATIONALE
MARKET FORCES
KEEP RATES UP? FOLLOW THE MARKET? DO YOUR OWN THING?
GAME THEORY – Winner vs Losers
HUNGRY? HAVE NOT EATEN FOR WEEKS?
WAIT FOR THIS ONE!!
SCENARIO 1 – WAITING FOR BIGGER MEAL
SCENARIO 2 – EAT MORE AS THEY COME
FISHERMAN WITH BIGGER NET…
NAVIGATING YOUR MARKET
Source: Tourism Research Australia
NAVIGATING YOUR MARKET • Domestic: • 94% of visitors, 69% of accommodation RNs. • LOS: >3.5 Nights.
• International: • 6% of visitors, 31% of accommodation RNs. • LOS: >22 Nights. (3-4 destinations visited on average)
POST COVID MIDWEEK • • •
• Business Travellers: • 22% of visitors, 17% of accommodation RNs. • Domestic LOS: >3.3 Nights • International LOS: >11 Nights
• Leisure Travellers: • 78% of visitors, 83% of accommodation RNs. • Domestic LOS: >3.5 Nights • International LOS: >25 Nights
Lower demand from corporate, government, entertainment. Growth of small incentive groups Increase domestic leisure business
POST COVID WEEKEND / HOLIDAYS • •
Higher demand short – mid term Outbound departures travel domestically. Source: Tourism Research Australia
TOUCH POINTS > VISIBILITY ON SEARCHES > CONVERSION Position your products with a price and value attracting as many consumers as possible
DISTRIBUTION – THE NET
CONSUMERS FIND THEIR WILLINGNESS TO PAY ON OTAs…. IF A HOTEL PROVIDES VALUE ALIGNED WITH WILLINGNESS TO PAY, THEY CONVERT
VALUE = QUALITY / PRICE
“Price is only an issue in the absence of value. ... When something has value to a person, the price they put on it is higher.”
VALUE – THE BAIT
KEEP MY RATES UP?
5 STAR HOTEL FOR ONLY $XYZ! BARGAIN
TOUCH POINTS > VISIBILITY ON SEARCHES > CONVERSION
Position your products with a price and value attracting as many consumers as possible. THIS SHOULD DRIVE HIGHER VISIBILITY ON ALL CHANNELS
ACTIONS
ACTIONS….. 1. Create a Plan….include your customer service, sales, revenue and marketing teams • Set your objectives, this ensures everyone works towards the same outcome and activity is optimised to deliver the objectives • Plan in stages: think about the short term (tactical), medium (engagement) and long lead (nurture) • Consider all your hotel revenue streams: Rooms, Food & Beverage, Conferences, Events/Weddings, Retail, Tours • Consider all your distribution channels
ACTIONS….. 2. Focus on Increasing Exposure and Consumer Touch Points: • Establish relationships and partnerships with new distributors to increase you chances to capture the niche segments they focus on. • Speak to your OTA & trade partners on how you can increase exposure on their channels. • Improve your content and do the basics, tick boxes (eg: Air Conditioning) • Leverage your DMO activity, ensure your listings are up to date, follow and share what they’re putting out (they have the big budgets and they’re spending)
ACTIONS…. 3. Optimise Your Website: • Review, refresh and extend your website content (copy, imagery, video, virtual tours) • Optimise your booking funnel and increase conversions (invest in technology / heat mapping / AB testing) • Include “why book direct” & “COVID safe” messaging to win the booking • Highlight your top 10 features or services why they should choose you (over your next door neighbour) • Create “secret” or “subscriber only” offers • Do anything & everything in your power to capture the booking direct
ACTIONS…. 4. Pricing: Focus on Value for Money for All Target Segments / Try to Gain Market Share: •
Create differentiated offers for different target markets: • Length of Stay • Room Type Increments (Organic Upsells) • Price Driven • Value Adds (eg; Parking, F&B Packages, Late Check-out, etc..) • Corporate / Government / Entertainment
•
Ditch the friction / Make it easy for consumers to book you (eg: remove nonrefundable / non-cancellable restrictions and go fully flexible. Consumers need flexibility with cancellations in these uncertain times.)
ACTIONS…. •
Distribute offers to all your segments to support them and their sale processes (eg: Corporate, Government, C&E). Their P&L is under pressure and yours will be also for a few months. Give them something compelling to gain share, however, fence it with a validity period.
•
Create new products for new segments (eg: do you have rooms big enough to attract a family but have never actively promoted to them. Perhaps a small investment in a sofa bed could create a new segment)
•
There is no rate parity now: focus on exposure via OTAs as consumers search on them, focus on converting these direct with an unreal offer.
ACTIONS…. 5. Invest in marketing with a defined ROI or smaller cost / high engagement potential: • 68% of travellers who intend to stay at a hotel feel most comfortable booking with one they stayed at before > nurture your past guests • Clean, organise and segment your database • Implement automated trigger emails: welcome, win-back or cart abandonment, pre-arrival upsells, arrival email, post stay email • Social Media, use both organic and paid to build relationships with your audience, deliver value = it will keep them engaged and coming back for more • Invest time & resources in setting up your conversion funnel and creative assets, targeting users in every phase, utilise a combination of Paid Search, Digital Display & Social. • Continously Optimise your Campaigns > Measure, Review, Adjust, Repeat
ACTIONS…. 6. Focus on the Guest Experience / Turn Past Guests into Repeat Visitors and Advocates: • Make sure you put extra effort into the guest service, aim to surprise & delight them throughout their stay. Examples: • Offer a free amenity on arrival or as a turn-down service; chocolates, bottle of bubbles, local artisan biscuits, hand-sanitiser and face-mask, personalised welcome card • Offer free early check-in or late check-out • Offer a free room upgrade
• Positive guest reviews and word-of-mouth = unmeasurable value • Encourage repeat visits and w.o.m/social sharing by offering an exclusive offer or discount which they can also share with their friends and family
QUESTIONS & THANK YOU Matthias Dybing
Janneke Leffers
Director of Revenue
Director of Marketing
0401 758 750
0449 544 492
matthias.dybing@nuvho.com
janneke.leffers@nuvho.com