Calling all hotel revenue, yield & e-commerce managers. You have marketing diamonds at your fingertips, it’s all in the data. It’s time to tap in.
The role of revenue management in hotels is changing at a profound rate. Gone are the days of locked away number crunching.
These days revenue managers are reporting directly to top management and are bypassing sales and marketing in most cases. The insight and know-how they have is incredibly valuable. This phenomenon, driven by technology is causing disruption for property owners. Harnessing the power of revenue management insight and marketing creativity will significantly make marketing efforts more targeted.
Technology is driving this phenomenon at an unprecedented rate!
The multitude of tools providing deep insights means revenue managers are better-informed than ever before. The pace of change is forcing revenue managers to embrace new tools and techniques at accelerated rates to keep ahead of the ever-changing travel industry landscape.
Access to amazing insight
Running a simple, same time last year booking report that contains numbers of bookings, room nights, revenue, and average length of stay, lead time, and average daily rate (split on a monthly basis) can offer key insight for marketing campaign optimization.
Some key questions that may be answered:
- Identify strong/ weak periods during the year.
- How long are guests staying for?
- Which periods are guests most likely to search for and stay?
- Identify strong/ weak booking channels
- Which countries are converting most successfully?
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Combining answers to these questions, along with using website analytics to identify which marketing sources are converting most successfully is very powerful and targeted.
Targeted marketing campaigns with Revenue Management knowledge and insight will drive conversion to periods that need it most.
5 Step workflow:
- Raw Data Retrieval. This may be cross system, i.e. booking engine statistics, PMS data, competition reporting, Google Analytics, other website statistics programes, the list goes on. A good place to start is usually, the booking engine and property PMS.
- Data Preparation & Analysis. Involves the creation of clear, meaningful reports that make sense and can be digested quickly, to produce a real actions list.
- Action List Discussion. The action list contains how the action was derived, how it will be executed and how it will be supported with the right marketing actions. At this point it’s important to make sure everything makes sense and is not going to cause confusion with presented for approval. Confusion = Time Wasted.
- Approved Action List Execution. Rate occupancy recalculation & loading can take place here. Channel managers will likely only support 1 rate increase or decrease at a time. Coordinated approach to distribution of agreed adjustments through channel management solutions, revenue management tools, booking engines, partner extranets and implementation of supported marketing actions. Timing is everything.
- Action tracking. Remembering what was done and why it was done is important in avoiding future confusion. Be very detailed. Correct Action Tracking = Accountability.
Food for thought
The blend of revenue management and marketing departments will continue to tighten in years to come. It is highly recommended that you start investing in marketing training for revenue managers to capitalize. The return on investment (ROI) will be impressive.
It’s important that productive synergies exist between marketing and revenue management areas to avoid one undermining the other.