Do you know what the conversion % is of your hotel's reservations department? We seem to put a lot of focus on our website conversion statistics, but how many calls are we actually converting in to bookings. Phone sales is a very important direct sales channel for hotels, consumers are making the effort to contact you directly, and should be easy to convert. Why is it though that many hotels have such a poor sales process? Is hotel management not on the ball ?
Yes 2012 will be all about distribution in the hotel industry. There are some major developments that demand attention of hoteliers in order to stay in control of the market mix and distribution cost. Here some of the hot topics of next year: Google Hotel Finder, Meta-Search and Rate Parity, OTA Commission Levels, Direct Sales …
The previous two articles on Spa Revenue Management should have convinced you, that in order to generate more profit with this business unit, a more strategic approach will need to be implemented, comparable to the way revenue management is applied to hotel rooms. Key performance indicators have to be defined to help understand the patterns of demand and customer behavior. Now we will take a closer look at different pricing techniques.
The focus of hotel asset management has traditionally been on cost control. Reducing the operational or flexible costs on the hotel balance sheet is what used to determine the profitability of a hotel. Over the last few years, focus has shifted !
I kid you not, there are still people convinced that revenue management is not applicable to resort hotels and belongs in city markets only. Last week I was blown away when a ‘senior contract manager’ of an important UK based OTA claimed rate yielding is not for resort hotels.
No time to lose, 2012 is almost here. And a good plan isn’t made overnight. How far are you with your targets, budget and plan of attack for next year? What REVPAR and GOPPAR do you need to achive? Is your hotel marketing plan complete, and does it describe all actions in detail? Does everyone on the team know what the objectives are and which steps to take to get there?