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  • Revenue Management
  • Revenue Measurement Is Not Revenue Management

  • In pricing and revenue management, hedging your bets with a tried-and-true process may actually be riskier than taking a chance on something different. It sounds counterintuitive, but the fact is that the conservative route to pricing practices is costing big hospitality firms millions in revenue, risking their future viability.

    Over the past few decades most hotel chains have adopted some form of automated revenue management (RM) system. But there are still some medium and large chains that have not. Worse yet, as some of these chains churned through acquisitions and ownership changes, their RM systems were abandoned or shut down. During the last decade's brand consolidations, industry realignment and ownership changes, business intelligence (BI) tools were growing in maturity and sophistication.

    Fifteen years ago, when I was a brand new analyst learning pricing at a major airline company, business intelligence tools were more humbly known as “reports.” Woe to the analyst assigned to produce reports — it was an arduous and time-consuming task.

    he old paper BI reports gathering dust in binders on an executive's shelf. Where there used to be a data warehouse, best-in-class companies now have a data “convenience store” that enables all manner of fancy, web-based, interactive, real-time dashboards ...

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Hotel Business Review Revenue Management

David Chitlik
Bob Lowe
Jose Acosta
Paul van Meerendonk
Paul van Meerendonk
S. Lakshmi Narasimhan
Kelly McGuire
Michael McCartan
Coming up in February 2019...

Social Media: Getting Personal

There Social media platforms have revolutionized the hotel industry. Popular sites such as Facebook, Twitter, Pinterest, Instagram, Snapchat, YouTube and Tumblr now account for 2.3 billion active users, and this phenomenon has forever transformed how businesses interact with consumers. Given that social media allows for two-way communication between businesses and consumers, the emphasis of any marketing strategy must be to positively and personally engage the customer, and there are innumerable ways to accomplish that goal. One popular strategy is to encourage hotel guests to create their own personal content - typically videos and photos -which can be shared via their personal social media networks, reaching a sizeable audience. In addition, geo-locational tags and brand hashtags can be embedded in such posts which allow them to be found via metadata searches, substantially enlarging their scope. Influencer marketing is another prevalent social media strategy. Some hotels are paying popular social media stars and bloggers to endorse their brand on social media platforms. These kinds of endorsements generally elicit a strong response because the influencers are perceived as being trustworthy by their followers, and because an influencer's followers are likely to share similar psychographic and demographic traits. Travel review sites have also become vitally important in reputation management. Travelers consistently use social media to express pleasure or frustration about their guest experiences, so it is essential that every review be attended to personally. Assuming the responsibility to address and correct customer service concerns quickly is a way to mitigate complaints and to build brand loyalty. Plus, whether reviews are favorable or unfavorable, they are a vital source of information to managers about a hotel's operational performance.  The February Hotel Business Review will document what some hotels are doing to effectively incorporate social media strategies into their businesses.