Hotels partnering with the Denver-based channel-management
specialists achieved significant increases in
same store,
online bookings per available room from 2002
to 2003
|
DENVER, COLO. � April 7, 2004 � Sceptre, a global reservations distribution
and channel management/advisory services company for the independent hotel/resort
and vacation ownership markets, reports a 23 percent average increase in
overall online bookings from the global distribution systems, third-party
distributors and the hotels� own web-sites, and a 132 percent increase
in bookings per available room for same store hotels in its portfolio from
2002 to 2003.
According to the PhoCusWright Consumer Travel Trends Survey Sixth Edition,
a new report released last month that examines online travel shopping and
purchasing behaviors, more than 35 million Americans purchased travel online
in 2003, five million more than in 2002. PhoCusWright projects that
hotel Internet gross bookings will reach $11.8 million this year, representing
16 percent of all hotel revenue booked online. By next year, PhoCusWright
projects online travel to reach more than $15.2 million�or 20 percent of
all hotel revenue booked online.
�What
these findings substantiate is that Sceptre client hotels are already way
ahead of industry averages for online hotel bookings,� said Mark Ozawa,
Sceptre VP. �Our internal audits�that track average rates, length of stay
and revenue generated through the various channels�show that Sceptre�s
strategic channel management and advisory service is making a big difference
for our customers. We understand how the various channels work and how
consumers are shopping. Together with our customers, we strategize on ways
to best position their hotels to get the results they are looking for.�
Proof Is In The Property
The Groton Inn, an independent property with 113 guestrooms comprised
mainly of suites and apartments, announced that since it made the switch
to Sceptre a year ago, the property has outperformed its competition for
occupancy and RevPAR.
�In our market, which is heavily saturated with branded hotels and which
caters to business travelers visiting the New London/Groton and Mystic
areas of Connecticut, occupancy across the board is down about 7 percent,�
said Nancie Keenan, Groton Inn General Manager. �Our occupancy, however,
is up 7 percent, and we attribute that increase to the channel-management
services and e-distribution support provided to us by Sceptre. Over the
past year, Sceptre has developed, implemented and maintained an overall
electronic-distribution strategy that has us not only competing head-to-head
with the bigger franchised properties in our area, but beating them in
occupancy and RevPAR. It�s almost like reaping the benefits of being associated
with a franchise without having to pay the fees.�
Keenan said Sceptre tends to yield a higher average daily rate for its
hotels, compared with competitors. In addition, RevPAR has increased by
60 percent since partnering with Sceptre, and overall property revenues
have increased by about $400,000 � although several factors contributed
to the revenue increase, she said.
William Howell, chairman of Boutique Hotel Management Group LLC, hails
Sceptre�s channel management/advisory strategy as its secret to success.
�To be successful in any business today, you need reliable business
partners,� Howell said.
�When BHG began the process of looking for an e-distribution partner,
we knew we needed more than just technology. What we wanted was seamless
GDS connectivity, Internet travel site connections, bookings and call center
representation. What we needed was greater visibility in the marketplace
and improved inventory management. What we found was a partner that consults
and advises on rates, which Web sites or channels to pursue, and generally
on �revenue management�. We commend our management team for selecting a
partner who will help drive more top-line revenue for BHG, and for the
owners of the hotels we manage.�
Education plays an important
role
Another key factor that leads to the success of Sceptre hotels is the
company�s dedication to continuing education. On April 28-29, Sceptre will
hold its 2nd Annual Client Training Seminar �Channeling Customers� at the
Hyatt Regency Tech Center in Denver. The continuing education event enables
Sceptre clients to network with industry experts and Sceptre team leaders
to identify new market opportunities; learn how to increase rate and yield
through revenue management, pricing strategies, parity, Web rate strategies
and packaging; and how to maximize Consortia opportunities. Other topics
to be discussed include: e-distribution, rate optimization, new online
opportunities, Web site successes, net rate wars and market analysis.
�Before hotels can achieve and maintain their projected occupancy levels,
and before they can implement the right channel management strategies,
with the right prices and the right on-line presence, they need to know
what �Channel Management� is and how the entire �Electronic-Distribution�
process works,� Ozawa said. "What may sound rudimentary to some managers
is very confusing to others. Consultation and continuing education is needed
from business partners like Sceptre if hoteliers are to be successful today.�
About Sceptre
Since 1987, Sceptre has helped chains, management companies and independent
hotels and resorts increase their sales and profits through GDS representation,
private-label voice reservations and consulting services. Sceptre provides
electronic distribution power and expertise previously reserved for branded
or franchised hotels, with state-of-the-art reservations technology and
a strong commitment to customer service and support. Sceptre is one of
the key business units of SWAN Inc., a multi-service company focused on
the hospitality industry. Other hospitality services of SWAN include Richfield
(hotel management), Shield (insurance and risk management) and Source (procurement
of operating supplies and FF&E). Swan Inc. is headquartered in Denver
with approximately 1,000 employees. The company's shareholders include
City e-Solutions Limited (CES) listed on the Hong Kong Stock Exchange,
and Millennium & Copthorne Hotels plc, a U.K.-based company listed
on the London Stock Exchange, operating 91 hotels worldwide. |