Carol Verret Consulting and Training Consulting Training Seminars |
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. . The 20% Solution to Increased Market Share and Revenue . |
October 6, 2009 - PKF states that �Our research over the past 10 years reveals that seventy-five to eighty percent of a hotel�s performance is systematically a function of changes in the larger market in which the property is located,� notes John B. (Jack) Corgel Ph.D., Senior Advisor to PKF Hospitality Research and the Robert C. Baker Professor of Real Estate, Cornell University School of Hotel Administration. �And who is better at knowing that remaining twenty to twenty-five percent than the local property owner or operator? The person in charge of the hotel knows when rooms will come in and out of service, when renovations occur, and when competitors open across the street.� (Hotel Marketing, August 14, 2009) The local market may be fraught with challenges � new supply, major demand generators cutting back on budgets and revenue dilution due to heavy discounting. These factors comprise the 80% that is out of control of individual properties � accept it and move on to the 20% that you can control. How would the numbers look different if you generated an additional 20%? That means that 80% of your market is out of your control but that 20% is the difference between 100% market share and 120% -- that 20% could be the difference between servicing the debt on your hotel or not, that 20% can save a few jobs in your hotel. 20% can easily be spread among multiple market segments. Market share will determine which properties are best positioned to move rate when the recovery begins. There are various reports that most hotels have access to that indicate market share by market segment. Those include the Hotelligence report, the monthly STR report and some of the reports furnished by the OTAs. An analysis of these reports read with an eye toward market share reveals opportunities for achieving that additional 20% over the market average. Achieving an additional 20% or whatever percentage the hotel is below 120% market share is doable. A strategy developed across all market segments based on report analysis of which market segments have room to move the needle on market share, can yield significant revenue benefits.
If the next 45 days is critical in terms of demand, are ready to �own� an extra 20% of any increase in demand? The 20% Solution Consulting Package is available now � email [email protected] for details. Carol Verret and Associates Consulting and Training offers training services and consulting in the areas of sales, revenue management and customer service primarily but not exclusively to the hospitality industry. To find out more about the company click on www.carolverret.net. To contact Carol send her an email at [email protected] or she can be reached by cell phone (303) 618-4065. Visit www.hotelsalesblog.com.
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Carol Verret 5910 S. University #C-18, PMB 374 Greenwood Village, CO 80121 Telephone: (303) 618-4065 [email protected] Web Site: http://www.carolverret.com/ Email: [email protected] |