Luxury Hotels and Resorts Increase Occupancy
and Revenues
During Off Season Through Barter
New York, NY, October 22, 2000- Innovative Travel Marketing (ITM) is
impacting the occupancy and cash flow of luxury hotels and resorts during
the off-season by accepting available rooms as currency in exchange for
advertising services.
| Hoteliers know that the value of unrealized room
revenue can never be recovered. However, available inventory can
be used to increase occupancy and profit. ITM�s services offset potential
losses by accepting available room inventory in exchange for services of
value to the hotel while directing corporate groups and media clients to
the properties.
 Many
of ITM�s clients, such as The Breakers, The Arizona Biltmore and Turnberry
Isle Resort & Club, began their relationship with an opportunistic
sales meeting. Dave Burke, Vice President, Marketing of The Breakers
five-star resort says, �Ten years ago, we began a barter relationship based
on a $100,000 piece of summer group business. Over the years, ITM�s
groups have filled many gaps and we have benefited from incremental banquet
revenue. It�s been a great relationship. We always get exquisite
service from ITM, and they help raise our bottom line.�
The barter transaction allows hotels to receive full value for available
rooms towards services for which the hotel would normally pay cash.
ITM can use the available inventory for corporate groups or media clients,
thus increasing occupancy and average rate. Bartered room guests
also bring incremental cash revenue and the potential for future cash business.
According to Jody Merl, President of ITM, �Whenever you have excess
inventory, |
Maximizing the Value of
Available Rooms
ITM�s services afford hotel companies the opportunity
not to discount or lose room revenue while recovering full value in trade
credit. ITM trade credit can be applied as payment for a broad spectrum
of media, goods and services. Hotels are thus able to expand their
advertising campaigns while increasing their profitability. Further,
as customers are directed to the property, hotels are enjoying increased
occupancy and average rates.
According to Jody Merl, President of ITM, �ITM�s barter
services allow hotel companies to expand their advertising budgets and,
in some cases, give them the opportunity to run a consumer campaign when
there is no planned budget. Our clients can use available rooms to
pay for appropriate advertising services that can impact their business.
ITM then directs new business to the properties. The arrangement
benefits all involved, particularly as the hotels receive credit that equals
the full value of the room, which is not subject to commissions or sales
expenses.�
The barter process is relatively simple. For a 300-room
property running an 80% annual occupancy with a $200 average daily rate,
$4,380,000 of potential revenue is not being realized. By bartering
10% of the available inventory, the property can gain more than $400,000
worth of advertising services without displacing cash business. This
results in a significant increase in profit that will impact the hotel�s
bottom line.
�New hotels are opening in all major markets�, concludes
Ms. Merl. �In New York alone, over 3,000 rooms are scheduled to come
available in 2001. ITM is helping clients maintain a competitive
edge by maximizing hotel profit with barter revenue.� |
|
you should optimize that equity through barter. Particularly when
you have the opportunity to receive full value for that inventory with
the potential for future cash business.�
About ITM - Specializing in barter media placement and sales promotional
services, ITM�s focus is on the hospitality industry, where its associates
have more than twenty years of hotel sales and marketing experience. ITM�s
customized services provide clients, which include some of the finest hotels,
resorts and airlines worldwide, with a competitive advantage by optimizing
occupancy and maximizing profit through barter. Over 90% of ITM�s clients
repeat their barter advertising campaigns annually.
Innovative Travel Marketing (ITM) is a boutique barter consulting firm
specializing in media placement and promotional services for hotel and
travel industry clients worldwide. Established in 1992 by Jody B.
Merl, ITM has earned the reputation as the most highly regarded barter
advertising firm in the travel industry. ITM is headquartered in
New York City. |
