Hotel Online
News for the Hospitality Executive
.
   Hospitality Upgrade



Wanna Raise Your ADR?

Audit Your Revenue Channels


This article is from the Summer 2010 issue of Hospitality Upgrade magazine.To view more articles covering technology for the hospitality industry please visit the Hospitality Upgrade Web site or to request a free publication please call (678) 802-5307 or e-mail.
By Cindy Estis Green
June 2010

click to view magazine version of this article

Digging out from the recession of 2009–it requires a systematic review of your segments and channels. Now is a good time to take stock and evaluate every revenue opportunity as though you are opening your hotel for the first time.

It can take five years for a hotel to regain the rate lost from discounting during a recession. That was certainly the case in 1991 and 2001.The faster the management team breaks out of the recession mindset, the better. It is almost time to start work on the 2011 marketing plan and wasn’t that the year the pundits told us business volume would be back? They say there is now a light at the end of the tunnel. While the industry succumbed to intense rate pressures and stole business from each other with reckless abandon, the consumers continued to expand their use of online resources for travel shopping, purchases and to have conversations about their experiences. And those experiences included a lot of deals. If the industry plans to shift consumers away from the deal mentality, it will take some planning to move to a more profitable business mix. An audit of each major revenue stream and the levers that turn them on can reveal new opportunities.

Revenue comes in the form of market segments that are named for the customer’s trip purpose.  Typical market segment categories in hotels are corporate transient, leisure transient, meetings, conventions, wholesaler/tours and long term contracts. The customers are influenced by content in information and media channels, and their bookings come through reservation channels. The recession didn’t slow the explosive growth of the media and booking channels.  If you want to affect your volume and your rate, you can examine your business mix by segment and/or by channel. Be where your customers are; in order to do that you have to make sure you have compelling messages to attract, inform and engage and tools to facilitate booking (in reservation channels).

Every customer group is now online checking you out on the aggregated online travel agency sites, on the so-called non-transactional sites such as Trip Advisor, meta-search, social media, travel guides (many of which have booking links) and of course, the major search engines are a powerful driver of traffic to all online destinations.

What kind of traffic do you want? Preferably the kind that converts to definite business at good rates. High traffic volume is not the objective-it’s the old quality vs. quantity argument. You want qualified prospects coming to your Website and your call center that are inclined to book. Since almost seven in every 10 travelers conduct at least one step of their shopping/purchase process online1, this needs to be a high priority. There has to be a distinctive plan for each major guest category that a hotel pursues: corporate, leisure and group/meetings. It is a great time to take a fresh look.

Revenue Channel Audit
There are a few methods that are common to all customer segments and they need to be evaluated with each customer type in mind.

This is an excerpt from the Summer 2010 edition of Hospitality Upgrade. To read the method Cindy suggests above please visit http://www.hospitalityupgrade.com/_magazine/magazine_Detail-ID-515-Wanna-Raise-Your-ADR-Audit-Your-Revenue-Channels.asp


About the Author:
Cindy Estis Green is the managing partner of The Estis Group, a marketing consultancy and recently launched a new Website showcasing innovation and best practices in sales and marketing,
www.drivingrevenue.travel.



.
Contact:

Geneva Rinehart 
Managing Editor 
Hospitality Upgrade Magazine 
and the Hospitality Upgrade.com website
www.hospitalityupgrade.com/
grinehart@hospitalityupgrade.com

.
.
Also See: Data Security: So You've Been Breached, Now What? / Jeremy Rock / July 2010

Hospitality Upgrade Releases Summer 2010 Digital Edition / June 2010

HITEC Exhibitors -- Exclusive Video Opportunity; Technology Companies Have Opportunity to Produce Their Own Videos at a Fraction of the Cost during HITEC with the Help of Hospitality Upgrade and Realview TV / May 2010

Hospitality Upgrade Magazine Expects Record Attendance Numbers at Highly Anticipated Ninth Annual CIO Summit; The CIO Summit will be held September 8-10, 2010 at the Omni San Francisco Hotel in San Francisco, California / May 2010

Hospitality Upgrade Launches Redesigned Web Site / April 2010

Notes: From an IT Service Shop - The Latest Virus Threats: Antivirus Soft, Internet Security 2010 / Geoff Griswold & Bert McDonold / April 2010

7 Steps to Position Your Hotel in the New OTA Environment / Tim Coleman / April 2010

Is Your Site Hospitable? 5 Simple Strategies You Can Use to Improve the Customer Experience and Dramatically Boost Conversion / Claude Guay / December 2009

Aligning Digital E-commerce, Distribution, IT, Revenue Management, Sales, Operations and Marketing Objectives / David Atkins / December 2009

Sales 3.0 Technology; Key to New Business Development in 2010 & Beyond / Carol Verret / December 2009

Hospitality Upgrade Magazine Surveyed Hospitality Industry's Top Technology Leaders at Annual CIO Summit With Intriguing Results / October 2009

Hospitality Upgrade Magazine Reports Record-Breaking Attendance for Annual Meeting of Hospitality Industry's Top Technology Leaders; The eighth annual CIO Summit will be held September 9-11, 2009 at the Royal Sonesta Hotel in Cambridge, Massachusetts / August 2009

Twitter or Not to Twitter; Time Waster or Lead Generator? / Cindy Estis Green / August 2009

Clean Up Your (Server) Room! And find some immediate cost saving hiding in plain sight / Lyle Worthington / July 2009

Marketing to the Cell Phone Generation / Bill Geoghegan / July 2009
.

To search Hotel Online data base of News and Trends Go to Hotel.OnlineSearch
Home | Welcome| Hospitality News | Classifieds|| Industry Resources | Press Releases
Please contact Hotel.Onlinewith your comments and suggestions.