Seven trending hotel news stories that will impact your hotel Revenue Strategy.
1. It’s time to ‘decomplexify’ hotel Big Data
In 2017 and beyond, Big Data will control many hospitality functions — Revenue Strategy being one. The wide range of sources and complexity of data requires the industry to “decomplexify” the process to make it more accessible, integrated and useful. Here are 5 suggestions:
- Data needs to be better integrated rather than residing in discrete silos.
- The use of predictive intelligence can help hoteliers provide more and better service to guests.
- Revenue managers need to rely on additional data sources other than what is gleaned from the PMS and CRS.
- Chat and bots will move beyond guest-facing applications to improve hotel internal communication and file and data sharing.
- Going real-time and mobile ensures that multiple people on a property have the same access to the same high-level data at the same time.
2. It’s not too late for digital-marketing resolutions
This detailed and informative white paper presents 10 resolutions hoteliers should make for 2017 around the important topic of digital technology and marketing.
While the paper is complex, the underlying thesis is succinct: While 2016 was about brand companies’ book-direct strategies, in 2017 lowering distribution costs (the only cost driver hotels have control over) will be the only way to improve top-line revenue and the bottom line.Making Big Data More Useful, plus 7 trending #hotelnews stories #revenuestrategy Click To Tweet
3. Mobile marketing tips for 2017
We all know marketing through mobile devices is the way of the future — and also the present. The author provides some insights on mobile trends for the coming year and how marketers can capitalize on them:
- Location-based marketing is becoming a dominant tactic, but it must be employed in a strategic way.
- It’s not enough to develop and launch mobile apps since users often discard them after a few sessions. Instead, she advocates an app-plus strategy that incorporates additional features and benefits to users.
- Social media-based messaging has begun to replace texting as the optimal marketing communications platform.
4. How to compete with Airbnb’s ‘Experience’ offerings
As Airbnb ventures further into becoming a “super brand of travel,” it’s imperative for hotel operators to take stock of their offerings and develop strategies to prevent them from being marginalized by the approaching Airbnb tsunami.
The stakes are high for all hotels, but necessary responses to the threat differ somewhat between branded properties and independent hotels.
Branded, commoditized hotels will probably need to rely on their consistency of service, as well as location and loyalty programing. For independents, the author says the stakes are higher but the opportunities are also greater.
5. Luxury hotels embrace rent-by-hour schemes
Here’s another opportunity to revenue manage your hotel: rent rooms by the hour. While that typically has had a tawdry connotation, several upscale and luxury chains are embracing the idea through the use of the France-based booking platform Dayuse.com.
According to news reports, AccorHotels and Marriott International are using the site to rent rooms during empty daytime hours at some properties in France. Executives of the site say 600 hotels in France have signed up for the service.
6. Private accommodations sector is eating your lunch
If your hotels are in some markets — New York, Miami or London, for example — you know the power of the private accommodations sector and its big player, Airbnb. According to new data, that niche of the industry continues to grow quickly, although not at a rate some thought.
The global alternative accommodations sector will have bookings of $106 billion by 2018. That’s up from $88 billion in 2016 and will represent 19% of global accommodations bookings.
The firm conducting the research speculates that online travel agencies, especially those under the Expedia, Inc. and Priceline Group banners, have tapped into alternative accommodations and should see increased revenues from this sector.
7. What kind of year is ahead for Revenue Strategy?
Analysts love to identify the trends they see ahead for the coming year. For everyone involved in revenue and channel management, 2017 promises to offer both challenges and opportunities, especially given the forecasts of generally flat industry performance. A few trends to watch:
- The growing power of Airbnb and other sharing economy sites;
- The potential for Google to become a travel super brand that usurps the marketing power of online travel agencies and hotel brand companies;
- A make-it-or-break-it year for brand companies’ loyalty club direct-booking initiatives;
- The potential of additional consolidation among brand and ownership companies;
- The diminishing influence of corporate travel programs on business travelers.
Stay up on hotel Revenue Strategy news and discuss industry tech trends in the Hotel Revenue Strategy Leaders Group on LinkedIn.
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