Revenue management is a quickly growing priority for European hoteliers, according to a recent industry survey.
Choice Hotels Europe’s recent “European Hotelier Pulse-Check” points to 2016 as the year of increased sales and marketing activity, with hoteliers buoyant about the European market and its potential, according to a recent story in Travel Daily News International.
Choice Hotels’ fifth annual survey took into account feedback from its franchisees, operators and general managers from the UK, France, Germany, Czech Republic and Italy in October 2015.
Outlining the key business imperatives of Europe’s hoteliers for 2016, the survey found that increasing sales and marketing efforts remains a top business priority, with a focus on nurturing new business. Coupled with this, 78% of those surveyed believe the hotel sector will see sustained upturn and that room rates will continue to perform well in 2016.
Revenue management at the fore
Revenue management and channel diversity will prove critical to maintaining sustained business levels this year, according to Choice Hotels Europe. Hoteliers are seeing increased value in revenue management, with 62% believing that an effective revenue strategy could increase room revenue by up to 10%. An ambitious 21% believe a strong revenue strategy could push room rate increases even higher.62% believe an effective revenue strategy could increase room revenue by up to 10%. Click To Tweet
Hotels are now looking to expand their range and further embrace online channels in the year ahead. More than half (58%) of those surveyed predict that the use of channel managers to maximise revenue management would be a main industry trend for the year.
Further revenue management developments include a continued move away from the BAR pricing model and toward more of an independent channel approach. As such, 24% of those surveyed said they would look at growing the number of client-specific rates offered.
According to Mark Pearce, senior VP of Choice’s international division, properties are now recognizing that, in order to stay ahead of the competition, they need to compete with innovative sales and marketing strategies. He stressed that Choice Hotels is committed to helping its hoteliers succeed, advocating revenue management tools as one way to stay ahead.
Reporting back from the WorldHotels Conference in Germany, Michael McCartan, managing director of EMEA for Duetto, says confidence levels are up in many of Europe’s markets. Spain, Portugal and the Nordic countries appeared to be flourishing, while regional UK continues to do well.
Hotels in Switzerland, which depegged its Swiss Franc from the Euro in January 2015, reported mixed results for 2015, although demand is now improving. So while the forecast is optimistic, delegates were advised to invest in integrated solutions to achieve greater revenue gains.
Growing market confidence and the positive results of the Choice Hotels survey show that 2016 could be the year for revenue management to shine. Hoteliers need to be creative with their pricing strategies, listen to the market and package their product according to their guests’ needs.
The Choice Hotels survey is a good barometer of what the year could hold as it highlights the opinions and sentiment of not only hotel managers, but also hotel owners – the people truly focused on the bottom line.
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