While 2016 was marked by uncertainty and political instability in Europe and parts of North America, it was mostly business as usual in Asia. However, in today’s connected and globalised world, nothing happens in isolation. As hoteliers in the Asia-Pacific region wait to assess the fallout from 2016 on hotels in Europe, they nonetheless should be getting proactive about limiting their own downside risk in 2017.
It’s no secret that hotel operating costs are on the rise, in many cases at an even higher clip than revenue. Hoteliers are pointing to inflated digital marketing costs, and with the emergence of new distribution channels like Google, TripAdvisor and Facebook, the cost of acquiring guests is higher than ever before.
Is it already time to abandon the hotel loyalty pricing strategies that were, until recently, so highly touted for their potential to stave off OTAs? Definitely not, but they should be improved through better use of Big Data.