Hotel Distribution
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Ten questions hotels need to ask to tackle China as a source market
Most hotels in the region are exhaling a collective sigh of relief as China opens its borders and eliminates quarantine requirements. Any hotelier who is serious about taking on this market must ask the following questions to assess their readiness and develop a strategy. Do I go after this market myself, or do I leave it to OTAs and other agents? What proportion of business should come online versus offline? Do I really need a discounted rate or an offer? Will it leak outside of the Chinese market if I do? What has changed in China in terms of digital marketing post-pandemic? How can I reactivate my Baidu, WeChat, Meituan,…
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The top pitfalls that hotels must avoid in 2023
Everyone I speak with is upbeat about the coming year. This year may be the closest to normalcy since the pandemic. It is easy to get carried away or feel laid-back. Here are some things hotels should be aware of:Revenue versus budget: As the year progresses, demand may be higher than anticipated. It may be lower in rare cases. The benchmark should be market performance, not budget. RGI is the best option.Over-reliance on social media: Just because you have complete control over what you post on this channel does not mean it is the most effective. There are ads galore, and their reach is shrinking as personal content is prioritized.…
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What are the most important review sites for hotels?
For hoteliers, TripAdvisor and OTA reviews have always had a higher mind share. According to ReviewPro, TripAdvisor’s 2022 share of reviews hovers around the 10% mark. Close to 73% of all hotel reviews come from Google and Booking. Let us zoom out a bit because the review ecosystem is much larger than just hotels. According to a recent Reviewtrackers report (link in the comments section), 88% of business reviews (not just hotel reviews) are found on just four websites.Google (73%).Yelp - 6%Facebook - 3%TripAdvisor - 3%👉🏼 Thanks to Android phones and Google Maps, Google can prompt users to write reviews based on the locations they visit.👉🏼 It is part of a…
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Why do hotels make such a big deal out of one-day festivals and events?
One question I've had is why hotels feel the need to devote so much of their marketing budget, content space, and effort to single-day festivals or events. To be sure, they are a good way to promote yourself and catch the attention of some people. But ignoring all the other guests who need a place to stay for a long time before and after the event seems like a missed opportunity. Consider Loy Kratong or Christmas (or add your own festival here). They get a lot of attention in marketing plans and are promoted weeks or months ahead of time. Packages and offers compete with everything else for promotional space…
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Top five elements influencing conversion rates on your hotel website or app
There are various outside elements that determine how well your website or booking engine converts visitors into bookings. I'd say that most of the convincing happens before guests even come to your website. However, once they are on the booking engine, the following are the most important considerations:✅ Pricing is by far the most important consideration. You convert more if you have the "best rate guarantee" (BRG) and your rates are better or the same as elsewhere online.✅ Choices: More guests will book when the options for accommodation types, pricing, and packages are balanced.✅ Visuals: It helps if you can include a hero shot as well as links to the…
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Top ten questions to ask your OTA market manager
Most hotel team members meet or call their OTA market managers on a regular basis. It is important to keep them on their toes in order to maximize the revenue potential for your property.👉🏼 Can you influence my ranking and how much does it matter?👉🏼 Will the promotion or discount generate incremental revenue?👉🏼 How can I raise volume while keeping the average distribution cost per booking stable?👉🏼 How can I increase or maintain my market share?👉🏼 Will the increased advertising add to my existing commission or margin (distribution) costs?👉🏼 What can I do to reduce unilateral discounts, vouchers, and point-of-sale offers?👉🏼 What am I doing wrong in comparison to my…
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Four unconventional strategies to boost your RevPAR
Some strategies may look like discounts or freebies, but if you use them well, they could help you make more revenue overall. The following recommendations are intended for independent properties and small chains. If you have a high number of loyalty program guests, there may be less room for these tactics.💡 Upsell at a discount: Unless you expect to be completely booked, you can offer some guests the option to upgrade to the next category at a discounted rate. You free up more lead in rooms that may sell well in general and sell higher categories that may remain vacant.💡 Upgrade direct guests: If they paid full price, they will…
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Five Mistakes Hotels Make with Competitive Set
Competitive benchmarking is an invaluable tool. I've seen it go wrong in a variety of settings. The following are the top five. Anchoring price at a fixed position: Always pricing exactly x amount below or above a competitor. Alternatively, set the price exactly between competitors A and B. Not looking beyond the official comp set: On OTAs and Google/Maps, an entirely different set of competitors may be taking business away from you. Not looking at extranet for who they are or not looking at “Similar hotels nearby” is a mistake. Pressured into picking a wrong competitive set: Owners and top executives may put pressure on hotels to choose a competitive…
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Five hotel jobs (mostly commercial) that will disappear in the next five years
⭕ (Director/Manager) Sales/Sales & MarketingWhy: Because the majority of business has moved online. Traditional DOS/Ms can only contribute 10-20% of (offline) business.Indicators: Rather than DOS/Ms, more hotels are hiring well-rounded commercial leaders.The way forward is to expand into the dynamic rate world, managing OTAs and bed banks while also bringing revenue management skills to the table. Alternately, specialize in MICE, corporate, series, and group business.⭕ Revenue ManagementWhy: Revenue management systems are becoming more sophisticated and affordable. AI will even be able to address shocks caused by rapid trends or strategy changes.Indicators: Global brands no longer employ this position at the property level. Clusters are also being used by more properties.…
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The Growing Disparity between Guest experiences at Home and in Hotels
Do I need to provide a statistic to show how digitalization accelerated during and after the pandemic? Consider your own smartphone usage and the number of tasks you completed on it before and after the pandemic.So this is what your guests have become accustomed to.👉🏼 They can order food from the comfort of their own homes by using an app.👉🏼 Users can use shopping apps to order almost any product and have it delivered to their home.👉🏼 They have instant access to any type of entertainment.👉🏼 The majority of apps learn about the user and provide personalized recommendations.👉🏼 Their friends, as well as Google, Alexa, and Siri, respond immediately to…
