Stay Ahead with Marketing Automation and Revenue Management
At BEONx, encourage you to consider the benefits of revenue management and marketing automation.
Years of meticulous planning, quality services and an effective Revenue Management strategy have led large chains such as Hilton, Marriott and Hyatt to develop technologies to optimize their very interesting resources.A Phocuswright study revealed that, until 2015, hotel chains grew three times faster than other types of hotels. The challenge is in balancing product, technology and distribution, making it necessary to improve revenue management planning and automation.
Personalized marketing and data are changing the way hotels interact with guests. Standardized systems that are market specific along with a competitive product can rival systems of large hotel chains. Here’s are some areas worth focusing on:
Prioritize GOPPAR over Occupation
In an era of more than competitive pricing, it is important that we prioritize factors such as the gross operating profit per available room (GOPPAR) and optimize data such as the average daily rate (ADR) leaving occupancy in the background (but not downplaying it). As an example, a hotel with 78% occupancy and higher rates may generate more revenue than another hotel with 100% occupancy.
Optimize Distribution Systems
Distribution system optimization can be a challenge for hotels, so it’s important to give it the right attention. The following questions will help you address the main concerns that come up with channel management optimization:
Which combination of distribution systems is most cost-effective?
Which one offers a good cost-benefit ratio?
Which system provides maximum long-term profitability?
How can systems be integrated to avoid errors in the calculation of inventory and reservations?
Select the right channel mix to avoid making continuous changes in distribution decisions and wasting valuable time and resources. Build long-term relationships with guests and the most profitable channels.
Take advantage of dynamic pricing
Dynamic pricing and price optimization software ought to be a focal point for hotels. Demand forecasting should optimize arrivals, bookings, conversions, cancellations, group bookings, seasonality and loyalty between hotel and guest.
A revenue management system (RMS) is key for comparing prices, controlling inventory, providing hotels with the market information they need and assisting in making distribution and pricing decisions. For revenue managers it’s necessary to acquire pricing skills and to use these skills to appeal to price-sensitive customers. Ultimately, the key lies in a revenue manager’s ability to use the right information and develop strategies to combine the human aspect with technology.
Focus on selling non-room resources
Who said that selling rooms is the only way hotels generate revenue? Bars, swimming pools, game rooms and spas are also an important sources of income. Hotels who offer premium services can work strategically using guest information such as segmentation, forecasts, demand and distribution.
The Big Data as a lever to analyze the habits of the guests
Data collected from different platforms is used to analyze your guests’ booking behavior. This data offers valuable information regarding guest preferences, changes in the evolution of market pricing, occupancy, etc. The goal is to save time and resources on critical factors such as direct bookings.
From BEONx challenge you to take the leap and automate important marketing tasks. We understand that a personalized automation software requires an investment, however, the long-term operational benefits make it worth it.
Automate the analysis. According to a study carried out by the company Google, revealed that 36% of travelers booked a hotel based on online reviews. A marketing automation program allows you to analyze and efficiently manage reviews on OTAs, meta-search engines and travel social networks.
Automate emails. You can get guest email ids at check-ins or when they book online. With this data you can send automated emails with offers, hotel features and request guests to write reviews on online booking platforms.
Automate with transactionals through templates. It is possible to build a system of automated templates with common travelers’ questions. The same applies to communication between departments in order to keep various related operations running smoothly.
Automate campaign performance analysis. Your marketing campaigns need to go through a comprehensive analysis to know which ones you need to maximize and which ones you need to eliminate. The data that provided you information about campaigns with the best results, demographic characteristics, the time of year, etc., can be obtained automatically and will be analyzed periodically by the software so that you can focus more on building your marketing strategy than manual reports.
Automate guest preference analysis. A marketing automation program can provide valuable guest information- contact details, guest type, whether they opted for a particular booking plan or used any services beyond the room.
Automate analysis of performance of distribution channel. Having a channel manager or an RMS allows you to analyze your distribution channels. RevPar and the decision-making process can be automated based on data about the amount of revenue generated through different channels.
Independence offers flexibility and creativity. Large chains have strict rules and procedures, but when you get rid of the rigidity, creativity flows freely. When you join this with marketing automation software and Revenue Management, you’ll be delighted by the many benefits and opportunities you’ll experience.