Ask the Experts
When it comes to revenue management, distribution, and digital marketing topics, Revenue Matters has the answers. Browse frequently asked questions below, or submit your own question. Together, we can help improve revenue performance across the hospitality industry.
What is a Hotel Marketing Mix?A Hotel Marketing Mix is the combination of tools and strategies a marketer uses to influence demand. This is also known as the 4 P’s of marketing: Product, Price, Place, and Promotion.
- Product: Everything that makes your hotel stand out from the competition.
- Price: The actual price a consumer pays for the hotel room.
- Place: This is also referred to as Distribution in hospitality marketing, a.k.a. on which channels is a hotel bookable.
- Promotion: How you are driving demand to your hotel — organic website traffic through a well search engine optimized website, digital advertising, metasearch listings, email marketing, social media, print ads, etc.
If I were to pick one Social Media Platform to make my mark, which would get me the most reach?Ultimately, having a presence on the “Big 3” — Facebook, Instagram, and Twitter — is the safest bet for organic reach to all ages and demographics. These sites are crucial no matter what your audience focus might be and if you have a presence on each, you are making sure you aren’t leaving out a potentially profitable audience that you might not otherwise be reaching if you limit yourself to one channel.
Why is it important to answer ALL reviews, both Good and Bad?Guest reviews are increasingly important because they show trust for other consumers with firsthand recommendations and experiences. It is important to respond to as many reviews as possible, both good and bad, because hotels that leave management responses to reviews are 21% more likely to receive a booking inquiry through that website.
What is the best way to market to Past Guests/Build Loyalty?Building loyalty is the #1 way to drive increased revenue for your property. The best way to build loyalty is to nurture the existing relationships you have with past guests and prospects through targeted email marketing, engaging social media posts, and interactive marketing campaigns designed to generate response from your past guests.
What is a Warm vs. Cold Audience on Social Media?The Cold Audience are those who haven’t seen or engaged with your content. The Warm Audience are those who have engaged with your content, visited your page, or watched more than three seconds of your video.
What is the Billboard Effect?The billboard effect is when a property experiences a rise in direct bookings after partnering with a 3rd party booking channel. The rise in bookings is due to new guests who have been introduced to the property via finding it on a 3rd party booking site. In this case, the guest may primarily use a 3rd party for their initial research but then use the direct website to finalize their booking.
What is a fenced rate?A fenced rate is a rate that requires certain requirements to be met to be booked. A common example would be advance purchase offers that must be booked within a minimum lead time. The popularity of a fenced rate can suggest if your market is price sensitive.
What are the benefits of creating an overbooking strategy?There are several benefits of creating an overbooking strategy, including:
- Maximize total capacity and increase revenue.
- Identify historical data patterns of cancellations and no-shows to apply to the overbooking strategy and uncover opportunities for future strategy.
- In many cases, sending a guest to another hotel, offering a future discount, or providing alternate compensation costs less than an unoccupied room.
Why is Forecasting so Important?Forecasting allows hotel management to anticipate future events and plan for them ahead of time. Accurate forecasts are invaluable because they allow the hotels to prepare for bad news while also capitalizing on high-demand periods.
What is Perishable Inventory?It is the concept that there is a limited window to sell a product or service, and once the window closes, the ability to sell that product or service is gone. If you miss the opportunity to sell a room on Monday, you have missed that opportunity forever.
What is the difference between Revenue Management and Revenue Strategy?Revenue management started as a role to manage rates and inventory in a more reactive position. It has grown due to the availability of data to incorporate information on market demand, market segments, competitor rates, historical data, events to help understand a more accurate market view to target the right guest and when.
Revenue Strategy uses proactive approaches for long-term revenue management by utilizing marketing automation, sales effectiveness, and analytics. The goal is to sell the right product to the right customer at the right time for the right price. Working in conjunction with marketing to incorporate data technology to enhance guest experiences with customization options for promotions and personalize retargeting, grow and identify feeder markets, and utilize distribution data and pick up for digital marketing has created an all-encompassing approach to predict and anticipate guest behavior. This approach leads to optimizing pricing, product availability, and distribution to maximize incoming revenues.
What first step should I take to start optimizing my hotel revenue strategy?Clean systems are essential to creating a firm foundation. Are all the rate plans and room types properly configured between your PMS and CRS? Are there rate plans no longer in use that need to be set inactive? Are restrictions and strategies flowing correctly between the two systems? Once you have a clean system, you can build on your strategy, knowing you have a firm foundation.