Increase revenue by reserving space for valuable guests
Effective Revenue Management means measuring the value of a guest not just in terms of room rate or REVPAR but also in terms of potential for other profit centers such as F&B, the spa, other attractions within the hotel or facility.
Hoteliers who simply accept reservations at the rate they ask will never know how much better revenue might have been had they saved rooms for guests that provide higher value. Hotels should start measuring and tracking a guests profitability as a 2% increase in customer retention is equivalent to a 10% reduction in costs. (Chatterjee A., Hospitality Upgrade 2006).
Hotels are often unaware of:- How much money they are leaving on the table- How many of their customers will never return- How many of guests are not the segment that will generate revenue in the future?- How much it costs when high value customers are turned away to accept the one night stay at a higher rate- The cost of constantly marketing towards customers that probably will not returnAs email addresses offer a fast, cheap and easy way to cement guest relationships hotels should capture these by asking at check in or check out or on a permission box on the hotel web site. As reason for guests to provide these email address could be so that the hotel could send the guest a copy of their bill together with a request for a guest feedback on their recent stay at the property. Studies indicate that guests are more likely to respond to email surveys than to a survey mailed to them. The survey also contains a section where permission is given to receive occasional promotions from the guest.Information can be use to target certain guest demographics at times of the year when they are most likely to be making reservations. It can be used for all market segments and the promotions can be used for email postcards and flyers or mailings in the absence of email addresses. Capturing the information now will enable the hotel to use it later - this is especially critical for independent hotels.The CRM process is not difficult but needs to be thought out and become a part of the overall marketing and revenue management strategy. The cost of CRM is far lower than the cost associated with most of the other reservation channels.
Source: http://www.carolverret.com/
Hoteliers who simply accept reservations at the rate they ask will never know how much better revenue might have been had they saved rooms for guests that provide higher value. Hotels should start measuring and tracking a guests profitability as a 2% increase in customer retention is equivalent to a 10% reduction in costs. (Chatterjee A., Hospitality Upgrade 2006).
Hotels are often unaware of:- How much money they are leaving on the table- How many of their customers will never return- How many of guests are not the segment that will generate revenue in the future?- How much it costs when high value customers are turned away to accept the one night stay at a higher rate- The cost of constantly marketing towards customers that probably will not returnAs email addresses offer a fast, cheap and easy way to cement guest relationships hotels should capture these by asking at check in or check out or on a permission box on the hotel web site. As reason for guests to provide these email address could be so that the hotel could send the guest a copy of their bill together with a request for a guest feedback on their recent stay at the property. Studies indicate that guests are more likely to respond to email surveys than to a survey mailed to them. The survey also contains a section where permission is given to receive occasional promotions from the guest.Information can be use to target certain guest demographics at times of the year when they are most likely to be making reservations. It can be used for all market segments and the promotions can be used for email postcards and flyers or mailings in the absence of email addresses. Capturing the information now will enable the hotel to use it later - this is especially critical for independent hotels.The CRM process is not difficult but needs to be thought out and become a part of the overall marketing and revenue management strategy. The cost of CRM is far lower than the cost associated with most of the other reservation channels.
Source: http://www.carolverret.com/
Labels: Increase revenue, valuable guests
posted by Kate at 12:34 pm
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