When creating a distribution strategy for the hotel, it's vital to consider channel-specific acquisition and distribution costs. But should it be the primary factor when choosing a hotel's distribution mix? I think that before calculating channel costs, hoteliers need to answer the following questions: Which segments book through a specific distribution channel?Will the hotel get access to these guest segments through other channels?Does the distribution channel generate unique demand? Does the distribution channel generate demand in high or low demand periods?How much ancillary revenue hotel generates from guests booked via a specific channel? Once these questions are answered, it's time to calculate distribution costs per channel.
BenchDirect by The Hotels Network is the first benchmarking platform for the hotel's direct channel. This article shows an example of how BenchDirect tools can help hotels spot opportunities and improve direct bookings.
Travel demand will come back, allowing hotels to open positions and hire back staff members. The question is, what should be the post-COVID19 labor strategy? The pandemic taught hotels to do more with fewer resources and showed the importance of hospitality technologies.
At first, offering a lower rate on the hotel's website sounds like a great idea. Guest looks for the hotel, sees various rates in Google search results, finds the lowest rate, and proceeds to the hotel's direct channel to book a room.
Revenue managers need to focus on revenue generation. Upselling, cross-selling, total revenue management, new revenue streams should be part of the business strategy. Customization and personalization have to be at the core of revenue generation strategies.
Hotels should focus on forward-looking data, value, and customer journey. To stay ahead of the curve, hotels need real-time market demand data. Predictive market intelligence solutions that aggregate data across different sources (OTAs, GDSs, flights, alternative lodging, meta-review sites, etc.