The new normal requires new approaches. Hoteliers that can adapt their business strategies will win the market share. The hotel demand is coming back, but what has changed, and how to maximize revenue in a post-pandemic world? The booking window The booking window became shorter, and hoteliers have less time to react to changes in demand.
Due to the pandemic, many hotels adopted cost-saving strategies, and the hospitality job market became highly competitive for certain positions. Revenue management is one of them. More and more hotels can no longer afford a dedicated on-property revenue manager.
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.