Considering the unprecedented global travel disruption and performance declines we've endured; hoteliers finally have something to look forward to. The world has spent the last 18 months dreaming about travel, but not actually going anywhere. Increasing vaccination rates combined with relaxed travel restrictions are bringing travel back… with a vengeance. Most agree that the worst is behind us.

But so far, this pent-up demand or "revenge" travel is different. Driven almost entirely by domestic leisure demand, the patterns have changed. Some premium locations are already exceeding 2019 pre-COVID levels, while hotels just a few blocks away are still struggling. Hotels that targeted the corporate, international, or group segments are reinventing themselves, with mixed success.

Considering the unique nature of the recovery, what should hoteliers do to optimize and manage COVID's pent-up demand?

Cendyn

This World Panel Viewpoint is sponsored by Cendyn™
More information

Christoph Hütter
Christoph Hütter
Non-traditional Revenue Manager & Consultant

In the past, revenue management was referred to as "the art of turning away business". This definition became somewhat obsolete during times when there was no business to turn away.

Instead, revenue management became "the art of uncovering opportunity".

As such, hotels have to learn how to uncover opportunities.

We need to look much closer at where we can generate revenue throughout the entire guest journey. Oftentimes these will be micro opportunities. 

Upselling and cross-selling are some of the most effective and fastest actions to implement and improve upon.

Instead of an exclusive focus on room revenue, we need to look at total (net) revenue. How can we optimize the entire existing space at the hotel? Where can we generate revenue in areas that we have not tapped into previously?

Technology will help us uncover opportunities by helping us better understand the data we already have. A business intelligence tool is a must in today's world.

We also need to re-evaluate our processes and improve efficiencies. We need to generate a competitive advantage by working smarter and offering a better guest experience than our competition.

These are obviously extremely tough times. But there is opportunity. We just have to uncover it.

View all 20 views in this viewpoint


Cendyn

This World Panel Viewpoint is sponsored by Cendyn™
More information