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?

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Michail Tzouvelekis
Michail Tzouvelekis
Director of Global Marketing, Fornova

Hotels that have a clear and effective revenue strategy for the post-Covid world will be in the strongest position to capitalize on any influx of leisure travelers once recovery takes hold in their country or region. There are several areas hotels must consider.

Have the right tech stack 

Having the right information at the right time and in the right hands of your revenue, distribution, and marketing teams is critical. Having siloed or outdated tools can lose you critical time and lead to the wrong decisions being made.

Hotels must be able to track in real-time their distribution health in order to be able to optimize the most effective channels – driving direct sales wherever possible and protecting their rate parity. With the fluidity of feeder markets revenue managers must constantly ensure their room rates are competitive not only against the local comp set but within their key feeder markets too. A competitive intelligence tool should therefore be able to track Point of Sales across multiple regions. Upselling and attracting returning visitors will also be essential components so an e-commerce platform that tracks, segments, and drives e-commerce activity is central to effective revenue management.

Today, these central tools can all be part of a single hub in the cloud allowing teams to manage performance all from the same platform.

Build a smart partnership with OTAs

As we predicted last year, the larger online travel agencies (OTAs) are growing fast – both in size and influence. Hotels need to find the right balance between making the most of their reach and their tools to attract guests in regions where their brand presence is much weaker while also competing effectively on their home turf.

Ensuring hotels make the most of OTA tools, such as booking.com's visibility booster, is just part of the picture, they must also continually be protecting their rate parity to secure the best possible position on the organic search results.

It is difficult to overstate the importance of rate parity in the current market. Not only is it central to protecting visibility and the relationship with the OTA but with the universal free cancellation policy having created a culture where double booking has become the norm, inconsistencies with rate parity increase the likelihood of guests canceling their direct booking in favor of the rate on the OTA.

And, it's not just a question of going head-to-head with the OTAs in the drive-to markets, hotels need to be smarter about where they focus their efforts, ensuring they have got the most competitive rates on the days where demand is at its highest.

In addition to the OTA tools, Google has also upped its stakes in the hospitality sector releasing several new tools to support hotels to capture demand and optimize revenue such as its Pay Per Stay option which sees hotels only pay fees once the guest has checked in.

Add memorable experiences

Securing a room booking should be just the start of the journey to optimize revenue. Creating experiences based on the hotel's location and services. It is an opportunity to cross-sell. For example, some rural locations have enjoyed higher levels of occupancy than before the pandemic. With travelers keen to treat themselves there are opportunities to increase food and beverage sales and other services such as spa treatments, guided excursions with partners or other in-room services. 

For city hotels, affordable packages combining competitive rooms rates and entry to top venues and theatres may entice regional visitors to return.

Up-to-date and accurate guest information is required to drive these marketing and revenue-building activities.  

Update hotel listings

One of the easiest, if time-consuming, ways to drive revenue is by ensuring listings across all directories and channels are complete and consistent. In the rush to get away, potential guests are searching online in detail. Hotels must have all their information up to date including all amenities, services such as restaurants and gyms, health and cleaning policies, location, and photos. New hospitality specific solutions can now automate these updates on behalf of hotels.

The hospitality industry faces a rocky time ahead but it is clear that in those countries where travel restrictions are being eased there is a significant proportion of the population keen to travel. Hotels who combine data insights with targeted distribution and marketing activity will be in the strongest position to drive revenue performance.

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This World Panel Viewpoint is sponsored by Cendyn™
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