Session 3 Webminar

MARIE BOUQUIN MBA 2B

Review Pro

10 000 clients all around the world such as ….

Review Pro

They help to manage the reputation of their clients with revenue management and global review index.

Cornell university conducted a study in partnership with Review Pro and STR.

Result on study : the performance of a hotel has a link with its online reputation.

History of Revenue Management

Begin with airlines companies in 1980 Used ten years later by hospitality industry.

What are the conditions ?

Customers willing to pay different price for the same product.

To have perishable inventory. Fixed resources to sell.

New challenges !

Channel proliferation. Dozens of distribution channels.

New metrics to benchmark performance

Jason Lewis (Vice president of sales EMEA) « Hospitality industry has to understand customer purchase journey ».

Dream + Search + Book + Stay

What kind of commodity there is around the hotel ? What kind of neighborhood customers are looking for ?

How hoteliers increase direct bookings?

Is there a balance strive for between OTA and direct bookings ?

Yes like : Incentives if customer book directly on website like 20% of

discount. To hire russian employee to attract russian market. Hotel need to do to adapt to this trend ? Google hotel finder / Trip advisor / Kayak / Trivago. Site minder changes the worl of distribution help to increase

your online distribution and maximise revenue.

Evolution of the role of revenue manager ?

Chedi Farhat « Vice president revenue management & distribution of Morgan hotel group ».

« Greatest enemy to human potential is your confort zone ».

Revenue manager is the creator of the demand focus on profitability.

Pirocing is not the only thing important.

Reputation is also very important to loyal the guest

Don’t treat your customer equally.

Better way to measure ?

occ X average rate / hotel rooms – costs of acquisition. Benchmark your ADR occupency RevPar and reputation

performance compared to your direct competitive set to identify operatioal areas for action to maximise revenue.

Review Pro has partenered with Ideas revenue solutions this module provides hotel revenue managements with fully automated pricing recommendations based on hotel’s reputation within its competitive set.

Key Takeways

1. Keep up with trends and focus on big pictures.

2. Utilize tools to optimize your positioning and make more informed decisions.

3. When assessing performance take into account costs of acquisition.

4. Focus on brand distinction vs commodatization what makes your hotel more desirable / worth more ?

5. Don’t forget the traveler ! Audit rate positioning from the traveler’s perspective.