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Revenue Management for Small &Independent Hotels

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Spotlight on Revenue Managementfor Small & Independent Hotels

1) Unique challenges?2) Suitable Revenue Management technology?

3) Build guest loyalty with a rational pricingstrategy?

4) Increase revenues when you've got highoccupancy rates?

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1. What are the unique challenges posed by smalland independent hotels?

A. Absence of Brand Namea) Weaker Distribution Networkb) Inability to position the property globallyc) No Loyalty Program

B. Challenge to promote own Website & capturemarket share

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Expose the property globally

• Join hands & develop relationship with keysuppliers to market your property and

generate demand – Tour Operators has strong presence in

specific markets

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Alternate to Loyalty Program

• Attract customers throughincentives as a substituteof points…( Cash Back !!!)

• Unique experience and

not cookie cutter brandexperience• Capture e-mail through all

sources on guest bookingand inter-actions – e-mailmarketing

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Website Awareness to Capture MarketShare

• Design and Develop a High-ConversionWebsite

• Maximize Free Traffic from Search Engines• Protect Your Brand Name• Capture New Demand in Paid Search•

Partner Strategically with Other Websites• Keep Consumers Engaged Via E-mail

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Step A : Develop a High- Conversion Website

Prominent PromotionalSection

Large Image Space

Easy To UseNavigation

Strong Calls toAction

The design should beimage- rich and fitthe style of your hotel

Prominent calls toaction are imperative

- reservation links,special offers andshort-timepromotions should behighlighted

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Step C : Protect Your Brand Name

Third Parties will bid onyour brand name inpaid search -independent hotelsmust spendaggressively in thisarena to protectagainst channelcannibalization

Ad copy should conveya best rate guarantee &compelling offers tokeep loyal guests off of 3 rd party sites

Monitor your reviewson user-generated

content sites andrespond frequently

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Step D : Capture New Demand in Paid Search

Complement Organic Search by offeringtimely special offers rate specials to attractdemand

Track all activity so that money is only spenton campaigns that work and the best

converting offers become most often promoted

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Step E: Partner Strategically With Local & National Travel Sites

Partner with websitesthat attract your targettraveler to drive trafficdirectly back to yourwebsite

Partner with local,

national and regionaltravel sites

Partner with demanddrivers like attractions,universities and

partnerships

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Step F: Keep Users Engaged With E-Mail

Once a traveler has visitedyour website or stayed atyour property, the best wayto keep them engaged withyour website is via e-mail marketing

Tailored offers bysegmenting your guests

Respect subscribers bystaying within CAN-SPAM

laws and only reaching outwith compelling offers toavoid high “unsubscribe”rates

Keep e-mail design and

tone consistent withwebsite and other marketing

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3. What revenue management technology issuitable and affordable for your business?

Typically the software’s available off the shelf are expensive,too elaborate in data collection and complicated to workwith

What we should look for?• Easy• Simple upload• Quick snap shots & reports• Generate trends• Easy to extract output

• Not expensive

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4. How can small and independent hotels buildguest loyalty with a rational pricing strategy?

• Rate parity• Offer options at different price points• Travel agent incentives

• Reward and appreciation of repeat guest• Monitor guest reviews and respond frequently• Clearly communicating the price in booking process• Ease of booking

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• Premiums on room types• Control contracted rates• Prevent over-booking of lower room types

and promote higher room types

5…contd… How do you increase revenues whenyou've got high occupancy rates?