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GMs/Revenue leaders, here are some key questions to ask your Distribution/E-Commerce Manager.
Nowadays, most hotels generate 60-80% of their revenue through online channels. It is critical for all relevant team members to cover all bases.➡️ What online channel grew the most in the last 30 days, and why?➡️ What are our conversion rates on the top three OTAs, and what factors are driving their growth/decrease/stagnation?➡️ What has been the most successful promotional campaign/offer in the last 30 days, and why?➡️ What key trends have you noticed in the last three months, such as ADR changes, guest nationality movement, and channel shifts?➡️ What do you want the Revenue Manager/Director to do to help you improve your numbers?➡️ What assistance and resources do you…
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How do you deal with third-party rates on OTAs?
Most OTAs do not want to give anyone else a pricing advantage. According to their data, it is the most important decision factor. They will pull rates from third parties to make the smallest of margins because accepting one more booking has practically zero additional cost. The hotels can either face them head-on or choose to ignore them. The tactics listed below are ordered from most effective to least effective. Completely discontinue the issuance of wholesale contracts. Only sell dynamic rates, whether through OTA or bed banks. Limit allotments to wholesale partners, including bed banks, to reduce the proportion. Fight with OTAs to cut off third-party inventory. Restriction on wholesale…
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Five times, promotions on OTAs are working against your property
Most hotels feel like they have to offer deals on OTAs. It is critical to be strategic with these. The promotions are bad for your hotel when No incremental revenue - your overall revenue from that OTA remains flat Revenue disappears when promotion is turned off - you gain no additional momentum. Guests are more difficult to convert to direct channel - you are attracting die-hard OTA customers. Better ROI elsewhere - additional promotion distribution costs are higher than with other OTAs or direct channels. Forgot a long-term promotion - forgotten promotions (on extranets) are often the cause of rate parity problems. I've always said that pricing is more important…
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What do the best E-Commerce/Distribution Managers have in common?
Over the last 15 years, I've had the pleasure of interviewing, training, and mentoring dozens of E-Commerce/Distribution Managers. The best of the best all had these qualities in common.✅ They understand their annual targets and keep track of them by breaking them down into quarterly, monthly, weekly, and daily objectives. ✅ They raise issues such as pricing, conversion rates, parity, price difference with wholesale, and segment shift during revenue and other meetings. ✅ Based on performance data, they constantly tweak their packages, offers, add-ons, and upsell items. ✅ They keep in touch with the market managers of OTAs, but they also know what they can't do.✅ They understand how algorithms affect page views,…
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The ten things I will never understand about hotel budget practices
Being in the digital transformation business, having an outsider perspective on the hospitality industry I serve has always helped me. That's why I don't understand the following.🤔 Regardless of the opportunities or pitfalls in the coming year, the previous year remains a benchmark.🤔 After the initial submission, owners or corporate/regional offices always want more revenue.🤔 GMs are aware of this and will submit a version with a buffer built in for the next submission.🤔 Dumping everything in the retail segment or high and peak season when there is pressure to achieve more.🤔 OTA commission costs can go over budget, but digital marketing costs cannot.🤔 Even though it can save on…
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Ten things their digital marketing team/agency wishes hotels knew
My team was in charge of digital marketing for more than 50 properties. The budget we used was in the seven figures (USD) per year. The ROI and CPA requirements were stringent. The team frequently lamented that a distribution, E-commerce, revenue manager, or general manager did not understand what it took to run a successful digital marketing campaign.It was incredible to see so many ideas, tactics, and team members come together beautifully in a perfectly choreographed delivery of amazing numbers like 20 in ROI and under 2% in CPA when it worked. When that happens, the properties know how to handle it properly.Preparation period/ optimization timeWhen it comes to guest…
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Does your hotel need an app?
For most hotels, the answer is still “No". It's time to skip, move on, and browse away!However, if you're interested in how guest behavior has changed as a result of the pandemic, what hotel apps can do these days, whether they can drive revenue, and whether they're a good fit for your property, keep reading.Let us begin with the guest behavioral changes hastened by the pandemic.They can use an app to order food from the comfort of their own homes.Shopping apps allow users to order almost any product and have it delivered to their home.They have access to any type of entertainment on demand.Most apps learn about the user and…
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My Digital Detox Journey-Part 1
Do you feel confined by your digital devices? Do you find yourself endlessly scrolling through feeds and getting lost in one app after another? Are you unable to tell whether you are enriched by your phone or is it simply draining you? Is everything a blur, whether it be work or life? Maybe there is something for you in this post. Read on. (I know. I know. The irony of someone who has built his career around digital technology talking about digital detox is not lost on me!) This subject has been talked about and written about a lot. I'm not sure I have much to say about digital wellbeing.…
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Hotels—what is your online identity?
The question of online identity sounds simple. Most hotels would put their hand up and respond by saying it is their hotel/brand website, of course. Is the answer more complex than that?Your identity Is it your website?Is it your property listing on OTAs?Is it your FB profile?Is it your IG profile?Is it your Twitter profile?Is it your TikTok profile?Is it your Youtube channel?Is it your app?Is it your (Google/Apple/Bing) Maps listing?Is it your Line app profile?Is it your WeChat profile?Is it your advertising and paid marketing?It could be one of these or all of them. However, just as your personal identity differs from that of your parents, spouse, siblings, friends, acquaintances, and…
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The Great Talent Crunch in Hospitality-Commercial Edition
Several hotel general managers have approached me for assistance with recruitment. In order of the number of requests, here are the positions they seem to be having trouble with:Revenue ManagersDistribution/ E-Commerce ManagersSocial Media ManagersMarketing ManagersCommunication and PRDigital Marketing ManagersThere are challenges elsewhere, but because I specialize in the commercial arena, the requests I get are in this area.Hiring anyone to fill vacant positions has been a challenge, let alone talent. If what is happening in the US and Europe is any guide, the talent crunch is not going to ease for a while, even in Asia. Here are some thoughts on what hotels can do to tackle the issue and still…
