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Incorporating a New Process, System, or Tech in Hospitality
I have observed hospitality to be a very process-driven industry. For most serious hotels, SOPs on everything are sacred. If you are an outsider, it may be a little hard to appreciate the complexity. There are so many moving parts: systems, people, vendors, contractors, etc. If you have any experience running a household, just multiply it by the number of rooms a hotel has to get a feel for it. Processes have served the industry well in standardizing the quality of product and service offerings. However, when you are in the business of digitisation like me, you come in to disrupt. Introducing a new system or process is always hard.…
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Is the direct booking strategy still worth pursuing?
"Hey, business is slowly but steadily returning," a general manager said. “I don't see why I should have to invest in advertising up front. It may end up costing me more than I pay the agents."This is a common refrain, and I appreciate it. Direct is difficult for many independent hotels and small groups. If you don't know what you're doing, you could end up spending far more than it would cost to distribute through third parties.There are several reasons why hotels ignore the direct channel.CostsTalentKeeping up with the ever-changing trendsOTA dominationNo understanding of distribution costsLack of analysis and data practicesPast practices: ‘It has always been this way.’InertiaThere could be…
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Hotels, do you have the right commercial team structure post pandemic?
The extent to which the post-pandemic landscape has changed is largely determined by your vantage point. Some transformations have been dramatic and long-lasting. Others will succumb to human nature and relapse. How prevalent is mask wearing in your locality now?One thing is certain: most hotels face significant challenges in terms of hiring and retaining talent. It is critical to have an optimal team structure not only to address changes in consumer behavior but also to respond to rapidly shifting demand.My observations are as follows.Consumers have become more digitally savvy and expect connected product and service delivery.Social media usage has increased, but it has become more fragmented across generations and geographical…
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OTA Promotions-How to Decide?
OTAs generate a mountain of data. I am not talking about the visitor behavior data on their website. I am talking about what hoteliers do on their extranet. Hoteliers are enticed by the same tactics that allow OTAs to get their website visitors to click on a button, navigate to a different page, or make a booking.Discounting or participating in a campaign is as easy as clicking a button now. A constant stream of competition and market data encourages you to participate in a new campaign or keeps you there. It's no surprise that most hoteliers feel left out if they don't have one of these offers on their OTA listing. How…
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Hotel Distribution: As Simple or Complex as you Make it
A variety of factors influence hotel distribution strategies. Many people find it simple. They decide on a strategy, a plan of action, and they follow it. Their distribution system works well. It is effective.However, distribution is a nightmare for the majority of hotels. There are so many competing elements that effective management is difficult. Everything here appears to break faster than a hotel's ability to fix it. It's no surprise that most GMs and their corporate counterparts are constantly in the fire-fighting mode. This is an attempt to deconstruct the distribution strategy and then apply a complex and simple execution, but first The core: you have control over most of these.Rate structureRevenue…
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Top 5 Hotel Website Mistakes to Avoid in 2022
I do a lot of research and planning for the various trips I take. As someone who works in the hospitality industry, I always prefer to book directly. This means I visit quite a few hotel websites, usually via Google or through their social media pages. Admittedly, my recent travel has been a lot more domestic and regional due to the pandemic.As per my observation, these are the top five mistakes that hotel websites are still making in 2022.1) Missing a Call to Action:So you've taken some lovely photos and videos of your property. You want the best shots to captivate your visitors. They are absolutely amazed. What next?According to studies,…
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Hospitality’s Fear of Missing Out (FOMO) Culture
One thing I've noticed about the hospitality industry is that it is very interested in what others are doing. It is common for hotels to use a system, technology, strategy, tactic, or structure just because everyone else does it.This tendency is easily exploited by partners, agents, OTAs, and technology vendors. Vendors frequently release case studies, advertorials, and poorly disguised help pieces to entice hoteliers. The media is always eager to publicize the newest and greatest inventions. When platforms like Snapchat, TikTok, AI, augmented reality, and others first came out, they were heralded as the next big thing in the hotel industry. In Second Life, I remember that vendors built hotels…
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So Many Conferenes, So Little Time
Seminars, conferences, and vendor briefings are back. After almost three years, it is as if the floodgates have opened. I grapple with the question of attending them or allowing team members to do so. I tend to be ruthlessly picky about the conferences that I attend and the speaking engagements I accept. The general rule of thumb is that the benefits of attending should outweigh the immediate demands of my daily work. These are the decision-making strategies that work for me. Why should I attend? Will I gain any new knowledge? Is it currently pertinent? Which of my present initiatives, plans, or activities will benefit from the event? Are the attendees and speakers worth…
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The Low-Hanging Fruits: Is your hotel using these tactics to generate more revenue?
The majority of hotels in Asia are pleased with the resurgence of business. Given the scarcity of demand over the past two years, hotels are grateful for any business, regardless of the costs involved. This is a fantastic opportunity for numerous middlemen to seize control of the marketing and distribution. Chronic under-investment in technology and marketing even before the global pandemic exacerbated the situation. Now, post-COVID, most hotels do not appear to be in a hurry to change this status quo. A smart hotelier would focus on increasing the investment in new digital technologies that guests now expect. From web experience technology (website), content hub, CRM, CDP, marketing automation, a…
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Are We Still Talking about Rate Parity in 2022?
The Landscape The rate parity situation seems to be worse than before. The technology allows for IP-based or user behaviour-based pricing. An enormous amount of data, pressure to convert and competition mean a lot of coupons and unilateral discounting. Many OTAs have turned into marketplaces where rates can be sourced from third parties. Demand is shifting so quickly that most hotels are finding it difficult to balance online vs offline and short-term vs long-term rates. New players like Lazada, Shoppee, Megatix, Line and Hungryhub selling vouchers have further muddied the waters. Implications The properties serious about rate parity are playing a game of ‘Whack a Mole’. Price anchoring at a lower point adds to the downward pressure. Direct strategy and…
