Revenue Management
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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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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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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…
