http://www.hotelmarketing.com/index.php/content/article/expedia_on_how_to_grow_your_adr_without_impacting_occupancy/
Hotels industry is knows from a long time ago by lows of ADR and occupancy
however as the article explain and analyze the ADR can be increased if we do concentrate on OTA channels since hotels do sale rooms with the best available rate instead of contracted rates which are fixed and with that way of thinking they can increase rates since prices are more or less higher.
the article as well treat the problem of slow periods and here we have to be smart to anticipate need dates so hotels can use advance purchase promotions to fill their rooms further ahead as long as the dates and the rates are fixed correctly and smartly instead of waiting the last minute to pick up the occupancy
If still hotels have last minute rooms better to use opaque channels to sale safely than to decrease their prices to minimum just to book up their hotels
As well and from my previous field experience is totally correct to use add values to sale rooms than to drop rates and that very effective
We have to take in consideration that the OTA channels are the tools to sale rooms over all periods even during the peak one and it very wrong to close them on those periods with the reason of cutting distribution cost
hotel management has to stop upgrading guest for free they have to choose the right reason for that since they can use their suites to upgrade their ADR by proposing promotional offers to sale them by pushing guest to book suites than standards rooms
i think if we will implement correctly those strategy we can do effect ADR positively without decreasing occupancy
http://www.developpementdurable.com/gfx/newsArticles/zoomThumbs/090529122239.jpg
http://www.developpementdurable.com/gfx/newsArticles/zoomThumbs/090529122239.jpg
Very interesting review. By developing better planning, travel industries also develop better control on pricing, especially while getting closer to the day of booking. It seems like Guests are now very much aware of Revenue Management strategies and know how to look for the best prices...not always to the taste of Revenue Managers themselves!
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RépondreSupprimerThe fact that guests are now aware of the current hoteliers strategies, they adapt their behavior as well(human nature!)....Thus demand and the market are constantly changing, which does not facilitate revenue managers work. Both travel & hospitality industries must be continually innovative.
RépondreSupprimerI dont think that OTAs are the best way for a hotelier to sell its rooms... During all my trainings, I became aware that not only do hotels loose money by selling their rooms via OTASs because they pay high rate commissions but they can also loose control of their inventory by distibuting all their rooms. That's why they have to be set price strategies and some promotion or packages in their own website..
RépondreSupprimerThanks for your comments - descriptive of the article, needs more analysis. More work on text links please.
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