Does your left hand know what your right hand is doing?
If you’re running a hotel or resort and your revenue manager isn’t sharing information with your marketer, you may not be making the most of all the data you have available.
Whether they know it or not, your revenue manager is sitting on valuable information that can inform your marketing efforts. In his article over on HospitalityNet.org, Nick Curcuru reveals that when a hotel’s revenue manager and marketer partner up, they can expect to see a 6% increase in revenue, as well as improved market share, and greater demand during low seasons.
So, what information can your revenue manager offer your marketing department?
Your marketer may already have access to similar information. The secret sauce your revenue manager has—and your marketer needs—is data that’s more accurate and up-to-the-minute. These data sets straight from the revenue manager’s desk will ensure your marketer’s campaigns are timelier and more impactful.
Armed with the following data, your marketer will be as precise as a surgeon—and as profitable.
You already know the importance of having a detailed demand forecast. A hotel’s success hinges on the accuracy of this report, making it a robust tool for marketing. It will help your marketer zero in on slow periods to create timely campaigns that will reduce your number of unoccupied rooms during dips in business.
Plus, the best demand forecasts will also provide insight into total revenue streams, rather than revenue generated only from rooms. A detailed forecast can also help you understand who your guests are, where they’re from, and their preferences. These metrics offer a starting point for personalizing your hotel services for your guests.
Greater transparency between your revenue manager and marketer around pricing strategy will allow your marketer to create more targeted campaigns. Most hotels use dynamic pricing to inflate or reduce their pricing depending on market conditions. This strategy helps you narrow in on the highest price travelers are willing to pay.
Access to pricing strategy data empowers marketing to quickly create offers and promotions set at price points that are most profitable for the hotel. And you can rest assured that your hotel is always getting the maximum revenue.
Another great metric for your marketer to keep an eye on is current and historical booking pace. By analyzing booking pace in conjunction with your demand forecast and data on lead time, your revenue manager can determine what booking patterns are a cause for alarm.
Keeping your marketer in the loop allows them to put a choke on marketing efforts—or be more aggressive— when appropriate. This will help trim your marketing budget and ensure you get more from your budget spend.
Some booking pace reports allow you to get granular and look at booking pace by channel or source market. This information will be invaluable to your marketer, who can zero in on what tactics will be most effective for each channel and niche market.
Competitive Set Information
All marketers need to size up the competition. In other industries, marketers must build their own reports and hope they’re research is up-to-date and accurate.
But in the hospitality industry, Competitive Set data is part of your bread and butter. You’re fortunate enough to have access to highly focused and accurate data, courtesy of your revenue manager.
Make this data do double-duty. Allow your marketer to leverage the Competitive Set information. Your marketer will use this information for their own in-depth competitor analysis. But with the Competitive Set data, your marketer will be more precise.
From check-in to room service, right down to the roll of Mentos your guest purchases in your convenience mart—every purchase matters. Giving your marketer access to transactional data allows them to better predict the needs and desires of your guests and create more targeted campaigns.
Plus, marketers to have to sing for their supper.
In other words, they must prove their effectiveness. In today’s data-driven world, vanity metrics don’t leave an impression. Marketers must be able to prove their worth by showing real financial value.
Transactional data allows marketers to better demonstrate where they’re adding value.
Maintaining an open line of communication between your revenue manager and marketer will ensure your marketer has the most up-to-date and thorough data available. With all this data your hotel’s marketing efforts will deliver the greatest returns.
Want to learn about another secret tool that will improve your brand perception, increase customer satisfaction, and increase your hotel’s revenue? Check out this video to learn how we can help. And if you found this blog post helpful, spread the word by emailing it to a friend, or sharing it on Facebook, LinkedIn or Twitter.