The increase in reviews online fundamentally has changed travelers’ path to purchase, and it’ll stand to reason that approaches to revenue management also must adapt.
It’s no longer something just managed by the guest relations desk, as reviews will directly affect revenue.
Let us take a closer look.
Is your hotel value for money?
In essence, amongst the main jobs of revenue management includes charging as much as they can for a room. Utilizing both reputation and rate tools, a hotelier easily can contextualize the connection between a guest point of view for value for money for that group or hotel, and the actual hotel rate in order to maximize revenue.
Consider the following: if a hotel service and product isn’t up to par, a revenue manager can’t maximize the room rates; the value for money isn’t being generated. If the revenue manager looks at feedback from the guests and uses that to improve service, help operations, or plan around rooms that are out of order for repairs, value for money offering is going to be maintained and room rates may be maximized again. It’s important that operations and revenue managers work very together in order to maximize overall service offerings.
Are revenue generators doing as well as they should be?
Observing guest ratings upon revenue generating industries of the hotel, such as the curio shop, spa, or bar, instantly pinpoints areas in which improvements may be made to produce a greater return for those services.
By assessing the guest ratings upon your revenue generators, it’s possible to rapidly see where improvements might earn you more within the long-term.
How will your value compare to the competition?
Understanding how your hotel is doing against the competition may offer valuable intel while juggling rates – particularly as viewed in correlation to value for money. All of a sudden, an extremely comprehensive picture may be drawn to assist in better pricing your hotel within your market—that is relative to how travelers are rating your hotel, as well as the competition online.
If the average review score you have is higher than that of the competition at similarly-priced hotels, as well as your value for money is rated consistently high, your rates often can be increased without a drop in occupancy numbers.
Your GEI (Guest Experience Index) is amongst your most crucial indicators while benchmarking yourself against the competition.
If you don’t feel comfortable boosting your rates outright, attempt this simplistic experiment – raise your room rates by a tiny margin at properties that have superior reviews. If you don’t see any difference in occupancy numbers, increase your rate by a tiny amount again, until you see a dip in occupancy.
Similarly, a corresponding dip in perceived value for money is going to tell you that you must upgrade if you wish to remain inside this price bracket.
For more information on reputation reporting contact Soaring Away at (910) 471-5030.