Optimizing your Channel Profitability

Control What You Can to Improve Your Bottom Line Without Impacting Guests’ Experiences

Melissa — Tue, 06 Jan 2009 14:12:36 +0000

Your Reservations Technology is a crucial component of your marketing initiatives—but your ROI is compromised if the structure of your plan doesn’t meet your needs.

Consider this, if you are paying a percentage fee rather than a flat transaction fee, you could be paying thousands of dollars more a year than necessary for your connectivity. With a percentage fee, you are essentially paying more for the same booking simply because the guest has chosen a longer stay.

Does a transaction fee structure make sense for your property? We can provide you with a complimentary analysis of your particular property that can determine if a percentage program makes sense for your ROI—or if you are wasting your budget at a time when every dollar counts.

Contact Sceptre Vice President Mona Ingram today for your complimentary analysis. In the coming year, no expense should be left unexamined.

NEXT IN OUR SERIES — ACT NOW TO MITIGATE A CHALLENGING 2009 PART II: REVENUE GROWTH

Converting a Hotel Website Visit Into a Reservation

Melissa — Mon, 01 Dec 2008 20:30:13 +0000

Hoteliers spend far too much time—and money—on aspects of their website that don’t directly impact reservations.

Music. Animation. Extensive photo galleries. They may all have a place in the site, but ultimately they do not influence the visitor enough to hit the “make reservation now” button.

So, what does? Here are three of our must-haves for a revenue producing website:

A Rate Guarantee: Don’t let travelers leave your site to see if they can get a better rate on a third-party site. Guarantee them the rate and give them peace of mind. The rate you choose should be part of a comprehensive electronic channel strategy—just picking a number won’t help your RevPAR or your branding.

Real Time Room Availability: Clients should be able to reserve a room from your available inventory without any surprises. Your site should be every bit as dependable as a third-party site—perhaps more so.

Navigational Ease: Complicated websites that shift visitors from page to page in search of key information create frustration and, ultimately, lead the visitor to exit in search of a friendlier site. There is a science and an art to the navigation of a website—utilize both to help visitors reach the reservation page.

Contact us today and we’ll provide you with a complimentary review of your website—what works, and what doesn’t. If you don’t have a website, we’ll be happy to talk you through the process and discuss whether it makes sense for your property.

The Year Ahead Demands Strategic Action

Melissa — Fri, 24 Oct 2008 19:53:40 +0000

Change can be intimidating, particularly when it involves your connectivity to travelers and travel agents. But moving on from a business relationship that is not helping your business to grow can be positive and open new doors.

But how do you know when your connectivity firm is providing substandard service and results? There are a few questions that can provide insight:

Does my current firm provide the technology, but never really help me optimize the plan to grow my business?
Does my account contact understand my objectives and help me with strategies to reach those objectives?
Do they interact with me frequently and identify revenue opportunities I can capitalize on?

Making a change in your property’s connectivity partner may be unsettling—but if that firm is not a true partner, the alternative is much worse.

If you would like to speak with some of the 300 independent hoteliers we have helped, please contact Gary Farnon at (303) 220-2117.

NEVER Underestimate the Importance of Market Intelligence

Melissa — Thu, 16 Oct 2008 16:22:19 +0000

Today’s independent hoteliers cannot grow their businesses by following trends—they need to anticipate the road ahead and react with the speed of their competitors. Fully understanding the market, traveler demographics and competitor plans gives shape to a marketing strategy that increases RevPAR and occupancy.

Can you answer these key market intelligence questions:

What are the best practices for independent hoteliers nationwide, and how many has your property implemented?
Do you know the corporate directives to the chain and brand hotels in your market and how they will affect your property?
Do you have a comprehensive understanding of your property’s performance and the percentage of rooms that should be allocated to specialized marketing initiatives such as Expedia?
If you’ve dropped your rates because of current market conditions, do you have an objective report that supports this strategy—or are you just racing to the bottom with your competitors?
Do you have the staff to even begin addressing these questions?

Sceptre specializes in in-depth, comprehensive market intelligence for our clients. As a partner in your growth, we translate the national and local trends for you—so you know how to react and when to follow a different path than your competitors.

For more information on how we can make your property more competitive and more profitable, contact Gary Farnon at (303) 220-2117 or e-mail us today.

Third-Party Web Site Strategies Can Help You Market Your Site Directly

Melissa — Tue, 30 Sep 2008 19:31:23 +0000

One of the many advantages to having dedicated professionals continually reviewing the third-party web sites is that we can successfully utilize our knowledge of their marketing programs and advanced technology to gather the underlying data behind third-party web site pricing and marketing strategies.

Simply put, we can take third-party web site research and market analysis and put it to work on your web site. Keep in mind that when you can sell rooms on your own site, you are better able to control rate strategy, your marketing presence—and the amount you have to discount when the room is booked through a travel site.

If you feel you cannot perform without third-party travel sites, call us today. We’ll happily walk you through how increased web site traffic for other independent hoteliers and how we can make the difference to your bottom line as well.

Mona Ingram, Vice President | e-mail: mingram@esceptre.com | phone: 303.220.2110

Goals First—Budget Second

Melissa — Tue, 09 Sep 2008 19:45:51 +0000

When we speak to hoteliers across the country, we find that nearly all skip the first and most important part of the budget process—setting goals. Generally, hoteliers decide on a budget number, then they adjust their goals to the budget. This is a shortsighted method for mapping out a marketing strategy, particularly in a market where hotels, branded and independent alike, will be fighting for each reservation.

We recommend setting goals and then adjusting your marketing dollars to reach key metrics. Goals may include:

Reducing booking fees by driving more guests to your web site
Utilizing third-party on-line travel sites marketing to further your sales, not necessarily theirs
Establishing a “creative fund” whereby you set aside a certain number of dollars to take advantage of unforeseen opportunities, especially new programs from on-line agencies or GDSs capitalizing on the market shifts

Sceptre can help you set and reach your marketing goals. Our nationwide market intelligence provides insight, and our relationships provide opportunity. To learn how we can be a true partner in your success, contact Sceptre Vice President Mona Ingram today.

Your Questions On Consortia Answered…

Melissa — Fri, 29 Aug 2008 16:40:40 +0000

Q. The majority of my guests are leisure travelers, should I still care about consortia?
A. While it’s true that consortia appeals most strongly to the corporate traveler, there is a significant percentage that is leisure. Keep in mind that the majority of corporate travelers turn to the same travel agent for leisure—and, with consortia, your property is top-of-mind.

Q. Wouldn’t it be easier to just make presentations to travel agents?
A. Back in the day, that might have made sense. But, today, many travel agents are home-based or generally just out of the office. Additionally, travel agents need to make recommendations quickly and probably will have neither the time nor the inclination to dig out a leave-behind. Better to reach them at the first click for their client.

Q. Doesn’t the GDS just do the same thing?
A. No. With an upgraded consortia marketing initiative, you are able to highlight your value-adds which can make your rate that much more attractive. For example, you might offer complimentary dinner or breakfast.

Q. So, if I just join in on the basic consortia package, I’m all set?
A. The ability to market through consortia is powerful and we always recommend that our clients explore the full range of opportunities – some that you may never have considered. We also provide a thorough follow-up with consortia that details the percentage of clients that came from this venue so you can better evaluate your ROI.

Q. How can my independent property possibly compete with branded hotels in consortia?
A. For the independent hotelier, this is the true value of consortia. Properly positioned and marketed, consortia levels the playing field and can provide the same exposure that the brands enjoy.

For more information on consortia and whether it makes sense for your property, please contact Sceptre Vice President Mona Ingram.

The Five Capabilities Your Website Must Have

Melissa — Wed, 13 Aug 2008 19:57:58 +0000

Inventory Availability and Real-Time Reservations
Travelers, both business and leisure, want to know what rooms are available and at what price. They want to make their reservations immediately based on the information supplied. Give them the run-around and they’ll just run away.

Consistently Updated Pricing Based on Market Intelligence
Price shopping online has never been easier and that makes pricing more complex for hoteliers. Price your rooms too low and you short-change your bottom line. Price your rooms too high and you’ll lose reservations. But who has time to consistently monitor market conditions and pricing? We do.

Aesthetic Presentation
For all the technological marvels that may underlie a website’s design, it will inevitably be judged first by how it looks. Undeniably, there is an emotional component to selecting a hotel for many travelers — if not, they would probably not consider an independent property but simply head to the nearest branded hotel. Your website will give travelers their first glimpse into your property… make certain it’s a mirror that accurately depicts your property’s offerings.

It’s More Than Just Booking Rooms
Websites can, and should, do more than simply book rooms. Internet booking engines (IBE), also allow guests to research multiple trip itineraries, review room rates and package values, as well as secure group and corporate rates. Effective IBEs should also allow hotels to sell ancillary services such as dining options, spa services or resort services through dynamic packaging. The ability of the IBE to support these components while maintaining a user friendly three- to four- step booking approach and secured personal information is crucial.

But How Do You Know It’s Working?
Simply launching a website with booking capabilities is not enough. Websites require continual monitoring. Analyzing where visitors go on the site, where they drop-off and how long they stay on the site is crucial to fine tuning the content and design to optimize the return on investment. These statistics provide valuable insight into how user-friendly the site is to navigate and whether the copy and the design are engaging.

A website can only drive bookings if travelers actually visit the site. There are strategies, aside from pay-per-click, by which websites can move up in search listings. These constantly evolving strategies involve both content and programming. Effectively maintaining and optimizing a website is every bit as complex as it sounds, but the return on investment is substantial and sets the stage for long-term results.

Can we talk about your particular website? Absolutely. Contact Mona Ingram, Sceptre Hospitality Resources Vice President, for an overview of your site and how we increase its effectiveness.

Key Considerations in Rate Management for Electronic Channels:

Melissa — Wed, 02 Jul 2008 18:50:43 +0000

The Obvious Way is Not Always the Best Way
Hotels first think to raise their rate to achieve higher ADR. However, a shift of, for example, 10 percent volume from one channel to a more lucrative channel may provide a higher revenue boost than a simple across-the-board rate increase. There are ways to grow the bottom line without increasing prices.

Understand Your Market
It is not simply about haphazardly raising or lowering your rates. It is about defining the acceptable price point in your market for your product. Know your competitors—but don’t be ruled by their rates.

Look at the Big Picture
Do not become fixated on any one specific individual target market at the expense of an optimal mix. Consider the influence of Transient, Leisure and Group bookings in your channel management strategies. Establish clear and measurable short- and long-term goals for each.

Keep Your Eye on the Ball—Profit
Lowering your rates in a channel with a higher profit margin—like your website where you don’t have to pay third party fees—may seem counterintuitive, but it could result in greater bookings through channels that don’t take a percentage. Result? Greater profit.

Rate management differs from one channel to the other, from one market to the next. Contact Sceptre Vice President Mona Ingram today to discuss how strategic rate management can make a difference to your bottom line.

Independent Properties in a Branded Industry: The Ten Strategies to Compete

Melissa — Mon, 02 Jun 2008 15:44:43 +0000

Utilize the GDS to its fullest advantage by ensuring that your property is positioned before travel agents in the best possible light—and with full knowledge of how your competitors are positioned.

Implement strategies to enhance your ROI on third-party websites. The branded properties are better able to control their rates on these sites—you may be able to as well.

Don’t race to the bottom on your rates. Cornell University research has shown that when marketing on low rates alone, a property’s overall profitability does not necessarily increase with occupancy. Market intelligence, updated constantly, is key.

Your website must have the five key ingredients guests look for before making reservations. You have, on average, 45-60 seconds to secure their interest online before they move on to the next site.

In an era of immediacy, an unanswered phone or voicemail prompts guests to look elsewhere for their reservation. There are inexpensive alternatives for this dilemma.

Don’t treat your online booking tool as a way to simply move a commodity, but rather as an opportunity to create an experience for your guest complete with packages to enhance the stay.

Don’t underestimate the power of social networking online. Utilize these tools to enhance your branding online—and pay close attention to what your guests are saying to other travelers about your property.

Independent properties can utilize CRM to help track and retain customers. Hoteliers should target customers that are booking on the more expensive merchant programs and entice them with equal or better rates to book direct.

As an independent, you must aggressively market your property and follow the 4 percent revenue rule to ensure your property is not only in front of existing customers, but also drawing new travelers. When competing for guests in a difficult environment, your call to action must be compelling.

The Internet touches 70 percent of your customers at some point during their reservation decision and this highly competitive marketing channel is constantly changing and evolving. Your internet marketing plan and comp set internet marketing analysis must be organic—revisited and revised regularly to ensure that it reflects current market conditions and property goals.