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Wes Anderson Regional Director Revenue Management, North America InterContinental Hotels

Wes Anderson Regional Director Revenue Management, North America InterContinental Hotels. The New Revenue Management Linkages to Marketing/Sales Questions. Caribbean Hotel & Tourism Association Agenda. Price Optimization Optimize Channels of Distribution Optimal Business Mix & Yielding

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Wes Anderson Regional Director Revenue Management, North America InterContinental Hotels

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  1. Wes AndersonRegional Director Revenue Management, North AmericaInterContinental Hotels

  2. The New Revenue Management Linkages to Marketing/Sales Questions Caribbean Hotel & Tourism Association Agenda

  3. Price Optimization Optimize Channels of Distribution Optimal Business Mix & Yielding Product Class Opportunity Revenue Management Fundamentals

  4. Data Consolidation and Analysis Strategy Development and Buy-in Tactical Application Measure Success (via Data Consolidation and Analysis) Revenue Management Methodology

  5. Consumer Based Pricing Model Competitive Based Pricing Model Niche Pricing Model Margin Based Pricing Model Revenue Management FundamentalsPrice Optimization

  6. Pricing Elasticity of Demand When markets are elastic, lower rates When markets are inelastic, raise rates Consumer Based Pricing Model

  7. Peg rates off of competitor’s rates Assumes you are not the market leader Risk of “Greater Fool” effect Use a rate shopping service to ensure no anti-trust infringement Competitor Based Pricing Model

  8. You’ve got to pay my rates to keep the company I’m offering at my hotels… -Isadore Sharp, Founder of Four Seasons Hotels Risk of occupancy depletion in Elastic Markets Requires clear marketing message or positioning Niche Pricing Model

  9. Fluctuates by Supply and Demand Assumes minimum acceptable profit level Works for mid market and luxury hotels Margin Based Pricing Model

  10. Its about Discovery and Persuasion Optimizing Channels of Distribution

  11. Demand is inherent in channels Optimizing Channels of Distribution

  12. GDS Retail Internet (Expedia/Travelocity) Opaque (Priceline/Hotwire) Hotel Web Site Hotel Direct (Voice Reservation Services) Optimizing Channels of Distribution

  13. Discovery Marketing in the GDS Biasing shelf space placement Persuasion Content and Pricing Optimizing Channels, GDS

  14. Discovery Conversion Percentage Social Media Presence Parity Compliance / discount online forwarding Market Manager Involvement TravelAds Persuasion Content and Pricing Optimizing Channels, Retail Internet

  15. Discovery Pricing Persuasion Pricing and Content Optimizing Channels, Opaque

  16. Discovery Search Engine Optimization Organic vs. Pay Per Click Measuring Effectiveness Google Analytics Persuasion Content & Pricing Optimizing Channels, Hotel Web Site

  17. Discovery Marketing Public Relations Sales Efforts Affiliation with Associations Persuasion Well Trained Staff Staff Incentives Promotions Optimizing Channels, Hotel Direct

  18. Yielding, the root of Revenue Management Segmenting your business Business Mix / Channels of Distribution / Lead Time Optimizing Business Mix

  19. Product Class - rooms priced at different levels Goal against ADR capture of Price Differential Balanced Inventory vs. Fractured Inventory Product Class Optimization

  20. Marketing/PR generates Demand Revenue Management manipulates Demand Linkages Between Revenue Management and Marketing

  21. Social Media Responsibilities Incoming (Trip Advisor) vs. Outgoing (Facebook) Marketing owns Facebook/Twitter Linkages Between Revenue Management and Marketing

  22. Marketing owns Facebook / Twitter, etc Revenue Management prices offers Outgoing Social Media

  23. PR or Departments owns review response Revenue Management owns increasing review volume (Optimizing Channels) Incoming Social Media

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