Work That Budget: Discover 3 Ways to Generate More Revenue from Current Demand!
RevPAR looks strong for the next few years, especially for independent hotels–that’s
the good word from the 2014 Hotel Data Conference, August 12-14 in Nashville.
Read on to find out how to ride that trend and beat your budget season blues.
Want to end your summer season on a high note…and get your budget planning off to a good start?
Savor this prediction from the 2014 Hotel Data Conference: RevPAR growth will continue over the next 36-48 months, primarily led by ADR. Occupancy will also be strong.
What better encouragement as you crunch the numbers for your 2015 budget? But there is a catch. To paraphrase Dan Hansen, President and CEO of Summit Hotel Properties, you have to have swagger if you want to drive rates.
Why? Because group pace may soften a bit. If it does, nervous revenue managers might be tempted to soften transient rates to protect occupancy. To sustain RevPAR growth, management needs the confidence to continue to drive transient rates.
If you arm yourself with real-time transient demand data, you can confidently “swagger” right past rate panic. Not only that, you’ll be able to generate a stronger direct revenue stream right when your competitors start to fade!
Make your mantra “knowledge is power” and take advantage of…
3 Ways to Generate More Revenue from Current Demand
1) Think more marketing spend is the only way to drive revenue? Think again
Did you know that you actually have about three times more demand through your voice channel compared to your online bookings on the transient side?
Before you draw up a bigger marketing budget, grab the business that’s already coming in. Assess your reservations team performance and circle back to those NAVIS 7 Non-Negotiables for any trouble-shooting.
2) Capture 100% of your demand data
Let’s say your inbound transient call conversion rate is 30%. That means 70% of the people who contact you are not booking. You’ve already spent the marketing dollars to attract their call. Now find out who they are and what they want. Capture their name, phone number, email address and the clues that could turn them into guests in the future. Did they decline to book because of price? Minimum stay requirement? Lack of available rooms?
NAVIS Narrowcast technologies, backed by our hands-on Client Consulting Team, can boost your inbound call conversion to 40%, 50%, or higher. By employing an outbound direct sales strategy with the new data you are now capturing, you can convert another 10%-20% on top of that (see chart below). NAVIS helps you book significantly more guests from your existing demand.
3) Track how much of your digital marketing results in direct business – especially direct phone business
More people than ever are conducting their travel research on mobile devices and tablets, and that number continues to grow.
Did you know that those mobile researchers generally call your reservation team when it comes time to book?
NAVIS allows you to accurately measure your on- and offline-bookings to ensure your precious marketing dollars are being spent where they’re most likely to reach your potential guests.
THE “POWER-OF-CONVERSION” CALCULATOR
How much additional direct revenue can NAVIS generate for your property? A $7 to $10 annual increase in RevPAR is typical. Run your own revenue growth with our online calculator and have a happy budget season.
Stay tuned in coming months as NAVIS adds cool new tools to enhance your direct revenue.
Michelle Marquis, NAVIS VP Marketing and Strategic Initiatives