Revenue Archives - Key Hotels & Resorts, Hotel Management & Marketing Company

November 2, 2023November 6, 2023

A Global Odyssey: Exploring the Differences in Hotel Booking’s Path to Purchase Across Markets

John Laclé, November 2, 2023

Introduction

The hospitality industry has evolved significantly over the past few decades, with the advent of the internet and the proliferation of online booking platforms. In today’s globalized world, travelers from different markets follow unique paths to purchase when booking hotels. Understanding these differences is crucial for hoteliers and online travel agencies to tailor their marketing and customer service strategies effectively. In this article, we’ll embark on a journey to explore the distinct paths to purchase followed by travelers in various markets.

North America: Convenience and Loyalty

In North America, the path to booking a hotel often begins with an online search using popular platforms like Expedia, Booking.com, or Airbnb. Travelers prioritize convenience, looking for user-friendly websites and mobile apps. Loyalty programs and rewards play a significant role, with many customers preferring to book with brands they are familiar with, such as Marriott or Hilton.

Europe: Direct Bookings and Personalization

Europeans, on the other hand, tend to favor direct bookings through hotel websites. They value personalization and often expect tailored offers. Hotels in Europe have been quick to adapt by offering loyalty programs and exclusive perks to attract repeat customers. Moreover, travelers in Europe are increasingly eco-conscious, preferring hotels with strong sustainability initiatives.

Asia: Mobile-First and Bargain Hunting

In Asia, mobile booking is king. Travelers rely heavily on mobile apps, especially super-apps like WeChat, Grab, and Alipay, to find and book accommodations. Bargain hunting is also a popular practice, with many travelers comparing prices on various platforms. Many Asian travelers prefer boutique hotels or unique experiences, rather than large chain hotels.

Middle East: Luxury and All-Inclusive Packages

In the Middle East, luxury and convenience are paramount. Travelers from this region often opt for all-inclusive packages that provide accommodation, transportation, and activities in one bundle. They also prefer hotels with opulent amenities and high levels of service. Direct booking and loyalty programs have gained popularity in recent years.

South America: Social Recommendations and Last-Minute Deals

South American travelers often rely on social media and recommendations from friends and family to choose hotels. They frequently make last-minute bookings, taking advantage of special deals and discounts. Flexible cancellation policies are also appreciated, as plans can change unexpectedly.

Africa: Local Online Travel Agents and In-Person Booking

In Africa, online travel agents (OTAs) that cater to the local market play a significant role. Travelers may use these OTAs to search for and compare hotels, but often prefer to book in person at the hotel or through local travel agencies. Word of mouth and personal relationships also heavily influence hotel choices.

Conclusion

The path to purchase for hotel bookings varies significantly across different markets. Understanding these regional preferences is essential for hoteliers and online travel agencies to attract and retain customers. Adapting to the unique demands of each market, such as offering personalized services, loyalty programs, mobile booking options, or all-inclusive packages, can give businesses a competitive edge. In a globalized world, a one-size-fits-all approach no longer suffices, and success in the hospitality industry demands a nuanced understanding of diverse customer journeys. So, whether you’re running a hotel or booking your next stay, consider these market-specific preferences to enhance your travel experience or optimize your business strategy.

Key Hotels and Resorts is a hotel management and marketing company servicing hotels in the Caribbean. To learn more, please visit www.keyhotelsandresorts.com.

October 7, 2023November 6, 2023

Hotels are Slow Adapters to Revenue Management Technology

In an ever-evolving hospitality industry, staying ahead of the curve is crucial for hotels seeking sustained growth and profitability. One area that continues to play a pivotal role in achieving this is revenue management. Revenue management systems (RMS) are becoming increasingly sophisticated, and hotels must adapt to these changes to remain competitive. In this blog, we’ll explore the latest trends in revenue management systems and how hotels are adapting to these trends.

A recent article from Skift, “Hotels Still Slow to Adopt Revenue Management Tech: New Skift Research,” demonstrates the slow adaption rate shown by independent non-branded hotels to RMS technologies . According to the article, less than 10% of non-branded hotels worldwide are on a Revenue Management System – proven to optimize the property’s RevPAR performance if used properly:

Data-Driven Decision Making

One of the most significant trends in revenue management is the shift towards data-driven decision-making. Hotels are now leveraging advanced analytics and artificial intelligence to analyze vast amounts of data, including historical booking data, market demand, and competitor pricing. This data-driven approach allows hotels to make more accurate pricing and inventory decisions in real-time.

Dynamic Pricing

Dynamic pricing has been a game-changer for the hospitality industry. This strategy involves adjusting room rates based on various factors such as demand, seasonality, day of the week, and even the weather. Hotels are using RMS to implement dynamic pricing, ensuring they can maximize revenue during peak periods and maintain competitiveness during low-demand periods.

Personalization

Guests today expect a personalized experience when they book a hotel room. Revenue management systems are helping hotels tailor their pricing and offers to individual guests. By analyzing guest preferences and booking history, hotels can offer personalized packages, room upgrades, and promotions, enhancing the overall guest experience and increasing revenue.

Channel Management

The distribution landscape for hotels has become increasingly complex with the rise of online travel agencies (OTAs), metasearch engines, and direct booking channels. RMSs are helping hotels manage their distribution channels more efficiently, ensuring that rooms are sold through the most profitable channels while maintaining rate parity and minimizing overbooking.

Forecasting and Predictive Analytics

Advanced forecasting and predictive analytics have become integral to revenue management. Hotels are using RMSs to accurately predict future demand, allowing them to adjust pricing and inventory accordingly. This proactive approach helps hotels capture revenue opportunities and avoid revenue loss due to underpricing or overbooking.

Competitive Intelligence

Keeping an eye on the competition is crucial in revenue management. Many RMSs offer competitive intelligence features that allow hotels to monitor the pricing and strategies of their competitors in real-time. This enables hotels to adjust their rates and promotions to stay competitive in the market.

Sustainability and Eco-Friendly Practices

Sustainability is a growing concern in the hospitality industry. Some hotels are now using RMS to optimize energy consumption and reduce waste. By offering eco-friendly packages and incentives, hotels can appeal to environmentally-conscious travelers while also improving their bottom line.

Hotel Adaptations to These Trends

To harness the power of these latest trends in revenue management systems, hotels are making several adaptations:

Training and Skill Development: Hotels are investing in training their staff to effectively use RMSs and make data-driven decisions.
Integration with Other Systems: Hotels are integrating RMSs with other hotel management systems, such as property management systems (PMS) and customer relationship management (CRM) systems, to ensure seamless operations.
Collaboration with Technology Partners: Many hotels are partnering with technology companies specializing in revenue management to stay at the forefront of industry trends.
Continuous Monitoring and Adjustments: Hotels are constantly monitoring their RMSs and making adjustments based on the insights and data they generate.

Conclusion

Key Hotels and Resorts embraces the latest tech trends in the area of Revenue Management Systems. Our hotels are leveraged with the latest RMS technologies. With KHR RMS technologies, our hotels’ hotel rates fluctuate per room type multiple times per day dependent upon several external inputs – giving them a competitive advantage compared to the majority of independent hotels not utilizing this tech trend. To learn more of our hotel marketing solutions suited for independent hotels, please contact us at info@keyhotelsandresorts.com. To learn more, please visit us at www.keyhotelsandresorts.com.

John Lacle, Managing Director

Key Hotels and Resorts

October 7, 2023

October 11, 2020October 11, 2020

Recovery Begins with Outsourced Hotel Revenue Management and Marketing Solutions

The problem is universal – Hotels with limited capital reserves and fixed overhead expenses cannot afford to reengage their revenue generating activities given the low demand in the marketplace.

The terrible impact of Covid on the hotel industry can be best observed with the exceptionally high amount of furloughed teams and hotel closings over this past year. According to the AHLA, 68% of hotels have less than half of their normal full-time staffing levels. Fixed payroll expenses and reduced capital reserves are hindering hotels’ abilities to reopen their revenue-generating activities.

PAY FOR PERFORMANCE HOTEL COMMERCIAL SERVICES

The solution comes in the form of our Pay for Performance revenue and marketing services. With this business model, hotels benefit by receiving expert revenue and marketing support services, paying a percentage only for the revenues generated by Key Hotels. The hotel does not incur fixed Sales & Marketing payroll expenses or any other general marketing expenses including promotions, digital marketing, photography, revenue management systems, etc.

MITIGATE FINANCIAL RISK

With our Pay for Performance solutions, hotels mitigate their financial risk. Should the hotel close its doors once again due to Covid, the hotel’s financial exposure would be limited to the revenues it receives. Sales Department expenses are absorbed by Key.

ELEVATE TOP-LINE HOTEL PERFORMANCE

Our hotels benefit with elevated RevPAR performance from our powerful revenue management platforms. We offer automated rate setting tools, market demand coefficients, airlift analysis, competitive rate shops, pick-up tracking, predictive demand analysis, and market segmentation & geo-targeted pricing. Complementing this technology, our expert Revenue Team offers weekly market mix performance reporting, monthly rolling forecasts, and annual budgeting & business planning.

EXPERT STRATEGIC HOTEL REVENUE MANAGEMENT

Our hotels benefit from the strategic revenue management leadership offered by our expert revenue management teams, experienced drawn from executive roles with the world’s finest hospitality companies including the Ritz-Carlton, Hilton Worldwide, and Marriott International. Our hotels benefit with elevated RevPAR performance from our powerful revenue management platforms.

We offer automated rate setting tools, market demand coefficients, airlift analysis, competitive rate shops, pick-up tracking, predictive demand analysis, and market segmentation & geo-targeted pricing. Complementing this technology, our expert Revenue Team offers weekly market mix performance reporting, monthly rolling forecasts, and annual budgeting & business planning.

ECONOMIES OF SCALE

Global Distribution – Our hotels benefit the shared revenue generating solutions provided by Key, elevating the hotel’s top-line performance. Our Team specializes in the worldwide distribution of our hotels’ rates and availability matched with professionally curated digital marketing content, sent everywhere and updated in real-time to thousands of travel accounts around the globe.

Please contact John Laclé, Managing Director for Key Hotels and Resorts for a consultation review . jlacle@keyhotelsandresorts.com.

October 7, 2020October 7, 2020

Signs of a Domestic Travel Demand Rebound

REDWOOD SHORES, Calif., July 7, 2020 /PRNewswire/ — Following a long stretch of stay-at-home orders, consumers are eager to get out and travel according to a new research study from Oracle and Skift. Just over half (51%) of people surveyed in both North and Latin America plan to book trips in the next six months, while 38% of those in Asia-Pacific and Europe are planning get-aways. People, however, are opting to stay closer to home with driving distance (47%) or domestic trips (44%) being favored. With so much uncertainty ahead, consumers are also demanding flexible cancellation and refund policies (76%) and are more open to considering hotels offering discounted rates (65%).

Consumers’ willingness to travel also comes with heavy caveats for hotels in terms of advancements in cleaning and technology. In response, 70% of hotels already are or are planning to adopt contactless technology for check-in, food ordering, concierge services and more. Ninety percent have or are planning to also increase cleaning and disinfecting frequency and training for staff on these procedures and safer guest interactions (89%).

“As the hospitality industry turns a corner on the road to recovery, technology will be critical to protecting travelers and workers alike,” said Alex Alt, senior vice president and general manager, Oracle Hospitality. “Safety rightly remains consumers’ top priority when they consider traveling, and the hospitality industry is doubling down on technology to facilitate social distancing and reduce face to face interaction for guests’ protection.”

The global study, A Data-Driven Look at Hospitality’s Recovery, explored 4,600 consumers and 1,800 hotel executives’ attitudes and outlook on travel, including changes to the guest and employee experience, booking policies and distribution, and the industry’s recovery outlook.

Shifting Demand, Changing Operations
With international border restriction and flying concerns, hotels will be welcoming new types of travelers, making the stakes high to leave a positive impression that will lead to repeat business and word-of-mouth recommendations. The survey found that:

Border closures reshaping guest profile: More than 30% of executives surveyed said they expected to see a few more or significantly more domestic travelers, and over 60% were expecting fewer or significantly fewer international travelers. This may offer a silver lining for North American hoteliers, 57% of whom agreed that the greatest majority of their guests were domestic travelers before the health crisis, signaling a more limited impact on demand.
New policies court travelers: Hotels are moving swiftly to abide by consumer demands with more than 80% of executives reporting that they were considering or have already made changes to allow for more flexible cancellation and refund policies.
Safety will be the new gold standard: Unsurprisingly, space and cleanliness will remain critical, with 84% of travelers agreeing that ‘creating social distancing’ rules for hotel public spaces will be the most influential factor in their decision about which travel brands to choose for upcoming trips. Hotel executives appear ready to meet these expectations, with 82% either considering or already altering public spaces to enable social distancing.

Technology Paramount to a Positive Safer Guest Experience
Technology is enabling social distancing and cleanliness by reducing the need for in-person interactions and empowering hotels to deliver ‘high-touch’ service without the ‘touch.’ Specifically:

Hotels go contactless: More than 70% of executives said they were considering or are already using contactless payment and digital messaging services, and close to 60% were considering/already using room keys activated by smartphone. Consumers concur, indicating that contactless payments (35%), digital room keys (26%) and digital messaging services (20%) were among the top three changes that would make them feel more comfortable staying in a hotel.
Self-service tools let guests skip the front desk: Over 70% of executives agreed or strongly agreed that self-service technology will be important to assisting guests while minimizing unnecessary contact, with two thirds (67%) reporting they were considering or are already using self-service check-in procedures. A similar portion of consumers (70%) agreed or strongly agreed they’d be more willing to stay at hospitality businesses that implemented these types of services, with 23% citing self-service check-in via kiosk as a change that would increase their comfort.
Ample amenities, less interaction: More than 60% of executive respondents reported they were considering or already making changes to expand room service options, and 50% are looking into expanding meal takeout/delivery options. One-fifth of guests ranked expanded room service options as a top factor for alleviating concerns, allowing them to avoid shared spaces such as hotel restaurants.

Methodology
The Oracle and Skift survey queried more than 1,800 hospitality executives, from a mix of businesses including hotels, short-term rental operators, cruise companies, boutique hotels and casinos, among others, to understand their opinions about an altered marketplace. Additionally, 4,600 consumers across North America, Europe, Asia-Pacific and Latin America were surveyed to understand the COVID-19’s impact on travel plans and expectations for hotel stays.