Transcript Progress from Profit - Annual Sales, Marketing and Revenue

Workshop
Profit for progress
Ciara McCabe, Daniel Skilbeck & Marc Ladi – Best Western
THINK BIG, START SMALL, ACT NOW!
Progress from Profit
Maximising the value
of bookings and guests
Profit from Preparation
• Pre-arrival
• Up-selling
Profit from Presentation
• Reviews
• Engagement
Profit from
Performance
Profit from Pricing
• Cost of distribution
• Demand forecasts
• Progressive pricing
• Review results
Profit from Personality
• Personality Experience
Focus on forecasts
2013
2014
Profit from pricing
Reactive based pricing
120
105
100
100
95
90
85
60
80
40
75
70
20
65
0
60
60
54
48
42
36
30
24
Weeks to Arrival
18
12
6
0
Rate
80
Focus on
Focus on forecasts
2013
2014
Profit from pricing
Planning based strategy
105
100
95
85
80
75
70
65
60
49
43
37
31
25
Weeks to Arrival
19
13
7
1
Rate
90
What’s it worth...?
BAR £100.00
APR £90.00
Leisure B&B £85.00
(10% discount)
(15% discount)
Booking.com
Web
Web – MLOS 2
18% commission
5.15% distribution
5.15% distribution
Value £82.00
Value £85.37
Value £159.70
Flash Dance!
•Target low demand periods
•Access new customer markets
•£1.5M revenue
•Controlled availability
•35,000+ RNs
•Room
+35.9% of BAR
•Protectnights
the integrity
•Revenue +71.4%
Pricing in action...
BEST WESTERN Westminster Hotel, Nottingham
• Pricing...
Cost of distribution & length of stay
• Action...
Price Leisure in line with BAR
• Result...
Leisure growth – RNs and Revenue
Steps to Success...
Jan – Jun 2014
Selling Strategy
Control Sheet
STR Report
Rubicon Report
+14.77% higher
revenue growth
through discounted
rate plans
Rate Bucket vs non
Rate Bucket Hotels
RATE
BUCKETS
SYSTEM
• Demand forecasting tool
• Expected occupancy
• Early call to take action
Steps to Success...
Increase
Occupancy
ADR
X2
VR
• Mark up rate
• Bonus scheme for BW Rewards Members
• No agent commission
•Frequent close outs = lost revenue
• Increased revenue per room night
• Increased engagement from guests
• Increased bookings for hotels
• 607 RNs
• £70,750 revenue
Profit from pricing
Profit from Promoters
Revenue in Customer Service
•
Intent To Recommend (ITR)
–
–
Medallia
Trip Advisor
•
Decreased employee turnover
•
Increased ADR
•
Value for Money (VFM)
•
Reinvestment in property
•
Drive Brand Equity
Are they really that bad...?
• ReviewPro research
– 90 million reviews
– 10 languages
– 65 sites
Positive 60%
Neutral 28%
Negative 12%
As most online reviews are positive; this indicates a need to identify,
cultivate and encourage these “consumer advocates” to tell others
about our brand and your hotel.
Action & Reaction
Reviews and why they matter
•81%
81% - reviews seen as important in their choice
•79%
79% - reassured by management response to a bad review
•78%
78% - encouraged by management response to a good review
•68%
68% - choose one property over another based on hotel
responses
*based on 2011 TripAdvisor survey
When it’s
good...
• Concise
• Personalised
• Include the team
• Thank You
And when
it’s not...
• Issues
• Changes
• Outputs
• Include the team
• Thank You
Picking up the patterns...
• Identify common problems
• Use Text Analytics on Medallia
• Drill down to specific areas
• Can filter by “Sentiment”
• Aim for a problem elimination strategy
Let’s have a look....
Reviews in action...
BEST WESTERN Henley Hotel
• Reviews...
“Double room is very small.”
• Action...
Double rooms split – Standard Double & Small Double
• Result...
• Room night and revenue growth
So, how was your stay?
• Marketing leaflets
Rewards Members
•Average
E-mail
advertising
lifetime RNs
11
Non-Rewards Members
Average lifetime RNs
booking
value optimisation
£127.30
Average booking value
•Average
Search
engine
OTA repeat
BWR
Members
bookers
booking direct
13%
94%
2
£98.23
• An experience to book again.....Priceless??
So, what now...?
Best Western Guide to Rate Plans
12 months and counting...
Review – Rate plans
Discountsbooked
• Review business
Channels
• Assess the
gaps
Closeouts
• BEAT LAST
YEAR!!!
So, what now...?
THINK
ActBIG!!!
Now
Start small...