Robert Cole, CEO of RockCheetah, while presenting How Hotel Revenue Strategy Unlocks Profit Growth addressed the structural forces impacting the US hotel industry, as well as the costs & challenges associated with acquiring and retaining guests, and how guest engagement and personalization is the future of the hospitality industry.
The webinar, broadcast on May 11, 2017 was sponsored by Agilysis and Duetto. It also featured presentations by Thor Hanen, Agilysis Sales Engineer and Dan Yacker, VP of Global Strategic Alliances for Duetto.
1. HOW HOTEL REVENUE
STRATEGY UNLOCKS
PROFIT GROWTH
Presenters:
Robert Shecterle
Director of
Marketing,
Agilysys
Thor Hansen
Sales Engineer,
Agilysys
Robert Cole -
Founder/CEO at
RockCheetah Senior
Lodging and Leisure
Travel Research Analyst,
Phocuswright
Dan Yacker
VP of Global
Strategic Alliances,
Duetto
2. BUILDING LASTING CONNECTIONS
Demand Reaches Plateau
•Records in Occ, ADR, RevPAR
•Challenging YOY Comparisons
•Politics – Isolationism, Nationalism
3. BUILDING LASTING CONNECTIONS
The Things You Can’t See
“Having been in the hotel and travel
business for more than 40 years, I can
safely say that I have never seen change
happen as fast, and at such magnitude,
as over the last few years.”
7. BUILDING LASTING CONNECTIONS
Loyalty, Customization and Personalization
Customization vs. Personalization | Reward programs vs. loyalty | Discounting vs. exceeding expectations
10. BUILDING LASTING CONNECTIONS
Takeaways: What do you need now?
Needed now:
•Structured website with the right content
•Ability to identify personas
•Knowledge to deploy analytics
How to do it:
•Treat all form of engagement like campaigns
•Embrace all devices/channels
•Anticipate needs and establish holistic
approach to consistent service delivery
Robert Cole
Founder, RockCheetah
Analyst, Phocuswright
18. BUILDING LASTING CONNECTIONS
Over 100+ Certified Partners for
Complete Customization
Visual One
PMS / LMS
Marketing
Channel
Management
Booking
Engine
Mobile
Device
Support
Casino
Systems
Revenue
Management
Rich Partner Ecosystem
21. BUILDING LASTING CONNECTIONS
• Rising costs
• Losing share to OTAs
• Market uncertainty
• Bolstering loyalty
• Influencing consumer behavior
• Doing more with less
Industry Challenges
22. BUILDING LASTING CONNECTIONS
• Historical data alone does not fully
show unconstrained demand
• BAR pricing approach limits
opportunity for revenue
• Reliance on legacy technology,
spreadsheets holds hotels back from
strategic thinking
Conventional Approaches are Ineffective
23. BUILDING LASTING CONNECTIONS
POINTS WiFi
POINTS FOOD WiFi
POINTS
POINTS WiFi
P
PARKING
POINTS
WiFi
Today’s Undifferentiated Loyalty isn’t Working
24. BUILDING LASTING CONNECTIONS
• Members know when they’re
getting standard, cookie-
cutter rewards and deals
• Past stays and preferences
don't inform current offers
• Guests always have to hunt
for what they want
• Brands move goalposts and
change points thresholds
for free room nights
Frustration, not
Loyalty
25. BUILDING LASTING CONNECTIONS
25
Top 7 Mistakes in Pricing
1
2
3
4
5
6
7
Selling out too soon
Not changing rates
Pricing by “gut feel”
Reacting to sudden price
changes by the competition
Selling rooms on a first-come
first-serve basis
Linking your different price
points together
Shutting down price points at
the end of the day (5pm)
27. BUILDING LASTING CONNECTIONS
• Visibility into unconstrained demand via
consumer-centric data
• Ability to respond in real time and to
optimize all bookings across all
channels, segments, room types
• Integrated cloud technology empowers
team to focus on driving revenue and
enables collaboration across the
enterprise
Elevating Your Revenue Strategy
28. BUILDING LASTING CONNECTIONS
Traditional BAR Pricing
capacity
10% AAA
20% Promo Rate
10% AAA
20% Promo Rate
10% AAA
20% Promo Rate
10% AAA
20% Promo Rate
Day1 Day2 Day3 Day4
SOLD OUT
Occupancy
29. BUILDING LASTING CONNECTIONS
Deeper Segmentation, Better Pricing
The Right Segmentation for
YOU
Segmentation: to divide the marketplace into parts, or
segments, which are definable, accessible, actionable, and
profitable and have a growth potential.
Economic Times
OR
30. What if you could price every channel,
segment and room type
independently?
31. BUILDING LASTING CONNECTIONS
Open Pricing
capacity
10% AAA
20% Promo Rate
10% AAA
20% Promo Rate
10% AAA
20% Promo Rate
10% AAA
20% Promo Rate
Day1 Day2 Day3 Day4
SOLD OUT
Occupancy
1%
3%
5%
10%
34. BUILDING LASTING CONNECTIONS
• New ways of thinking
• Greater insight into demand and consumer behavior
• Flexible technology able to price dynamically
and in real time
• The ability to scale quickly and become
more strategic
What the Industry Needs
35. BUILDING LASTING CONNECTIONS
The Power of Personalization
Best practices for true personalization
•Find a single source of truth
•Track customer and hotel data from all systems
•Real-time analysis yields actionable insights
•Personalize 1-to-1 offers or upsell from call center to booking engine to
front desk
Recognized, rewarded guests stay loyal to your property,
maximizing long-term ROI
36. BUILDING LASTING CONNECTIONS
The Duetto Difference
Deep experience across the organization from leading hospitality and technology companies.
Hotel and casino Revenue Strategy
application combining predictive analytics
and a powerful pricing engine
GameChanger ScoreBoard
The industry’s first Revenue Intelligence
platform enabling greater real-time analysis
and forecasting
37. BUILDING LASTING CONNECTIONS
• Better, more actionable data: web shopping regrets and denials, airlift data,
Demand360 for Duetto
• Flexibility and control: individually yield all segments, rate codes and room types
• Smarter tools: smart alerts, multi-property management
• Unique cloud architecture for rapid innovation and real-time data
• Unparalleled support: Customer Success and Managed Services teams staffed
by experienced revenue managers
Key Takeaways