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THE SOLUTION TO MISSED REVENUE OPPORTUNITIES IN HOSPITALITY

“Who is today’s ideal commercial leader? And what career path is most attractive for aspiring leaders to reach that position?” Scott Dahl, program director of the master’s in hospitality strategy, digital transformation, Les Roches Global Hospitality, as part of NILE Hospitality World Panel series, was asked this question by Scott Dahl.

My view is that neither. Let me explain. It is quite common for sales, marketing, and revenue management (RM), specialists and teams to operate independently from each other, both at the corporate and personal level.

They may even be competing to sell the same rooms in some cases. The left hand, which is one team, doesn’t know what the righthand – all the other teams – are doing. This can lead to distribution channel imbalances and marketing efficiency, price integrity and overall revenue generation as well as owners’ ROI. You can Also go with the Revenue Management Companies in India.

Sales, marketing, and RM have always been separate departments with their own goals and technology tools. They also have their own vendors, databases, vendors, and other resources. What is more important is that neither of these teams are being incentivized for increasing direct bookings or increasing percent of repeat business.

This is the key reason for the worrying trend of missed revenue opportunities. It also explains why loyalty members are being alienated and profitability has worsened that was started even before the pandemic.

What is the solution?

My view is that the only solution is to create an integrated revenue generation commercial team. The corporate and property level should have a single-minded team that includes sales, marketing, RM, and CRM specialists. This team will be responsible for acquiring, engaging, and retaining guests, optimizing profitability and performance, balancing the property’s channels strategy, and increasing revenue, particularly direct bookings.

Who will be the leader of this new integrated revenue generation group? The property management company needs a new revenue generation manager or officer. This is a leader who can be cross-functional and versed in all five areas: marketing, sales, RM, CRM, technology, and sales.

This is why technology and CRM should be an integral part of an integrated revenue generation team.

CRM

The current fragmented approach to guest engagement is evident in the way that past guest engagement efforts (CRM), are kept separate from new customer acquisitions and marketing efforts. Independent hotels are an example of this. Only 10% to 15% are repeat customers, and 85% to 90% are new guests. It is 10 to 15% cheaper to acquire past guests than it is to acquire new guests.

Without CRM technology and a program, you cannot have repeat business. A meaningful CRM technology program – which should be part of your hotel tech stack — can guarantee deep engagement with past and future guests. CRM technology not only automates pre-, during, and post-stay communications and guest satisfaction surveys, as well as drip marketing campaigns and guest retention marketing automation, but also provides guest recognition program management, loyalty marketing, and guest recognition programs.

These fully automated CRM initiatives keep the conversation going with past and future guests. They keep them involved and direct them in the right direction. To book their hotel when they return to your destination.

You can also use your CRM first-party information about your best friends to launch similar audience marketing campaigns on Google, Facebook and Instagram to target potential customers who have similar characteristics to your best friends.

Technology

Digital transformation was accelerated by 10 years due to the pandemic (McKinsey & Company). Today’s travelers are more tech-savvy and digitally literate than ever before. Today’s traveler expectations revolve around self-service and do-it-yourself. This includes online booking and planning, as well as preferences for contactless check-in, mobile keys, voice assistants, and messaging with staff. To “appease” their high tech expectations, serious technology implementations will be required. You Can Talk to Hospitality Management Companies in India.

The combination of a new customer who is tech-savvy and high labor costs and acute labor shortages are reasons technology is gaining ground in every sector of the industry, including guest services, communications, revenue management and distribution, CRM, marketing, and guest services. This has led to the rise of technologists, who are experts in digital transformation and can understand and evaluate the technology trends, best practices, and how they can be used in hospitality.

It is clear that the complex journey of today’s travel consumer requires an integrated strategy to engage with, acquire, serve and retain them across all digital touchpoints. This includes digital channels and devices.

Only one-minded teams can maximize guest engagement, retention, satisfaction, and increase revenues. This includes the revenue generation team which includes the technology specialists, sales, marketing, and CRM.

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