|
|
|
Santa
Fe, NM – July 2020 / Newsmaker Alert / The global pandemic has turned
everything on its head, with the hospitality industry hit particularly
hard. As hotels slowly reopen, they must adjust their revenue strategies
to ensure they drive demand while being careful with their pricing decisions.
In
such challenging times, it’s tempting to drop room rates to stimulate bookings.
But for many travelers, the priority will not be price, but safety. A $100
discount on the room rate is unlikely to tempt the decision-making of many
but could end up harming a hotel’s profitability if there’s very little
demand to drive in the first place.
Time
to adjust revenue strategies
|
Up
until recently, Revenue Managers could forecast demand based on historical
data, such as monthly booking patterns and seasonal trends. But for obvious
reasons, this kind of data is no longer much help.
As
such, Revenue Managers need to carefully
monitor automated recommendations from RM systems that might attempt
to drive demand by lowering rates — something that could lead to costly
pricing errors that hotels can ill afford right now.
Doug
Kennedy, President of the Kennedy
Training Network, notes that accurate forecasting will prove incredibly
complex as the market flickers back into life.
“The
market has changed in a way that our forecasting tools and technologies
can’t discern. So there has to be less reliance on automation and more
emphasis on collaboration and discussion between departments. Revenue Managers
and Sales need to be in constant communication to help monitor the market,
identify where demand is picking up, and create effective pricing initiatives.”
Marketing
to a new mindset
|
Marketing
teams will also need to rethink their approach. Not just in terms of how
much to invest and on what platforms, but how the message itself matches
the mindset of travelers.
According
to Emily Bowen, Adjunct Professor and Director of Revenue, Reservations
and Channel Distribution at Penn State University, it’s especially vital
to consider the emotional context behind current decision-making. While
hotels will be eager to push bookings wherever possible, this needs to
be done in the right way, and at the right time.
“Prior
to the pandemic, the hotel space was all about booking direct, limited-time
deals, and competitive discounting. It often involved promoting scarcity
and urgency-based messaging. But we need to acknowledge a shift in the
mindset of the typical traveler.”
This
shift in mindset involves a sense of hesitancy about traveling, which comes
with a new set of priorities, concerns, and expectations. For Bowen, a
hotel’s messaging needs to be sensitive to how travelers are researching
and browsing differently.
“As
a travel shopper, do I want to hear about the cleaning and safety measures
taking place at your hotel? Because my reasons for abandoning might be
down to feeling unsure about whether I should even be taking a trip right
now. A hotel could potentially alienate segments of its audience who are
cautiously exploring their options if their message feels tonally off.”
Of
course, not all hotels have the luxury of having a marketing budget at
present. If that’s the case for your property, social media can play an
especially important role in keeping your brand top-of-mind and offering
the latest travel information.
For
instance, inform your followers about which destination attractions are
open, how you’re enforcing social distancing, mentioning if local restrictions
are in place, and what your cancellation policy is.
If
you can be transparent, honest, and open up a dialogue with your followers,
you’ll help to cement trust in your hotel brand when it matters most.
Flexible
ways of working
Accurate
forecasting also has implications on staffing levels. Many hotels have
laid off and/or placed large numbers of employees on furlough. When is
the right time to bring people back? Revenue Managers and Sales will need
to work closely to ensure staffing levels meet expected demand.
|
For
John Smallwood, CEO of Travel
Outlook, hotels must rethink traditional employee roles and consider
the associated costs of operating in the current climate.
“When
hotels bring staff back, they need to work out how to keep them socially
distanced, minimizing contact time, and providing enough personal protective
equipment. So, there’s got to be a methodical approach to how people return
to work, because overstaffing a property can result in wasted time and
expense.”
Along
with upskilling employees to perform other duties, Smallwood believes outsourcing
can help reduce costs and ease practical complications — including the
use of a well-trained call center team.
“Voice
agents can be a key part of the solution as hotels find a new way of working.
If on-site staff have to take on additional responsibilities, voice agents
can ensure sales calls are always picked up, help drive revenue, and relieve
the burden on a busy hotel team.”
Reimagining
the hotel space
Finally,
there’s the question of how to normalize new standards and potentially
re-fit a hotel’s business. How can a property open spaces (such as lobby
areas, meeting rooms, gyms, bars, and restaurants) that ensure social distancing
while remaining profitable?
While
undoubtedly a challenge, some properties are finding
creative ways to service guests with new experiences, ranging from
virtual spa treatments and outdoor pop-up bars to revamped in-room dining
and cocktail-making outside the guest’s room.
Other
hotels are developing additional revenue streams by focusing on new markets.
For example, Red
Roof is providing office space replacement for people who want to work
remotely and escape the trappings of their own homes with its “Work Under
Our Roof” program.
While
there’s no denying the challenges are great, creative thinking and a willingness
to embrace new ways of working can help hotels start on the path to recovery.
For
additional information, visit www.TravelOutlook.com/openvirtually,
or contact:
Company
Contact:
John
Smallwood, CEO
Travel
Outlook Premium Reservations Call Center
Email:
openvirtually@traveloutlook.com
Phone:
844-TRAVELOUTLOOK (844-872-8356)
About
Travel Outlook
Travel
Outlook, the leading hotel reservations call center service, is the
only call center certified by the Kennedy Training Network (KTN). KTN’s
rigorous certification process involves practical training, challenging
assessments, and a demonstration of mastery.
Media
Contact:
Raul
Vega
LEVEL
5 Hospitality
www.LEVEL5hospitality.com
|
View
Previous Release: The
Imminent Influx of Call Volume: Get the Most Revenue from Each Call
(06/11/20) |