With many emerging players in the digital marketplace, increasing direct, profitable channel contribution becomes more and more critical for a successful hotel. The commercial team (including sales, revenue, and marketing) has to align their current state, future goals, and actions to achieve those goals to leverage their share of Brand.com.
Gain a realistic picture of performance at your property and competitor hotels
Before strategies can be created and discussed, the hotel team has to get a realistic picture of their current performance and the competitor’s performance. One easy way to do this is to calculate channel demand share for the property by month (Room nights sold by channel / total room nights sold). This way, the team can see an accurate picture of the source of their business and recognize seasonal patterns. The team should identify strong periods with a higher share of profitable channel mix as well as periods with a higher reliance on OTA business. This exercise can help everyone understand when shifting share is more important.
The next step is understanding additional demand in your competitor hotels driven by those profitable channels. Traditionally, our “competitors” are limited to the hotels in our Primary Comp Set, but opportunities exist outside of this group of hotels. Creating customized comp sets for each rate category can help you laser focus on the demand you want to target. For example, your Corporate competitors may be very different than your Group or AAA competitors. Identify competitors by rate category to understand what’s out there that your property can realistically target.
Align on targeted commercial strategies
After you have a realistic picture of your performance compared to your market, the commercial strategy team can set clear, defined goals to reach. These goals should focus on a more profitable mix of business. Determine the appropriate demand share for each channel that you hope to target based on what else is available in your market. Set two to three targets with clear ROI assigned; for example, if we shift 1% of our share from OTAs to Brand.com, we’ll bring in $X, so we’re comfortable spending $Y in marketing to achieve that goal. This can help the entire commercial team align on the most important focuses for the hotel and work together towards a common goal.
Action on goals, track performance, and adjust as needed
Once you know what’s available in your market and set specific goals, the team should start actioning and tracking these goals. When Brand.com is a focus, reach out to your field marketing team at the brand level to see how they can support your efforts. If Adv Purchase business is very prevalent in your market, shop discounts and merchandising used by competitors on their brand site. Evaluate your high demand periods just as closely as your low demand periods; are there any months where you can improve profitability simply by reducing reliance on less profitable business and capitalizing on the demand that’s already in your area?
Make sure to keep a close eye on changes in your performance each week across all channels to ensure your strategies have the intended effect. If after a few months, demand share isn’t changing or is heading in the wrong direction, update your action plan as a team. Continue to compare your performance to your competitors to understand if the market is changing, or if your strategy is making a meaningful impact on your performance. Don’t be afraid to change things up if they aren’t going your way; the key to success is a dynamic conversation around strategies that includes the entire team.
The most effective way to leverage your Brand.com share is to use the right data to create targeted strategies and track that performance overtime. One great option is HummingbirdPXM’s Optimal Business Mix; this algorithm will identify your competitors across each rate category and highlight the most profitable opportunities in your market. Your entire commercial team should maximize this data and be involved in every step of the conversation, starting from identifying the right business targets to measuring your success after the plan has been deployed. The platform can help the team clearly define goals and strategies that lead the hotel to a higher share of Brand.com business overall and therefore make the property even more profitable.
