Episode three of the Shiji Insights Podcast features Fernando Vives, Chief Commercial Officer at Minor Hotels, who shares his wealth of experience and thoughts on reputation’s influence on revenue, the concept of attribute-based selling (ABS), and current trends in the hospitality industry. The Shiji Insights Podcast aims to provide listeners with valuable perspectives from industry leaders, and this episode is no exception. This review explores the episode’s main points, summarising and analysing Fernando’s discussion with our host, Florencia Cueto Pedrotti. The episode provides a deep dive into critical aspects of the hospitality industry, offering both strategic insights and practical advice.
Summary and Review
The episode begins with a warm welcome from Florencia Cueto, who introduces Fernando Vives and notes his impressive 25-year career in the hotel industry. Fernando’s journey started in 1999 as a Credit Controller at the Ritz. He now holds a significant role at Minor Hotels, overseeing a portfolio that includes brands like NH Hotels, Tívoli, and Anantara.
“A strong online reputation not only allows for higher pricing but also enhances visibility and sales potential.” Fernando Vives
Key Topics Discussed
Rebranding and Corporate Identity
Fernando discusses the recent rebranding from NH Hotel Group to Minor Hotels Europe and Americas. This move creates a unified corporate image and aligns with Minor Hotels, the major shareholder, which owns approximately 95% of the capital. The rebranding simplifies commercial efforts and maintains brand recognition. NH remains a strong brand within the group.
The Role of Reputation in Revenue Generation
A significant portion of the discussion centres around the impact of online reputation on revenue. Fernando emphasises that a strong online reputation allows for higher pricing and enhances visibility and sales potential. He recounts being an early adopter of Reputation Management software, using data to track and improve hotel performance. Fernando Vives stated, “A strong online reputation not only allows for higher pricing but also enhances visibility and sales potential.” The conversation highlights the importance of addressing customer reviews. Positive feedback can drive repeat business and brand loyalty.
Attribute-Based Selling (ABS)
Key Takeaways
Reputation is Crucial: A strong online reputation enhances visibility, allows for higher pricing, and drives repeat business.
Effective Review Management: Addressing customer reviews thoughtfully can turn negative experiences into positive outcomes and boost overall reputation.
Potential of Attribute-Based Selling: ABS offers a personalised booking experience and can optimise inventory, but requires industry-wide adoption and sophisticated systems.
Shifting Travel Patterns: Flexible work schedules and a preference for less crowded destinations lead to a more distributed demand throughout the year.
Strategic Rebranding: Aligning corporate identity with major shareholders and maintaining brand recognition can simplify commercial efforts and strengthen market presence.
Fernando expresses his enthusiasm for ABS [see ABS primer article], a concept that personalises the booking experience. ABS allows guests to choose specific room attributes, optimising inventory and enhancing guest satisfaction.
For instance, a guest might choose a room based on its view, bed type, or proximity to amenities. However, Fernando acknowledges the challenges in implementing ABS. These include pricing complexity and ensuring seamless connectivity between booking systems and third-party channels. The success of ABS hinges on industry-wide adoption and technological advancements to streamline the process.
ABS represents a forward-thinking approach to room sales, aligning with the broader personalisation trend in consumer services. Fernando’s insights reveal both the potential benefits and the operational challenges of ABS. His advocacy for breaking down the booking process into simpler, attribute-based choices could revolutionise how hotels manage inventory and pricing.
Trends in the Hospitality Industry
Fernando shares his observations on current trends. He notes a shift in vacation patterns, with travellers opting for off-peak months like June, July, and September. This helps avoid crowds and high prices. This trend has led to record-high occupancy in traditionally off-peak months. It indicates a more distributed demand throughout the year. Fernando highlights the strong performance of Tívoli resorts, especially in regions like the Algarve and Tenerife.
Reputation and Revenue
Fernando’s emphasis on reputation management underscores a fundamental truth in hospitality: a satisfied customer is the best form of marketing. His approach to using data from their chosen Reputation Management system to track performance and identify opportunities highlights the importance of leveraging technology for strategic decision-making. The discussion on handling customer reviews illustrates the delicate balance between maintaining high standards and addressing feedback constructively.
Emerging Trends
Fernando noted that the shift in travel patterns reflects a broader change in consumer behaviour driven by flexible work schedules. There is a growing desire for less crowded destinations. This trend presents opportunities for hoteliers to adjust their marketing strategies and optimise occupancy throughout the year. The strong performance of Tívoli Resorts indicates that high-quality offerings and strategic positioning can attract travellers even in non-peak months.
Conclusion
The third episode of the Shiji Insights podcast offers valuable perspectives from a seasoned industry leader. Fernando Vives’ insights into the importance of reputation, the potential of ABS, and emerging travel trends provide listeners with actionable knowledge to navigate the dynamic hospitality landscape. The episode underscores the significance of strategic rebranding, effective reputation management, and innovative selling approaches in driving success in the hotel industry.
Overall, this episode of Shiji Insights provides a comprehensive look into the current trends and strategies shaping the hospitality industry, making it a must-listen for professionals seeking to stay ahead in the competitive landscape.
Watch the full episode here: (In Spanish)
Minor Hotels is a Shiji ReviewPro customer.
