FoodnHotel Asia 2014 - Increasing Revenue Without Significant Financial Investment

Maximizing Revenue Per Available Room - Increasing Revenue Without Significant Financial InvestmentTarandeep Singh Director Revenue Management for Hire (AMEA) & Manila Ops (AMEA, Greater China & Europe)

09 April 2014

2Asia, Middle East & Africa Revenue Management

| © 2014 IHG. All rights reserved

What we will cover?

On Premise Mobile Marketing

Innovative Revenue Generating Ideas

Upsell Training

Targeting Ancillary Revenue



What we will cover?



Upsell Training




The only way to interact with

your customer whilehe is enjoying your product or is in a position to enjoy your product

(i.e. traveling) is using a

mobile device



TEXT MESSAGING

MOBILE OPTIMIZED WEBSITES

MOBILE ADVERTISING

MOBILE EMAIL



No one wants to be marketed to,But everyone likes to have relevant information available to them.













V/S



What we will cover?



Upselling






Every stage in the travel cycle has

become an engagementOpportunity.

Contextualize & Personalize





Think of inventory

as a precious asset versus

a perishable commodity



Fractional Pricing

Applied to a hotel, fractional pricing could be used to day rate pricing

Car rental companies calculate their extra hour price by taking a percentage of the price per day.

If the cost of the extra hours meets or exceeds the daily rate, then the system automatically jumps to the daily rate.



Fractional Pricing

Car Rental Company Methodology applied to Hotels

$250

Price of the Room per night

Fractional TimeHour

Fractional Price15%



Airport hotels are prime examples of where fractional pricing helps

Key questions that a hotel should consider before using fractional pricing: Does it make sense for the product/service to be sold in fractional increments? What increments should be made available? What is the % of price applied to the fraction?

Airport Hotel – Day rate example

A guest wants to book a room to use between flights for 3 hours

Price $37.50 per hour ($250*15%) Times 3 hours =

$112.50

Guest changes the request for a longer stay of 7 hours

Price $37.50 per hour ($250*15%)Times 7 hours =

$262.50Since fractional price is greater than the primary price, we need to sell room for $250.00

x



What we will cover?



Upsell Training




Setting your house in order…

Communications need to be

thoughtful and transparent

Clear signs of executive support need to start at the

top and cascade throughout the

organization

Think outside the box to deliver training and

communications

We need to be aware of cultural and generational differences in

learning styles

We need to ensure everyone understands that this is business

transformation not just a n incentive exercise

Learn from past experiences – a project like this

should not fail during delivery

Owner engagement and leadership is

important



Training your Front Desk in Upselling

Successful Upselling Program

Pricing Structure

Staff TrainingRecognition



IDENTIFYANCILLARY REVENUE

UNBUNDLESERVICES

INTELLIGENTCHECK IN PROCESS



Quick Tips for In-house Upselling Training

Remember – Its all about Communication!! Reconfirm the pre-reserved accommodation Reassure the guest that they already have a nice room Probe to find out if the guest is aware of available upgrades Present the availability of upgrades as a unique opportunity Upsell early arrivals into a higher room category. Utilize incremental sales techniques. Differentiate between OTA bookings and others Demonstrate the value received. Be as specific as possible Mention higher rates as a reference point to position lower rates as being a good

value. When quoting rates to walk-ins, always offer a menu of options. Most importantly - Use Visual Aids Get their Buy In and Feedback Document a SOP

Simplicity is the key



Sample Up-sell Tracker



Quick Tips for In-house Upselling Training



What we will cover?



Upsell Training






Ancillary Revenue Opportunity

F&B

Breakfast

Cake

Meals

Wine

BottleFruit

Basket

Mini Bar

Cookery Classes



Transportation

A/P trsfrs

Local trsfrs

Office trsfrs

Bike rental




Business Meetings

Meeting Equipment

Upgraded

Wi-Fi

Team Events

Soft

Mini Bar





Spa & Wellness

Pool(for Non

Residents)

Massage

Treatments

Gym (Non Residents)

Sports Facilities

Trainer



Miscell.

Flowers

Extra Bed / Crib

Connecting Rooms

Butler Service

Valet Services

Parking Fee




Key Points

Understand the profitability of all your offerings - packages, food, drinks, spa - as well as what the demand for each of these are

Identify the biggest revenue opportunities – food & beverage, conference facilities, spa, etc

Prioritize by revenue and ease of implementation

Set the targets and define a clear action plan

Make sure you have the right information and the key support needed to achieve your goals



Thank You

FoodnHotel Asia 2014 - Increasing Revenue Without Significant Financial Investment

Travel

ancillary revenue

rights reserved training

rights reserved everystage

rights reserved airport

prereserved accommodation

premise mobile marketing

hours price

mobile device