Strategic Revenue Management Leveraging the Online Channels Michelle Best Rosinsky Senior Manager, Hotwire Expedia® Partner Services Group © Expedia Inc. Confidential and proprietary. All rights reserved.
May 12, 2015
. . .
Strategic Revenue Management Leveraging the Online Channels
Michelle Best Rosinsky
Senior Manager, Hotwire
Expedia® Partner Services Group
© Expedia Inc. Confidential and proprietary. All rights reserved.
© Expedia Inc. Confidential and proprietary. All rights reserved. Expedia ® Partner Services Group | 2 AGENDA
Why Revenue Management is more important than ever Online Distribution Strategy Matrix Tips to Build Your Online Strategy
IRELAND HOTEL HEADWINDS 1. Weakening external and domestic demand
2. Unfavourable foreign exchange movements
3. Overcapacity
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STRATEGIC OPPORTUNITY TO GROW REVPAR Ireland ADR and Occupancy 2004-2011 YTD through August
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Source: Horwath Bastow Charleton
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Pri
ce
Booking Window
STRATEGY MATRIX
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1. Build an international strategy
2. Play the booking curve
3. Plan to fill your gaps
4. Leverage opaque channels
TIPS TO BUILD YOUR STRATEGY
Build an international
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STRATEGY
A Presence Around the
World
Local Language
Translation
New Demand to Your Hotel
Multiple Currency Support
ONLINE CHANNELS PROVIDE INTERNATIONAL REACH…
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0.9% Italy
1.4% Japan
1.6% France
1.8% Germany
1.8% UK
2.6% US
2.8% Canada
India 8.3%
China 9.0%
World economies are rebounding at different rates
Source: European Tourism 2010, Trends and Prospects, Q3/2010, European Travel Commission
… AND OPPPORTUNITY
You can optimize your RevPAR through a
targeted international strategy
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Expedia.com
Expedia.co.jp
SAME HOTEL, DIFFERENT SITES
Develop an international strategy that meets your needs
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Play the
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booking
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26% 31% 43%
3.0 2
1.5
€€€ €€
€
> 1 month 1 week - 1 month < 1 week
ADR
LOS
Share of
Rooms Day
of
Arr
ival
AN UNMANAGED BOOKING CURVE FORCES ADR DOWN
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1. BUILD YOUR BASE
2 .OPTIMIZE RATES/OCCUPANCY
3. YIELD RATES UP
Day
of
Arr
ival
> 1 month 1 week - 1 month < 1 week
> 1 month 1 week - 1 month < 1 week
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26% 31% 43%
> 1 month 1 week - 1 month < 1 week
ADR
LOS
Share of Rooms
Day
of
Arr
ival
R
evPA
R
1. BUILD YOUR BASE
2 .OPTIMIZE RATES/OCCUPANCY
3. YIELD RATES UP
Develop your own high yield strategy based to maximize the
booking curve
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Fill the
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G A P S
Group Wash
Month End Push
Sundays Cancellations
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Christmas
Short Lengths of Stays
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BE SURGICAL AND TARGET NEEDS
Weekend Promotion
Christmas Value Adds
Packages Base Business
Opaque Last Minute
Have a 365 day strategy and target your need periods to
maximize revenue
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Leverage
OPAQUE
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BUNDLED BOOKINGS ARE VALUABLE
Higher ADR
Booking window
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Length of Stay 2x longer stays
23 days further out
$23 ADR premium
Cancel less 40% less likely to cancel
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TRUE OPAQUE CHANNELS DRIVE LAST MINUTE DEMAND
Replace last-minute group wash and
cancellations
Fill holes in weekly stay patterns
Generate business after a re-flag,
renovation or new opening
Build incremental visitors to the hotel
Secure low season sales without
advertising low rates
Build a non-refundable base
months out
OPAQUE STRATEGIES
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Opaque Package
Use packages to build your base
Use opaque to sell your last rooms
Day
of
Arr
ival
Include bundled and pure opaque channels in your strategy
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1. Build an international strategy
2. Play the booking curve
3. Plan to fill your gaps
4. Leverage opaque channels
. . .
THANK YOU Go raibh maith agat
Michelle Best Rosinsky
© Expedia Inc. Confidential and proprietary. All rights reserved.