Revenue Management

Hoteliers take a harder look at how they set room rates

Sep 03, 2019 / Pricing
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Shutterstock

Amateurs cut rates to fill hotel rooms. Pros take more sophisticated approaches, such as coordinating to stimulate demand from the most profitable customers.

Some hotel operators - MGM Resorts, RLH, Omni, Radisson, and Melia - have been fine-tuning their efforts at setting rates for rooms, upgrades, and other services. They’ve been leveraging a growing prowess at automation and cross-department teamwork to set prices for maximum profit.

Revenue managers tend to focus on price-setting. Sales and marketing teams typically look at stimulating demand, such as by running email marketing campaigns or advertising on search engines like Google.

In a change, many hotel owners are insisting on greater cooperation among the teams. For example, rather than cut room rates, a hotel could use outbound sales and marketing efforts to grow demand in other ways.

Products & Services

Hotels embrace role as curators of niche products

Sep 03, 2019 / Branding
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Shutterstock

One of the most interesting opportunities for hospitality brands is to be a new and intimate discovery channel for consumers.

This idea is nothing new, of course. Brands have been placing themselves in hotel rooms for ages: Aesop likely owes some of its initial rise to being placed in the rooms at Park Hyatt Tokyo before anyone knew the brand. The taste-making audience who stays there helped with global pollination at an early stage. It was old-school seeding. Right people, right context, new-feeling product. Magic can happen from that.

This idea of brand-building through distribution is powerful. A luxury hotel delights in the details, and the best ones aren’t selling a bed and a room, but rather a complete world view. Hospitality brands are well-placed to introduce the right products in an inspirational context, where an audience is much more likely to be open to receiving them.

Distribution

Booking.com, Skyscanner, Ctrip and TripAdvisor join travel sustainability pact

Sep 03, 2019 / OTAs
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Shutterstock

A quartet of major online travel brands have joined forces as part of a global partnership to encourage sustainable tourism projects around the world.

Booking.com, Skyscanner, Ctrip, and TripAdvisor, alongside payment giant Visa, have come together to form Travalyst in an effort to "mobilize the travel industry as a catalyst for good, aiming to transform the future of travel for everyone."

In short, they will work together in a series of initiatives to educate, raise awareness and, in their words, "promote positive change."

The Travalyst project is being launched on the back of data it claims illustrates there is a growing awareness by travelers over issues around sustainability.

Technology

OYO to invest in machine learning-powered dynamic pricing

Sep 03, 2019 / OYO
OYO Rooms
OYO Rooms

The company has acquired a Copenhagen-based data science company, with machine learning and business intelligence capabilities, specialized in dynamic pricing.

With the acquisition of Danamica, OYO will be able to drive top-line growth by leveraging dynamic pricing across all its brands – OYO Home, Belvilla and DanCenter, all of them already at the forefront of vacation rental pricing in Europe.

Additionally, OYO and its real estate partners around the world will benefit using data sciences for improved yield. Starting with Europe, Danamica’s technology innovations will benefit OYO’s global vacation homes business.

Products & Services

How guilty should you feel about your vacation?

Sep 03, 2019 / Overtourism
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Shutterstock

Privileged but climate-conscious Americans are facing an August reckoning: Is your summer vacation destroying our planet?

And air travel isn’t the only part of the growing vacation guilt: You may also be uneasy about contributing to environmental and social degradation of destinations plagued by overtourism, by joining the crowds in Venice or Angkor Wat, or renting an Airbnb in what used to be an affordable residential neighborhood of Barcelona.

And there’s an increasing discomfort with the travel influencers who glamorize and idealize travel into a if-you-don’t-do-this-there-must-be-something-wrong-with-you part of the human experience.

Related: Travel shaming is coming to America