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Reputation management
Reputation management
Reputation management
Reputation management
Reputation management
Reputation management
Reputation management
Reputation management
Reputation management
Reputation management
Reputation management
Reputation management
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Reputation management

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  • 1. REVIEWPROReputation drives revenue:How traveler reviews affect hotel pricing power Webinar Melle Cecilia Filippi MBA 2B
  • 2. What is ReviewPro? Founded in 2008 with the idea that social medias could be used to drive revenue growth by increasing guest satisfaction. Today: it has thousands of hotel clients in more than 70 countries around the world Analysis, customer intelligence, competitive benchmarking and automative reports all provide insight for action. Daniel Edward Craig invites experts in order to discuss highlights of the research, its implications and how hotels can use these data to optimize rates, distribution channels and revenue. Measure of guest satisfaction through guests’ reviews Competitors analysis through competitive quality index Performance measure
  • 3. Three guests… Chris Anderson, Associate Professor in Cornell University School of Hotel Administration Victoria Edwards, Co-founder of Buckhiester Management Fernando Vives Soler, Global Director of Revenue management for Meliã Hotels International
  • 4. What is GRI? « GRI »  stands  for  Global  Revenue  Index  which  is  the  « Online  guest satisfaction index ». Has more than 1,000 of clients today Can be used for any types of hotels Has the ability to analyze reviews from more than 90 OTAs and  guests reviews’ websites It  takes  into  account  a  quantitative  analysis  or  review  scores  from all major OTAs and reviews’ websites. GRI  is  used  to  track  operational  and  service  excellence  as  well  as  performance  compared  to  direct  competitors    Analyze  an  establishment improvement over time
  • 5. The results 1st  analysis  from  Cornell  University,  the  1st  hospitality  management program which is now world leader in this field: Guests’  reviews  and  social  medias  used  a  public  data  showing  relationship between reviews and bookings -Impact  of  Users  Generated  Content  (UGC)  and  social  medias  upon guests’ purchasing decisions and then hotel performance Relationship  between  online  reputation  and  hotel  performance  through three points: - Performance (Revenue Per Available Room) - Pricing power (Average Daily Rate) - Occupancy (Demand)
  • 6.  Analysis  of  Travelocity  which  is  a  major  North  American  Online  Travel Agency  Increase in review score by 1 point (3.8 to 4.8) increases the  odds  of  being  booked  by  13.5%  and  can  increase  price  by  8%  while maintaining probability of purchase and market share Consistent results regarding the impacts with several other OTAs 
  • 7.  2nd analysis from Victoria Edwards: Develops a new synergie for the Revenue Management finding out a correlation between Marketing (demand creation), Sales (demand capture) and Revenue management (demand management). Three generations of Revenue managers: - Generation 1: revenue manager is the reservation manager -Generation 2: manager more sophisticated, with more tools and more education -Generation 3: Actually combines all the elements, being the most efficient
  • 8.  Customer purchase is based on Value Value = Price + Product (service and quality) You can compare your hotel value with the competitive set Indexes from review sites provide pricing signals You have to dedermine the « weight » you place on metrics provided by reputation management reports: how to use these metrics? Value rating on TripAdvisor, Expedia…  The quality of value index will be a driving force to your pricing decision
  • 9. - Compare variance month over month-Compare GRI to your pricing strategy during the same period(rate shopping tool)- Compare your STR index balance to GRI- Compare your GRI with the competitive set GRI- Compare your forecast occuracy with your GRI variance- Drill down to see how your rooms score-Look at all of these metrics in terms of forward looking indicatorssuch as the rate shopping tools and the predictive forecast sites
  • 10.  3rd analysis from Fernando Vives Soler: Case study of Meliã Hotels International You have to identify the RM tools you can use to have a competitive advantage within a hospitality market more and more challenging and competitive Challenging times because the demand isn’t really growing except in the Middle-East and North Africa How to push the hotel pricing policy? Use the new performance indicator such as the « Quality Penetration Index » (QPI) instead of the traditional and former performance indicators (Market Penetration Index, Average Rate Index, Revenue Generator Index…) QPI= Global Review Index of my hotel / Average Global Review Index of the competitive set
  • 11. Key takeaways Reviews drive revenue The Revenue manager role must become more and more strategic and analytical Review metrics must be integrated as a key component of revenue management strategy Comparison of your review index (with rate, occupancy and RevPar indexes…) is paramount to maximize revenue and stay ahead of competition (finding optimal rates, positioning in the marketplace…)
  • 12. Conclusions Controlling your online reputation is definitely essential and ReviewPro is a great tool to help you do that. Through this competitive tool, you have the opportunity to react more quickly to guests’ feedbacks and find solutions when it is needed. In a word, revenue is directly linked to reputation as a good online reputation with positive guests’ reviews has a positive impact on demand, guest satisfaction and, finally, revenues.

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