• Research from Cornells Center for Hospitality• Research that highlights the correlation between aggregate guest ratings, as defined by ReviewPros Global Review Index™, and hotel rates and revPAR.
Daniel Edward Craig :• brings in the experts to discuss highlights of the research• its implications• how hotels can use this data to optimize rates, distribution channels and revenue
: Associate Professor, Cornell School ofHotel Administration• He will discuss the results of the Cornell study, conducted in partnership with ReviewPro and STR Global, which examines the correlation between aggregate review scores and a hotels demand, pricing power and revPAR. Co-founder, Buckhiester Management• She will show how to turn this knowledge into power by integrating review metrics into revenue management strategies and tactics.Global Director of Revenue Management, Meliá Hotels International• He will show how Meliá is pioneering the integration of reputation metrics and revenue management to drive higher ADR, demand and guest satisfaction.
The 1st analysis from Cornell University, the first hospitalitymanagement program and now leader in this field:Social media user generated impact on performance:• An important part of the research process• Impact of reviews on purchase decision• Impact of online reputation upon performance ( Occupancy, ADR, revPar)• Impact translated into pricing power demand and overall performance
• Positive correlation between the analysis of good reviews and revenue gains• Increase in reviews score by 1 point(3.8 to 4.8) increases the odd of being booked by 13.5% and can increase the price by 8% and maintain probability of purchase, market share• 1% increase in review score will result in an increase of 1% in average RevPar
The second analysis from Victoria Edwards:• New synergy, new approach of the revenue management, combines 3 points:• the demand creation• demand capture• demand management = optimal RM
• 3generations of RM:• Old view/Generation 1: revenue manager= reservation manager• Generation 2: more sophisticated, more tools, more education• Generation 3: combines all of the elements, technical tools, online marketing and sales functions. The best one= analytical function
• Compare variance month over month• Compare GRI to your pricing strategy during the same period• Compare your STR index balance to GRI• Look at your GRI versus comp set GRI• Compare your forecast accurancy with your GRI variance• Drill down to see how your rooms score• Look at all of these metrics in terms of forward looking indicators such as the rate shopping tools and the predictive forecast sites• In the 3rd analysis, it is a case study which demonstrates how we have to manage the revenue management department and reputation metrics to drive higher ADR, demand and guest satisfaction.
• Quality penetration index or Competitive quality index by review Pro• Allowing to measure the guest reviews performance relative to competitors• Track the direct competitors
• It takes into account the impact of the guests satisfaction in pricing and revenue• Nowadays, reviews are very important for people, they rely on it , and there is a high increase of the User Generated Content, thus we don’t have to neglect their impact• As consequence, the role of revenue manager must become even more strategic and analytical• Review metrics must be used and integrated as a key component of revenue management strategy• To maximize revenue and to stay ahead of the competition, compare your review index with rate, occupancy, and RevPar indexes to find optimal rates and positionning in the market place