Show Me The Money!


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Show Me The Money!

  1. 1. Find Me the Money!<br />CeCe Kiefer<br />Kiefer Consulting Group <br />
  2. 2. CeCe Kiefer <br />
  3. 3. 2009<br />“Meeting and Business travel slump a problem of perception”<br />Hotel -US ends up ’09 with double digits RevPar drops <br /> Revenue per available room fell 16.7 percent to US$53.71 during 2009, according to year-end reports from Smith Travel Research (STR). The industry’s occupancy fell 8.7 percent to 55.1 percent for the year and average daily rate dropped 8.8 percent to US$97.51<br />Room rates slumped 8.8 percent, according to STR data.<br />“Good riddance to 2009, a year which we believe will go down as the worst in the modern hotel industry,” <br />said Mark Lomanno, president at STR.<br />
  4. 4. 2010<br />“Cautious Optimism” <br />A recent USA TODAY/Gallup Poll showed only 16% of respondents plan to fly more or stay more often in hotels this year than they did in 2009 —<br /> with about 30% saying they&apos;ll travel less often. <br />Rise of the real-time Web: <br />“In the still rapidly expanding online world, instant gratification is even easier to obtain: ‘Digital’ has become synonymous with ‘instant,’ ” says Reinier Evers of the trend tracking site With nearly half of U.S. adults using social networking sites, expect more time-sensitive “flash sales” offered via Facebook or Twitter, more real-time postings of travel experiences, and faster response from companies and Internet<br />“Plan your work and work your plan,” <br />
  5. 5. 09’ Overview<br />Discussion<br />How was 09’ <br />What was the occupancy 09’?<br />Vs. 08’?<br />RevPar?<br />How did bookings differ from 08’ to 09’?<br />Did you spend more in Marketing<br />What percentage was ad vs. online?<br />Social Marketing<br />What would you have done different in 09’?<br />
  6. 6. Outline<br />Recognizing your competition (individual hotel vs. whole city)<br />Yield Management<br />Rate Integrity<br />How to bring business to your own website versus the OTA&apos;s. What that means to your bottom line<br />Which specials work so you don&apos;t give up your revenue?<br />Website placement - What works and what doesn&apos;t<br />
  7. 7. Recognizing your competition Individual Hotel vs. Whole City<br />How do you determine who your competition is?<br />Size<br />Star Rating<br /> Location<br />Convention/Meeting Hotel<br />Amenities<br />
  8. 8. Recognizing your competition Individual Hotel vs. Whole City<br />Leisure dominated markets *<br />Location: city, tourist attractions, event centers, ect.<br />Amenities including Meeting facilities, attractions, restaurants, ect.<br />Rates<br />Transportation<br />* Timeshare and Condo/Hotels included in this mix<br />
  9. 9. Recognizing your competition Individual Hotel vs. Whole City<br />In a 09’ economy and I believe in 10’ your competition is the whole city.<br />When supply is up and demand is down you must differentiate yourself.<br />Research is key to your success<br />Be Proactive vs. Reactive<br />
  10. 10. Yield ManagementMake or break you<br />Proactive vs. Reactive<br />Research<br />Assistance<br />
  11. 11. Yield ManagementMake or break you<br />Proactive vs. Reactive<br /><ul><li>Manage rates daily, hourly if need be
  12. 12. Manage your inventory
  13. 13. If you have specific formula for yielding REVISIT IT!
  14. 14. Train multiple employees
  15. 15. Numbers
  16. 16. Rates
  17. 17. Reservation into call center
  18. 18. How to change rates on multiple channels</li></li></ul><li>Yield ManagementMake or break you<br />Research<br />Call Around- See what your competition is selling at<br />Research the OTA’s sites and utilize their reports<br />Individual Hotel Websites-Look for special events, specials they are offering, and amenities<br />
  19. 19. Yield ManagementMake or break you<br />Assistance<br />Programs for assistance:<br /><ul><li>PMS Systems:
  20. 20. Independent Companies:</li></ul> Rate Guru<br /> Rate Tiger<br /> EZ Yield<br /><ul><li>OTA’s reports</li></li></ul><li>Yield ManagementMake or break you<br />Guidelines<br />Stay competitive but aggressive<br />Decide if you want to stay structured with a specific formula or if market warrants raising rates with competition<br />Give your managers/employees (empowerment) the freedom to adjust based on selling patterns within the market and your competition<br />Manage your inventory<br />Must yield till the last room is sold! <br />
  21. 21. Rate Integrity<br />RESEARCH, RESEARCH, RESEARCH<br />Contact companies that disregard your rates<br />Opaque Selling- <br />Don’t disregard. Can be key in 2010<br />
  22. 22. How to bring business to your own website versus the OTA&apos;s. What that means to your bottom line<br />Make site very user friendly<br />Always offer an exclusive package on your website<br />Call to action on front page of your site<br />Sweepstakes page<br />Email sign up<br />Exclusive offer or rate<br />Easy access to your reservations booking page on each page of your site<br /> Google ad/ads <br />Paid ads like Google,TravelZoo, MSN, Yahoo, Facebook,etc. <br />
  23. 23. Which specials work so you don&apos;t give up your revenue?<br />Buy two get one free (high average stay)<br />Waive resort fee, internet connection fee, ect.<br />Think out side the box-What do you offer that others don’t<br />Continental breakfast and/or Afternoon tastings<br />Special event or activity<br />Transportation<br />Amenity<br />
  24. 24. Which specials work so you don&apos;t give up your revenue?<br />Advance booking discounts<br />Stay now receive a free night upon<br />your return (stipulations with return visit)<br />
  25. 25. Website placement - What works and what doesn&apos;t<br />Links<br />.org and .ed <br />Directories- Google, MSN, Bing, Yahoo, etc.<br />Social Marketing- Facebook, Twitter, MySpace, Flicker, Friend Feed, <br />
  26. 26. Website placement - What works and what doesn&apos;t<br />Google Ads- They are free! <br />Create many and point back to your website<br />Specials in the ad <br />Keep it short and to the point<br />Special events including area attractions <br /><ul><li>Examples of Google Ads tag lines for Kissimmee hotels</li></ul> Discount Hotel Kissimmee Disney<br /> Discounts Kissimmee-rates from$69<br /> Disneyworld Hotel Kissimmee<br /> Orlando/Kissimmee Hotel<br /> FSHAA Hotels in Kissimmee<br /> Titans Pro Lacrosse Kissimmee<br /> ESPN Kissimmee-Great Rates<br /> Spring Training-Kissimmee Rates<br />
  27. 27. 2010 What is being said<br />Strategy: In 2010, the real bargains will likely be on the ground, and savvy shoppers would be wise to start any search by looking for great hotel deals and worrying about airfare later. Most travelers take the opposite approach—airfare first, hotel almost as an afterthought—but unstable fare pricing in 2010 suggests this may not be the way to go. In fact, this is a good year to base your destination choices on price, since some destinations may offer deals too good to pass up.<br />Lastly, take a long look at vacation packages this year. For the same reasons above, online travel agents like Expedia and Travelocity will look to sell bundled packages as a way of clearing unsold hotel inventory. This desperation could lead to some pretty good deals on vacation packages, especially in some of the harder hit U.S. cities.<br />
  28. 28. 2010 What is being said<br />Institutions fearful that negative opinions will go viral<br />PricewaterhouseCoopers expects that average daily rates (ADR) will continue to decline in 2010. This rate weakness is expected to be off-set by a 1.1 percent increase in occupancy, resulting in stable RevPAR levels in 2010.<br />Flat is the new up!<br />
  29. 29. RECAP<br /> Be Proactive vs. Reactive<br />Multiple ad’s on Google, MSN, Bing, link to other sites and vise versa for top positioning <br />Social Marketing<br />Research, Research, Research<br />Continuous booking pace analysis to maximize RevPar<br />Monitor & control real time inventory  <br />Give employees empowerment to change rates<br />Always partner with your CVB on any specials, advertising, and any other promotions<br />