ReviewPro Webinar Christopher Shadman MBA 2 CMH S
Presentation of ReviewProS Founded in 2008S Thousands of hotel clients Louvre Hotels Group, Crowne Plaza, …S In more than 70 countriesS Goal: To provide our clients proactively manage their online reputation in order to maximize their profitability and gain a competitive advantage.
Presentation of ReviewProS Global Review Index (GRI) Measure online guest satisfaction score for any hotel, group or chain. Gather data from all major OTAs. Track performance of competitors
Social media / UGC Impact on PerformanceS Analysis made by Chris Anderson (Professor from Cornell University) Social media have a direct impact on: Traffic on UGC sites reviews and purchase decisions Online reputation upon performance (Occupancy, ADR, RevPAR) Example: Can increase: Review score by 1 point Odds being booked by 13,5% Price by 8% and maintain probability of purchase
Social media / UGC Impact on Performance Estimate 3 regression models estimating this impact upon: Demand (Occupancy) Pricing Power (ADR) Performance (RevPAR) UGC impact At time of purchase Translated into pricing, demand and performance
Integrating Review Metrics into RMS Analysis by Victoria Edwards (co-founder of buckhiester management) New synergy Demand creation (Mktg) / Capture (Sales) / Management (RM) OPTIMAL REVENUE MANAGEMENT RM approach Generation 1 = Reservation manager / sales Generation 2 = More tools / education / tactical aspect of RM Generation 3 = G.1 + G.2 + online marketing + sales
Integrating Review Metrics into RM Weaknesses Strategic Pricing Demand forecasting Business Mix management Internal vs. External Focus Purchase logic Value = Price + Product Competitive set Indexes from review sites provide pricing signals
Use of metricsS Compare variance month over monthS Compare GRI to the pricing strategyS Compare STR to GRIS GRI vs com set GRIS Forecast vs GRI varianceS Rooms scoresS Rate shopping tools and predictive forecast sites
Case study: Melia Hotels InternationalS By Fernando Vives Soler (Director of RM) Key performance indicators: Market penetration Index (MPI) = Occupancy index Average rate index (ARI) Revenue Generator Index (RGI) Quality penetration index (QPI)
ConclusionS Internal: Increase direct bookings and maximize sales of OTAs Improve the quality and performance increase brand valueS External: Save time and money by centralizing its resources on high value-added services Optimization and reduced operating expenses
Is ORM the Revenue Maximization of the future?S Yes The future generations will be much more focus and sensitive to internet and on online marketing and communication. Online reputation is taking a more and more important place in the global reputation of any hotel or establishment. People are more and more encourage to post reviews, photos, write articles… And these have a direct impact on purchase decisions of future guests. You have to be aware of any rates and index (occupancy, RevPAR, competitors) and see how is your position compared with the market The position of Revenue manager is becoming more and more polyvalent. He has do manage all the aspects of the new generation of RM. Being more strategic and analytical, use review metrics as key component.