WHAT IS REVIEW PRO?• Founded in 2008• Review Pro has thousands of hotels in more than 70 countries (Louvre hotel group, Corinthia hotels, Four Points hotels, Crown Plaza…)• Founded with the idea that social media could be used to increase revenue growth• The webinar was done with the participation of 7 experts.• Host Daniel Edward Craig brings in the experts to discuss highlights of the research, its implications, and how hotels can use this data rate, distribution channels and revenue.
GLOBAL REVIEW INDEX• The Global review index is the « Online guest satisfaction index »• Used for an independant hotel, hotel chain, group…• Based upon a proprietary algorithm based on quantitative analysis of data from all major OTA’s and review sites.• Analyse review from more than 90 OTA’s• Hard to be able to track the level everytime• GRI: Barometer to track performance compared to the competition and improvement of an establishment• Can be viewed for for any time period.
RESULTS FROM GROUND-BREAKING RESEARCHON REVIEW• UGC Media/ Impact on hotelperformenceUGC: Impact at point of purshase- UGC (User generated content ) covers a range of media content available in a range of modern communications technologies.Example of Travelocity:- Data from major N America OTA- 9 US cities- Detailed property level information of purshased and not purshased hotels- Estimates logistic regression upon purshase decision (price, star, location..)BENEFITS:- Increase the review score- Increases the odds of being booked- Can increase price
In other words,- ADR, Occupancy and Revpar : essential elements to take into account- User generated content/review scores an important part of research process- Online reputation: High corelation with the pricing power- Consumers communicate a lot with social contents (trip advisor, travelocity, expedia, social networks..)
INTEGRATING REVENUE METRICS WITH REVENUE MANAGEMENT• RM reality- New synergy for an optimal/efficient RM: Correlations between Marketing (demand creation), Sales (demand capture), and RM (demand management)- Then, the RM manager needs to be aware of the other departments and to understand their functionning- 3 generations of RM managers: Gen 3 are the more efficient according to the social context (aware of everything)- Few weaknesses: The lines of segmentation have become blurred, strategic pricing more and more difficult to establish, continual focul on external vs internal matrics.• Focus:- Purshase logic: Value based on price and not on the product itself, in other words, Value= Price + product (service & quality)- Indexes of review sites provide pricing signals
• Enables you to know your rating on Trip advisor, on the OTAs, Expedia..• How would the hotels use these metrics? Revenue management orientation:- Compare variance month over month- Compare GRI to the pricing strategy of my hotel for the same period- Drill down to see how my rooms score- Compare my forecast accuracy with GRI variance…• See the correlations between the indexes (variance index, reveue index, ADR index..)
CASE STUDY ON USING THE REVIEW METRICSIN REVENUE DECISIONS• Case study of Melia hotel International:• At the moment the market of hospitality is very challenging, lot of competition• Identify the RM tools we can use to have a competitive avdantage• Main aim: Occupy the RevPar• Demand isn’t really growing except in Middle east and north Africa• How to push the hotel pricing policy?- Leave the former performance indicators and use the new ones-----more efficient (Quality penetration index (QPI))• Revenue and quality indexes must be used and interpretated simultaneously for a better result and more efficient performances.
KEY TAKEAWAYS• Reviews drive revenue- OTA study: 1% increase in review in review score increases demand by 13,5%- STR review pro study: 1% increase in review score leads to average increase in RevPar of 1%• Revenue Manager role: More and more analytical and strategic• Review metric: Must be integrated as a key component of revenue management strategy• Importance of comparison in order to remain competitive (by the comparison of RevPar, and occupancy indexes, review index..) to find the good price.
CONCLUSION• Review Pro enables the hotels to manage their online reputation to a high level of detail• The the establishments/groups/brands a great opportunity to repidly respond to issues!• Very helpful assistance to be always more competitive, find and use the best tools, orgaization strategy.