Hotel Website Marketing Conference
               2010


    Presented by: Cheryl Hawksworth
IDeaS Global Team




                    Minneapolis, MN
Congratulations if you survived!



    Its now about Recovery
    rather than Survival *

    2011 presents an
    Opport...
Back in 2009/10…….


1. Think Strategic and Structured

2. Provide Guidance to Your Sales Team

3. Manage Your High Volume...
Irish Market

 Dublin, Ireland, reported the largest ADR decrease, falling
 13.4% to EUR77.15, followed by Budapest, Hunga...
For 2011/2012


1. Where will You Be when Demand Comes Back!

2. Understand Your Pace

3. Price for the Long-Term

4. Opti...
Where will You Be when Demand Comes Back!
Where will You Be when Demand Comes Back!


  PKF: Double Digit RevPar
  increases not until 2012

  Depressed Pricing lev...
Understanding Your Pace
Understanding Your Pace


   Rooms Sold – Corporate - Monday   Forecast Rooms Pace



                                    ...
Understand your pace in-depth
• By Day of Week
• By Segment
• Seasonality
• Market Circumstances

Pace drives strategies
•...
Price for the Long-Term
Find Your Pricing Spectrum




     The goal is to understand the demand
 characteristics of products, and guest sensitivi...
Is this the time to start thinking about price increases?


   Well – it depends…
    • Owners want it
    • Sales think m...
Optimise Your Base Business
Build a Better Base

Don’t regret the decisions you make today
• Group & MICE business has a significant long term effect
...
Maintain Flexibility
This is not the time to get locked into long
term contracts

Demand will be back in 2011 – or 2012 – or 2013?
Or it is bac...
Balanced Middle Ground



         Pre 9/11                                                                               ...
Data to drive Decisions
Using the Right Tools

Use data to drive your decisions
 • Fact based non emotion
 • Changes ‘I think we should’ to ‘I nee...
Get connected
IDeaS Major Integration Partners


Property Management Systems
IDeaS Major Integration Partners


Central Reservation and Distribution Systems




Rate Shopping and Rate Distribution Sy...
Dare to Win!
Thank You
      Cheryl Hawksworth
cheryl.hawksworth@ideas.com
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IDeaS Revenue Management

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IDeaS Revenue Management

  1. 1. Hotel Website Marketing Conference 2010 Presented by: Cheryl Hawksworth
  2. 2. IDeaS Global Team Minneapolis, MN
  3. 3. Congratulations if you survived! Its now about Recovery rather than Survival * 2011 presents an Opportunity to Shine Run as fast uphill as you did downhill! • *for some
  4. 4. Back in 2009/10……. 1. Think Strategic and Structured 2. Provide Guidance to Your Sales Team 3. Manage Your High Volume Accounts 4. Maintain Consistent Pricing 5. Research Any Competitor Movements Carefully 6. Forge Closer Relationships with Your Distribution Partners 7. Sell on Value – Not Price
  5. 5. Irish Market Dublin, Ireland, reported the largest ADR decrease, falling 13.4% to EUR77.15, followed by Budapest, Hungary, with an 11.5% decrease to EUR64.57. Occ up 3.2%, Revpar down 7.7% (to May 10) NAMA – upto 100+ hotels could be managed. Bank of Scotland pull out end of 2010 – how many hotels with loans affected? The outlook for Ireland’s hotels continues to be pessimistic, though slightly less so than six months ago, and it will need to re-stabilise before it becomes an attractive investment option once again. Source: STR Global
  6. 6. For 2011/2012 1. Where will You Be when Demand Comes Back! 2. Understand Your Pace 3. Price for the Long-Term 4. Optimise Base Business 5. Maintain Flexibility 6. Use Data to drive decisions 7. Get Connected
  7. 7. Where will You Be when Demand Comes Back!
  8. 8. Where will You Be when Demand Comes Back! PKF: Double Digit RevPar increases not until 2012 Depressed Pricing levels “Shell-shocked” Now is the time to set your strategies! • Knowledge/Understanding/Expertise • Business/Scenario Planning • Long-term vision & strategies
  9. 9. Understanding Your Pace
  10. 10. Understanding Your Pace Rooms Sold – Corporate - Monday Forecast Rooms Pace 30% ahead of target 45 90 135 Today Days to Arrival
  11. 11. Understand your pace in-depth • By Day of Week • By Segment • Seasonality • Market Circumstances Pace drives strategies • Rate changes • Yield Restrictions • Reduced value-adds • Promotional Tactics
  12. 12. Price for the Long-Term
  13. 13. Find Your Pricing Spectrum The goal is to understand the demand characteristics of products, and guest sensitivity to pricing to define a rate spectrum that will capture the maximum revenue.
  14. 14. Is this the time to start thinking about price increases? Well – it depends… • Owners want it • Sales think market is not yet ready • General Managers don’t want to risk the first signs of better business Whatever you think – think strategic • Price/Value/Benefit relationship • Based on sound forecasts • A logical and long term strategy that everyone understands (but not necessarily likes) Use competitive benchmarking and rate shopping tools extensively Evaluate your strategy frequently
  15. 15. Optimise Your Base Business
  16. 16. Build a Better Base Don’t regret the decisions you make today • Group & MICE business has a significant long term effect Robust long-term Forecast “Normalized” demand patterns as reference points • 2006/07/08 • Keep potential future displacement in mind Keep flexibility in your approach • Only confirm T&Cs 10-12 months before event • Over allotment room rates • Cancellation/Wash Rates
  17. 17. Maintain Flexibility
  18. 18. This is not the time to get locked into long term contracts Demand will be back in 2011 – or 2012 – or 2013? Or it is back already – or it is not – or is it? How will you optimise these when(ever) the time comes: • Corporate Contracts • Group Contracts • Wholesale & Tour Series • Distribution Agreements T&Cs Value Adds Pricing Promotions
  19. 19. Balanced Middle Ground Pre 9/11 2001-2004 2004-2008 2008 – 2010 Supplier Power Intermediary Power Sellers Suppliers Lose Lose Control interest in of the Price Suppliers Point Balanced Middle Ground Creating Win Win Situations Source: Jim Young, Vice President and Chief Marketing Officer, Frontier Airlines
  20. 20. Data to drive Decisions
  21. 21. Using the Right Tools Use data to drive your decisions • Fact based non emotion • Changes ‘I think we should’ to ‘I need to’ • Use one version of the truth! Even basic tools can show an ROI • Rate Shopping Tools • Channel Management • Sales Channel statistics (web, gds etc.) The truth, the whole truth, nothing but the truth! • What RM capabilities does your PMS, CRS, Web have? • Can you honestly say you know what to ask for when evaluating these tools? • Get referrals from those who know the back end as well as the front.
  22. 22. Get connected
  23. 23. IDeaS Major Integration Partners Property Management Systems
  24. 24. IDeaS Major Integration Partners Central Reservation and Distribution Systems Rate Shopping and Rate Distribution Systems
  25. 25. Dare to Win!
  26. 26. Thank You Cheryl Hawksworth cheryl.hawksworth@ideas.com

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