2. RELATIONSHIP BETWEEN QGI AND
REVENUE GAINS
Positive correlation between the analysis of global
review and revenue gains
Reviews drives revenue
1% increase in review score will result in an increase
of 13,5% in demand
What’s more prices can increase by 8% with no impact
on market share
1% increase in review score will result in an increase
of 1% in average RevPAR
3. RELATIONSHIP BETWEEN QGI AND
REVENUE GAINS
How to explain this positive causality relationship of
global review and review gains?
User generated content has become an important
part of the research process
Also an impact on purchase path of customers
So increasing demand for the hotel
It can be translated into pricing power
4. PERSON/POSITION RESPONSIBLE FOR
ANALYSIS OF PRICING CHANGES
1st Generation : part of the reservation manager’s job
2nd Generation : revenue management is becoming
more and more technical (use of specific tools
dedicated to this function) the position has to
become distinct
3rd Generation : technical aspects + online marketing
+ sales function the position has to be fully
integrated into the overall executive committee
analytical and strategic role
5. NEW MEASUREMENT USED TO
MEASURE QUALITY SCORES TO
REVENUE PERFORMANCE
Key Performance Indicators :
Before : - Occupancy Index
- Average Rate Index
- RevPAR Index
Now : Quality Penetration Index (QPI).
6. NEW MEASUREMENT USED TO
MEASURE QUALITY SCORES TO
REVENUE PERFORMANCE
Quality Index Penetration : tool that can be used to
compare guest review performance relative to competitors,
using Global Review Index
QPI = Global Review Index of my hotel
Average Global Review Index of competitors
It can help hoteliers:
to better understand their opportunities in terms of volume
and ADR
to find the best position in the marketplace
7. ORM,
THE REVENUE MAXIMIZATION OF THE
FUTURE
Now with the development of User Generated Content, the
customer path has evolved people rely on online reputation to
make a choice.
Because of the online reputation, demand can rise, the optimal
positioning of the hotel can change, the pricing strategy can
evolve, all that in order to maximize revenue.
With online reputation gaining so much influence, it has now
become crucial for hoteliers to take back control over it, and to
find solutions to manage in a way to take advantage out of it.
As a consequence, reputation management position will become
a new strategical function to be integrated in the executive team,
progressively replacing the role of revenue manager.
