Presented to the independent Hotels of Interstate Hotels & Resorts Sales and Marketing COnference New Orleans August 2018

1. INTERSTATE HOTELS & RESORTS – CONVERGENCE OF REVENUE & MARKETING
Loren Gray
CHDM
Founder / CEO
Hospitality Digital Marketing

2. Bringing the Tactical and Strategic: The Convergence of Revenue Management
and Digital Marketing
Bit.ly/hdminterstate

3. Lets Get Warmed Up
Open your iPhone’s “Settings” menu, select
“Privacy”, then “Location Services”, then scroll all
the way down to “System Services”.
In System Services scroll all the way down to the
bottom, press “Significant Locations” and look at the
“History” section. Click on one of the area names to
see where you’ve been.
Sales  Revenue  Marketing

4. Let’s Start From The Beginning….
Sales  Revenue  Marketing
What are we….

5. Today
In an American Express survey commissioned last year, consumers
illustrated their demand for more enriched lives and personal fulfilment
through experience and learning. Over 72 per cent of respondents said
they would rather spend money on experiences than things. Further,
88 per cent said travel is the number one dream on their life’s bucket
list, ranking higher than family or wealth.

6. Sales  Revenue  Marketing
This is how we define our guests

7. This is how most see the ‘cycle’ of our guests
Acquisition
Pre-stay
Engagement – (Stay)
Post stay

8. How can Revenue Management and Digital Marketing create a
symbiotic relationship?
| Analysis
| Optimization
| Forecast
| Price
| Market
| Customer
| Distribution
| Challenges
| Consumers are
getting smarter
| The codependent
relationship with OTAs
| New market disruptors
surfacing everyday
| Customer
| Analysis
| Advertising
| Market
| Price
| Promotion
| Distribution

9. Understanding the Revenue & Marketing Team’s Ecosystem
Known Customer Unknown Customer
Media
Web/Mobile
Loyalty Program
Direct Marketing
Analytics
Revenue Optimization
Acquisition
Direct &
Loyalty
CRM

10. Sales  Revenue  Marketing
Digital Strategy – Guest Acquisition – The Really Short
Version
Stay Date
Research Date(s)
Timeline
Prime Booking WindowResearch Period LOS
January February March
Departure Date

11. Facebook Examples
Sales  Revenue  Marketing
Custom Audiences and
Look-Alike Audiences

12. Sales  Revenue  Marketing
Group dropped 14 days out for entire weekend (62% of Occ)
• Took arrivals list and made a custom audience
• Took last years in-house list same time made a custom
audience
• Made a custom audience based on a radius of 150
miles (drive market)
• Put all three together for an ad featuring those specific
dates, (making the arrivals list a negative)
Group Short Term Replacement

13. Sales  Revenue  Marketing
Stealing Market Share and Driving Local
Business
Gender: Female
Age: 24 - 34
Relationship Status: Single
Interest: Live Music
Located: Within a 5-mile radius
Scheduled to Post: Friday @ 5 pm &
9 pm
Meeting Initiative F&B Initiative

14. Person 1
• Born in 1948
• Grew up in England
• Married twice
• 2 children
• Successful in Business
• Wealthy
• Spends winter holidays in the Alps
• Loves dogs
Person 2
• Born in 1948
• Grew up in England
• Married twice
• 2 children
• Successful in Business
• Wealthy
• Spends winter holidays in the Alps
• Loves dogs
Profiling: What Assumptions Do

15. Now for some REALLY
cool stuff…
Sales  Revenue  Marketing

16. Sales  Revenue  Marketing
New ways to look at Digital Marketing Data and
Revenue Management Strategies

17. Sales  Revenue  Marketing
Sourcing Data to Define Strategies with
GTM

18. Digital Marketing Budget ‘Ground Level’

19. Example of How a Digital Marketing Budget Should Look Like

20. Leads = 10
Conversion Rate = 10%
Sale = $7,500
Frequency – 1
GP = $7500
Leads = 20
Conversion Rate = 10%
Sale = $7,500
Frequency – 1
GP = $15,000
Leads = 20
Conversion Rate = 20%
Sale = $15,000
Frequency – 2
GP = $120,000 (which is 16x $7500)
Double One, Double Growth. Double All – 16X Growth

21. Framework For Successful Analytics: Unlocking Capability
Collaboration
Common
Vernacular
Integrity in Data
TransparencyBuild Trust
Enabling
Business
Decisions
Continuous
Improvement

22. Reporting is “the process of organizing data into
informational summaries in order to monitor how
different areas of a business are performing.”
...Analytics is “the process of exploring data and
reports in order to extract meaningful insights,
which can be used to better understand and
improve business performance.”
The Differentiation Between Reporting & Analytics
What data should
be a part of both?
KPI’s

23. Collaboration
Working together as one
unified team across all
departments involved
with profit optimization
Establishing a committee
to govern the next steps
of the framework

24. Common Vernacular
Common Language
Does customer segmentation really
mean the same thing as marketing
segmentation?
Common KPI’s
Are stakeholders using the right KPI’s
that generate holistic views of
performance at the highest level?
Common Goals
Lowering the media budget to optimize
profit might not be what marketing
wants to hear for next year’s budget,
but do our KPI’s show that this is the
best way forward?

25. Integrity In Data
Identify what data we have
from each respective area that
we can combine into our data
model
Make sure the data is
accurate, consistent &
correctly represents the
common vernacular
established
Do not practice ‘statistical
bending’

26. Transparency
Be open to all consumers of the
information about what the data
“is” and what it “isn’t”
Build visual context around what
the consumers are looking at
Understand what the team has
now and what the team is trying
to build for the future
What is the forecasted revenue
expectations for any particular
channel

27. Build Trust
Buy-in from stakeholders
Trusting that the process
works holistically towards
profit optimization
Rely on team members not
simply oversee
Acknowledge successes
and share failures
Own what is yours

28. Enable Business Decisions
See the big picture across all
data sets being sourced; both
internal & 3rd party
Holistic approach to enhanced
enterprise / property decision
making
Grow your business profitably

29. Continuous Improvement
What did we learn?
How can we improve next
time around?
Fail fast
Team share failures and
debrief them, not hide them
Define performance threshold
metrics with concrete decision
models
Keep an activity log

30. Why Technology & Automation Are Essential to Conversion Optimization
Booking
Engine
PMS
CRS
RMS
CRM
3rd Party Data
Services
Campaign
Management
Conversion Optimization
&
True Customer
Personalization
• PMS delivers historical data on known guest behaviors
(spending history, room preferences, etc.)
• CRS delivers availability for dates of interest
• RMS delivers demand forecast & rate recommendations by
room type
• CRM delivers customer worth & detailed customer data for
known customers
• 3rd party data services deliver detailed information about
the known or unknown guest based on cookies which
include flight information, searches, preferences & more
• Booking engine will be personalized at the customer
level to take advantage of all source systems & data with an
offer tailored to that particular guest for that particular trip
in real-time

31. Social Media A Hospitality Perspective

32. Sales  Revenue  Marketing
Where’s
Brand.com
?
The locations That Count

33. Google has a lot of guides and tools

34. Facebook City Guides
• Who you know
• What they did
• What they shared
• Is anyone around that
you know
• What was there
feedback there reviews

36. Now What? Optimizing Mix Based on Channel Economics
Through which channels can a
guest X book a room?
Given variation in guest economics by channel and property, which channels should
we incentivize guest X to book through?
PER ROOM NIGHT
How much does it cost to acquire
guest X for that channel? $XX $XX $XX $XX
How much does it cost to process
guest X’s room reservation? $XX $XX $XX $XX
How much does guest X spend on
a room?* $XX $XX $XX $XX
Once guest X arrives, how much is
spent on-property? $XX $XX $XX $XX
Tracked Contribution Margins $XX $XX $XX $XX
Brand.com

37. Sales  Revenue  Marketing
Merging Social, Analytics and Emails to
Sales

38. Sales  Revenue  Marketing
Isolating under performing opportunities

39. Four Predictions that are Coming True
Websites will be a thing of the past
The Search Box will go away
“A.I.” will control your marketing
Sales  Revenue  Marketing
Video will become your only voice

40. Bots & API’s
Bots, bots and bots… what’s a ‘BOT’
Google & Apple --- UNLOCKED!!
Amazon Echo – From 16 to 128,000
Sales  Revenue  MarketingMicrosoft – first to be in FOUR MILLION Cars

41. Sales  Revenue  Marketing
Urgency Messaging
“x rooms left”
option
Real Time Prices
Based on dates of
travel
Promotion Messaging
Property
Multi-property
option available
Brand Logo
Stars
Destination Messaging
Dynamic Creative Template for a Real Time Bidding Display Ad
Membership Link
Facebook Brings DAT Mainstream

42. 2011

43. 2017

44. Sales  Revenue  Marketing
GDPR – What is it and are you compliant?

45. Sales  Revenue  Marketing

46. Hyper Local Initiatives
Sales  Revenue  Marketing
Micro Influencers
Gmail –vs- non Gmail
Google Tours

47. Current Stages of Visual Engagement
VR – Virtual Reality
AR – Augmented Reality
360 – Flat Screen View
Sales  Revenue  Marketing
LIVE – ummm Yeah

48. Sales  Revenue  Marketing
The LIVE World Today

49. Links We Discussed
Please view how Facebook is changing the internet..
https://youtu.be/cR_XVGemAnw
This is the whatsapp video from New York Times
https://youtu.be/VAesMQ6VtK8

50. Video, presentation, links, resources
and Webinar are at…
Sales  Revenue  Marketing
https://www.HospitalityDigitalMarketing.com/interstate
OR
Bit.ly/hdminterstate

51. THANK YOU
51
@LorenGray
“For the Privilege of your time”