A new white paper by Sabre Hospitality Solutions and Phocuswright discusses the decisions hoteliers must make in the channel optimisation process, as well as implement an effective strategy that will maximise the ROI (return on investment) of both direct and indirect channels.
Sabre says the report, Channel Optimization in Hospitality: Secrets of Data-Driven Hoteliers, “will help hoteliers make well-informed, data-driven decisions about their channel strategies and offers insights on consumer trends, along with data analysis, infographics and clear recommendations that hoteliers can put into action right now.”
Here are some key takeaways from the report (infographic below).
Challenges to overcome
The fragmented nature of today’s hospitality industry creates a complex distribution landscape and unique challenges, which hoteliers must overcome to maximise revenue.
Hoteliers need to group common behaviours of shoppers for a targeted approach. (Image credit: Rawpixel/iStock)
- Traditional segmentation is not enough. Hoteliers need to identify the unique behaviours of shoppers, and group those common behaviours together with a targeted approach. Regional variations in consumer behaviours, as well as widespread adoption of consumer technologies and services drive additional complexity and must be addressed.
- OTAs and metasearch engines are investing heavily in advertising and sophisticated technology platforms to capture more traffic and hotel bookings.
- Many hotels continue to rely on legacy technology systems that are not equipped to handle today’s diverse distribution strategies, which call for pricing and product strategies that can change rapidly and easily.
Consumers and technology increase complexity in channel strategy
Advances in technology have changed how consumers shop which in turn affects how hoteliers must market to them. Today’s hotel guests have greater control over their personal travel decisions due to the number of shopping and booking channels, as well an array of devices to research, shop and book.
Alex Alt: “Today’s distribution landscape is highly complex.” (Image credit: Sabre)
There are also wide variations in shopping and booking channel preferences based on geography.
The report’s analysis of shopping and booking trends by channel in countries including the US, the UK, China, Brazil and France finds a customer’s purchase channel does not always correlate with shopping channel preferences.
“Mastering distribution is a bridge to transforming the guest experience and an opportunity to build familiarity and loyalty with the guest before they ever walk onto the property,” said Alex Alt, president of Sabre Hospitality Solutions.
“Today’s distribution landscape is highly complex and that will only increase in the future. No matter the size or location of the property or chain, every hotel needs to have a well-defined distribution strategy – informed by data and analytics – for how they can successfully attract guests across all channels.”
Developing the right channel mix
With the right analytics hoteliers can better engage with guests as individuals. (Image credit: GenerationClash/iStock)
The report suggests three steps for hoteliers to take if they want to master distribution and overcome market complexities:
- Get your data house in order: With the right analytics hoteliers can better engage with guests as individuals, based on explicit and implicit signals shoppers give during the shopping experience.
- Leverage persona-based motivation to understand behaviour: By combining traffic and conversion statistics with consumer trends and regional differences, hoteliers can take a strategic look at their target customers and develop a channel mix that fits their brand.
- Assess channel risk and return: Channel optimisation is not a ‘set it and forget it’ proposition. Hoteliers must consistently monitor and evaluate their channel strategy to more efficiently acquire traffic, then convert that traffic into profitable transactions.
“The investments that hotels make in their channel optimisation and distribution strategies will define the next generation of winners in hospitality,” Alt said.
Download the full report here.
• Featured image credit: RomoloTavani/iStock
