In an era where the guests’ needs and requirements are evolving, hotel CEOs are called upon to pivot from traditional revenue management tactics to a more nuanced guest-centric approach.
NB: This is an article from Demand Calendar
The key to sustained profitability is an intimate understanding of the guest experience and its direct influence on financial outcomes. Central to this evolution is a shift in revenue management focus—from mere capacity to customer-first strategies.
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A hotel’s online reputation has become its most valuable asset in the digital sphere. Each review and rating weaves into the broader story of the brand, compelling potential guests toward or away from a booking decision. Beyond attracting guests, an excellent online reputation directly impacts a hotel’s pricing power. The better the reputation, the higher the premium a property can command. It’s a simple equation: trust breeds loyalty, and loyalty drives profitability.
How to achieve the best reviews
Achieving high ratings, reviews, and scores from guests is predominantly a result of offering an exceptional guest experience. By starting with the reason for travel and then delving deeper into specific traveler segments, hotels can craft a guest journey that resonates deeply, enhancing satisfaction, loyalty, and profitability. This holistic approach ensures that the hotel’s offerings are not just generic but are thoughtfully tailored to the needs and preferences of its guests. Let’s start with the travel reasons.
Reason for Travel: The Cornerstone of Demand
The fundamental question is at the heart of understanding demand in the hospitality industry: Why do people travel to a particular destination? The reasons are varied and often interconnected, but they can generally be categorized into a few broad areas.
- Leisure: This encompasses vacations, sightseeing, relaxation, and general tourism. Leisure travelers might be drawn to a destination’s attractions, natural beauty, or cultural experiences.
- Business: Business travelers visit a destination for work-related reasons. This can range from attending conferences and meetings to longer-term project work.
- Events: Whether it’s a major sports event, a music festival, a convention, or a local cultural festivity, events can be significant travel drivers.
- Personal: This can include visiting family or friends, medical reasons, or even personal milestones like weddings or reunions.
- Transit: Some travelers might be in a destination for a short period, perhaps as a layover between flights or as a stopover during a longer journey.
Weekday vs. Weekend Dynamics
For many destinations, the reason for travel can fluctuate significantly between weekdays and weekends. For instance, business travel might peak during the weekdays when conferences, meetings, and corporate events are in full swing. Conversely, weekends might surge in leisure travelers or those visiting for personal reasons. Understanding the destination’s dynamic is crucial for hotels as it affects occupancy rates, room pricing, and the types of services in demand.
Refining guest segments
Once a hotel understands why people travel to its location, strategic decision-making is next. Focusing on every kind of traveller might spread a hotel’s resources thin, potentially leading to a diluted guest experience. Instead, by pinpointing specific segments that align with the hotel’s brand, facilities, and strengths, a hotel can offer a more tailored and memorable experience. Here are a few variables to help hotels find the perfect guests.