Hotel Distribution - Why you need to be "agile" as a hotelier « Sabre Hospita... - 1 views
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The need for agile hotel distribution is more important now than ever, as the hotel industry continues to strategize and map out roads to recovery across every segment of the market amidst Covid.
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We, as an industry, should look at this as an opportunity to better position ourselves, while thinking about both short- and long-term distribution strategies. Hoteliers’ abilities to quickly move – and fail – then pivot, will help lead the way for our industry’s recovery.
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Instead, what does come to mind is the brain power and wealth of tribal knowledge that hoteliers will need to leverage over the next few quarters and years to optimize revenue.
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The first step in getting your organization to wrap their heads around an agile distribution framework is getting buy in from leadership and owners. For any agile strategy to be successful, the organization must require patience and execution across all levels of the organization.
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Your goal is to build distribution and channel strategies for profitability. Hoteliers should look at net revenue per available room (Net RevPAR) or gross operating profit per available room (GOPPAR) instead of RevPAR when making this analysis.
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hoteliers should analyze the total cost of a direct booking by including costs of loyalty programs, website development and maintenance, marketing and social media campaigns, and call centers.
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the who, where and when, but to truly optimize channels for profitability, you must get the “why”. The “why” offers insights on path-to-purchase behavioral data and conversion metrics, which allow customer segmentations for a profitable and deliberate distribution strategy.
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hoteliers should look at the full contribution from each channel and prioritize channels that bring guests with the highest ancillary spend – think Total Revenue Management.
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Hoteliers that stay agile and attentive on pulling the inventory levers within their distribution and channel strategies will lead the way (and lead with rate) to recovery.
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This is an informative article, published by Sabre, on how to utilize certain technologies and stay agile during Covid-19 in the hotel business. It emphasizes how to keep and maintain a hotel during these trying times. Never stopping trying to improve and to keep an eye on all aspects of sale, occupancy, and position in the GDS. It's important to keep everything in the perspective of short and long term solutions.