3 tips for outperforming your competition
by Julia Rey - 28 January, 2022
Faced with constant uncertainty in the international hotel market, we must look for strategies to differentiate ourselves from our competitors and be more attractive.
It is a fact that the hotel market continues to struggle to cope with an instability that is not likely to be resolved in the short term. In this context, hotel businesses are looking for creative and innovative ideas to differentiate themselves.
In Revenue Management, in my opinion, it is not necessary to reinvent oneself, but to focus on strategies that work. Today I bring you three tips that will help you differentiate yourself from the competition and be more attractive to your customers.
- Work on your segmentation to personalise your offer.
- Adopt technologies that allow you to focus on strategy.
- Empower your team and align the different departments.
Work on your segmentation to personalise your offer.
As we know there are many ways to segment and we must analyse which characteristics are the ones that interest us and if we need to combine different types of segmentation depending on the objectives we are pursuing.
As we mentioned in this article, when we combine different types of segmentation, we can organise it into groups and subgroups. Segmentation allows us to identify groups of potential customers who behave in a similar way to the marketing strategies and who are looking for similar products.
In this way, by obtaining information about the behaviour of each of these groups, we can identify who our target customer is. This opens up the possibility of offering personalised experiences in all phases of the purchasing process: price, expected quality, the booking process, the experience during the stay, the services included, etc…
The level of personalisation will make your product more attractive to your customers, and will also boost customer loyalty.
Adopt technologies that allow you to focus on strategy.
Optimising revenue is not just a question of pricing. Technological tools help to better understand the business, monitor demand and competition, perform different types of forecasting, and recommend strategies to follow to improve results. The data science methodologies provided by an RMS provide descriptive, predictive and prescriptive analysis, turning Revenue Management work into an intelligent process aimed at deciding the best strategies to help improve the present and future of the business.
There are multiple reasons why you need an RMS. Reviewing and optimising your hotel management technology ecosystem will allow you to optimise your team’s time and automate operational tasks. This allows revenue managers and the sales force to focus on decision making and strategic planning.
Empower your team and align the different departments.
When the culture of revenue management extends across the business, the RMS becomes a central tool, providing a holistic understanding of the business that is useful to everyone and eliminating information silos.
Training your employees, providing them with information management tools and creating a company culture focused on common goals will make departments work in alignment.
The Revenue Management department is no longer an island in the middle of the hotel offices, but an organisational culture that cuts across all departments, from the general manager to the housekeepers. Keeping Marketing and Sales aligned with Revenue Management will make the team work more efficiently towards achieving strategic objectives.