HF Holidays highlight winter breaks

HF Holidays highlight winter breaks

Tuesday, 25 October 2016 14:00

HF Holiday...

Flybe puts more summer 2017 routes on sale

Flybe puts more summer 2017 routes on sa…

Tuesday, 25 October 2016 11:00

Flybe has put more early release routes on sale as part of its preliminary summer 2017 schedule.

YHA submits plans for London’s first ‘Super Hostel’

YHA submits plans for London’s first ‘Su…

Tuesday, 25 October 2016 08:00

A planning application has been submitted by YHA (England and Wales) to open its first Super Hostel in London.

£2.3million immigration hall upgrade plans at Bristol Airport

£2.3million immigration hall upgrade pla…

Monday, 24 October 2016 14:00

Following a major overhaul of the security search area for departing passengers, Bristol Airport has unveiled plans to address congestion in arrivals.

Intrepid targets socially conscious Gen Z with new Geckos age-range

Intrepid targets socially conscious Gen …

Monday, 24 October 2016 11:00

30 year olds will be ‘too old’ for Geckos Adventures next year, as the Intrepid Group has announced that it will cut the age range to meet a growing demand...

New survey reveals just one in 12 Brits manage to wangle an upgrade

New survey reveals just one in 12 Brits …

Monday, 24 October 2016 08:40

New research from Jetcost.co.uk has revealed that only 8% of British travellers have actually managed to secure a free upgrade for their holiday, with flight upgrades and hotel room upgrades...

Just You launches travel trade solo experience

Just You launches travel trade solo expe…

Friday, 21 October 2016 14:00

Just You has announced its largest investment to support the travel trade with the launch of 200 joint marketing events to promote solo travel.

Spontaneous people are happier according to Snaptrip survey

Spontaneous people are happier according…

Friday, 21 October 2016 11:00

Spontaneous people are often believed to lead more exciting or glamorous lifestyles and a new study has confirmed that they are happier in all aspects of their lives.

Top Brighton attractions on Combi-Saver tickets for half term

Top Brighton attractions on Combi-Saver …

Friday, 21 October 2016 09:00

Visitors to Brighton this October half term can save up to 20% on its top three paid-for attractions with combination tickets now available for British Airways i360, SEA LIFE Brighton...

Free cabin upgrades with Cosmos Tours

Free cabin upgrades with Cosmos Tours

Thursday, 20 October 2016 14:00

There still’s time for agents to book a Croisieurope river cruise for their customers with a free cabin upgrade on a range of river cruises throughout Europe, when booked with...

Last minute autumn breaks available at Haven

Last minute autumn breaks available at H…

Thursday, 20 October 2016 11:00

Agents can still give their customers a last minute family break this autumn from £99 when booking a Haven holiday between now and November 5.

Skiers urged to head east for best piste costs reveals new report

Skiers urged to head east for best piste…

Thursday, 20 October 2016 08:00

Cash-conscious skiers can avoid the slippery slope of higher prices for their annual downhill trip by heading to ski resorts in Eastern Europe.

Design an anniversary poster for DFDS competition

Design an anniversary poster for DFDS co…

Wednesday, 19 October 2016 14:00

Ferry operator, DFDS, is putting out a call to professional and amateur artists to create a poster that will be used in their 150th anniversary celebrations this year.

Savings on worldwide adventures with Explore

Savings on worldwide adventures with Exp…

Wednesday, 19 October 2016 11:00

Explore has launched a new collection of worldwide adventures with a launch offer of up to 10% discount on all new trips booked by November 7.

New route to Seattle makes it one to watch for 2017

New route to Seattle makes it one to wat…

Wednesday, 19 October 2016 09:12

Seattle is expected to be one of the fastest growing US destinations for UK travellers next year with a Virgin Atlantic direct non-stop daily flight launching March 2017, new hotel...

Air Transat launches 2017 programme with increased connections across Canada

Air Transat launches 2017 programme with…

Tuesday, 18 October 2016 14:04

Air Transat has expanded its programme of flights from the UK to Canada with increased capacity and connections for travel in 2017.

As the distribution landscape becomes increasingly complex and fragmented, hoteliers in all segments are faced with the need to measure net contribution from each channel, and make the right revenue management decisions in order to optimize channel mix and overall profitability.

The recent consolidation among the major OTAs is understandably causing concern about potential increases in already high commission levels. Simultaneously, burgeoning vacation-rental availability has started to impact leisure demand for hotel rooms, especially in major markets. There is a distinct need for new automated tools that allow savvy hoteliers to optimize their pricing and manage their distribution mix at increasingly granular levels with a positive impact on their top and bottom lines.

LodgIQ algorithms apply machine learning to extensive hotel and external data sets, and automatically optimising business mix based on net channel contribution and profitability. While hotel direct channels such as their own website and call centers tend to have the highest profit margins, luxury travel agencies are a very desirable channel for most hoteliers, not only for their moderate commissions but also their ability to deliver high rates and quality customers.

Generally speaking, travel agencies provide lower room distribution costs to hoteliers than the commissions charged by the major OTAs and the various middlemen that support 3rd party distribution to the OTAs. Further, guests who work with luxury travel agencies are more likely to be less price-sensitive and seek managed experiences, and are thus less likely to experiment with a peer-to-peer vacation rental. For hoteliers whose product is in the four- and five-star range, luxury travel agencies such as Virtuoso and their affiliated companies who are experts at selling the value of the experience of the stay, often provide much higher room rates at significantly lower commissions. Further, assuming the hotel delivers the promised experience, these guests represent a significant opportunity for repeat, high-revenue business.

With all of that said, the hotel’s own website and call centre are definitely the most profitable. Experienced hoteliers that have already invested in a quality web experience and wholly-owned or outsourced voice support can take advantage of the low cost of direct distribution through a variety of marketing techniques but the decision to buy direct will always come down to the prospective customer being offered the “optimal” price per room that fits his or her buying behavior and specific price-elasticity, which is only feasible through a sophisticated, automated Revenue Management system.

The best solution for hoteliers is to offer a combination of rates, often with right place/right time promotional offers that match the precise buying signals of each traveler, better and faster than the competition. Revenue management systems, such as LodgIQ, that provide data on historical demand and booking patterns, channel optimization, awareness of local events and competitors’ pricing, and a real-time scan of vacation rental demand in the immediate vicinity, give hoteliers the power to best balance their channel mix without sacrificing occupancy or ADR opportunity.

The changing ecosystem requires hoteliers to take more control of their commercial practices, specifically in terms of offering the best price – on their own terms – to the market via the channels that allow them to realize the best mix of high occupancy, high rates and high profit margins. And, in this new world, it’s more important than ever for sophisticated revenue management tools to push the boundaries of data science-based pricing optimization and channel mix management to achieve optimal profitability per available room.

twn Are you sure that you want to switch to desktop version?