About this Episode
In this episode, Laurence Bernstein, Managing Director of The Bay Charles Consulting Company explains where revenue management and marketing are disconnected and what these two functions can learn from one another.
You will learn:
- Why increased synergy between these two functions can drive more bookings
- How price discrepancies on different websites and over the phone can damage your hotel’s value proposition
- How to integrate price and how your property is brought to market
Click for Video Details
- Episode #13
- Posted on November 2, 2009
- Duration: 11:21
- Captions:
what can revenue management and marketing learn from one another?
fundamentals of marketing: four P’s = product, promotion, price, place
marketing is out of the picture on price and place
revenue management responsible for rates and occupancy
need integration between price and how property is brought to market
there is certainly a lot of room for synergy
revenue management and marketing see themselves as separate functions
reservations is typically separate and reports to an operational function
in some hotels, reservations reports to sales
different prices on different websites and over the phone
consumers willing to take advantage of price offers over more important aspects
if marketing included all four P’s there would be strategic pricing and higher margins
price has forced consumers to value of the hotel room
how can a hotel communicate value regardless of price inconsistencies?
confusion about price to is a barrier the next stage - judgment of where to stay
make a case as to why your hotel is the one that people would want to stay at
lower per night rate offered when booking two nights as opposed to four
consumers save money by making two separate bookings
in this case, consumer’s inspiration to book your hotel has gone away - Embed Link:
2 Comments
Very insightful indeed! Thanks.
I am assuming something similar exists with airline bookings as well. Are there industry verticals or categories that do a great job of minimizing this “costly” gap?
Thanks for the short video on RM. I am familiar with Mr. Bernstein, and his lectures. My only concern is that to the smaller properties around the globe. They don’t have the luxery of a marketing department. I often speak at smaller properties on the subject of RM, and the first thing i encounter is that most smaller properties consist of a manager and no other exec between him and staff. These properties need help in todays Tech Revenue programs. This might be a good idea to have a program for them. Food for thought.
Thanks
Alan
3 Trackbacks
Social comments and analytics for this post…
This post was mentioned on Twitter by VFMLeonardo: New Video – VTV Channel – The Integration of Revenue Management and Marketing – http://bit.ly/1eXhHH...
[...] This post was mentioned on Twitter by VFMLeonardo, HSMAI Curacao. HSMAI Curacao said: RT @VFMLeonardo: New Video – VTV Channel – The Integration of Revenue Management and Marketing – http://bit.ly/1eXhHH [...]
[...] The Integration of Revenue Management & Hotel Marketing [...]