Using Revenue Levers to

Drive Profitability

Sold for $28,000

3 levers for successful RM

Direct vs. indirect channels

CRM + RM = ProPAR

SUB  POINT  

Brand image => Perceived value

Value => Rate

Google has rich data sets about guests •  Search provides

information about intent and interests

•  Gmail provide access to loyalty membership/preferences

•  Mobile offers location data

Driving “Limited Offers” product because they

know who the guest is

•  Discounted rate, sold as CPA

•  Tied to hotel loyalty programs

•  Doesn’t violate rate parity agreements as it targets specific, known customer

segments

•  Results are promising, but far too premature to offer conclusive insights

Amazon Local offers to Prime members

Cornell study suggests better

reviews lead to increased RevPAR Pricing  Power  

(ADR)  Demand  

(Occupancy)  Performance  (RevPAR)  

All   +0.8%   +0.2%   +0.96%  

Upscale   +0.67%   +0.19%   +0.83%  

Upper  Midscale   +0.74%   +0.42%   +1.13%  

Midscale   +0.89%   +0.54%   +1.42%  

Measured  change  in  pricing  power,  demand,  and  performance  given  a  1%  change  in  online  reputaMon  Source:  Cornell  Center  for  Hospitality  Research  

Real-world says so, too

•  Achieved top positions in TripAdvisor, Yelp, social channels

•  Occupancy index improved to 95-105

•  ADR index improved to 107-180

•  RevPAR index improved to 109-169

•  Growth above comp set

•  Reduced or held OTA share below 10%

Source: Tim Peter & Associates client data; STR Monthly Hotel Survey; Running 12 months ending March, 2015

3 levers for successful RM

Direct vs. indirect channels

CRM + RM = ProPAR

SUB  POINT  

Brand image => Perceived value

Value => Rate

Thank You

Web: timpeter.com

Phone: 201-305-0055

Email: tim@timpeter.com

Twitter: twitter.com/tcpeter