In the hotel industry, hoteliers and marketing managers face a multitude of challenges. From marketing and budgeting decisions to choosing the right distribution channels and setting the right rates, these are just a few of the aspects that must be considered in hotel distribution. All too often, however, these decisions are made based on instinct and intuition without sufficient data and facts. The result is uncertainty in decisions, no basis for evaluation in the event of unsuccessful results and, most importantly, difficulty in optimizing occupancy and revenue.
The solution lies in data-driven marketing for hotels. By accessing existing guest and reservation data from the property management system (PMS) or hotel management system (HMS), hotels can analyze guest and booking behavior and derive insights and concrete actions for their hotel marketing. This data forms the basis for informed decisions and enables targeted optimization of marketing and sales strategies.
Focus on improving occupancy rates and revenue
Achieving the highest possible occupancy rates at optimal rates is paramount in the hotel industry, as it ultimately determines the success and revenue of the hotel. To optimize occupancy, targeted online marketing and an efficient sales strategy are essential. Occupancy can be increased through targeted digital hotel marketing, strategic distribution of rooms across different sales channels, and appropriate pricing. By analyzing demand and competition, hotels can use revenue management to adjust prices to offer the best value for money.
In addition, revenue can be increased by driving incremental sales, such as up-selling and cross-selling within the hotel. This can be done through upselling, such as offering an upgrade to a higher room category, or through cross-selling, such as the additional sale of a spa treatment. Targeted communication of these offers by the hotel, both before and during the stay, can encourage guests to take advantage of these additional services and increase revenue.
Transparency and measurability at the center of hotel marketing
Transparency and measurability are the foundation for targeted, data-driven marketing efforts. It is important to analyze how many bookings were generated by specific marketing activities, how many new guests were acquired as a result, and what specific booking revenue was generated by these activities. Through innovative tracking and data analysis, the profitability of hotel marketing can be measured in terms of bookings generated, reservation inquiries, value added, or return on investment (ROI). This measurement of success goes beyond traditional marketing indicators such as impressions, reach, and clicks.
As a result, the marketing budget can be used in a more targeted manner and money wasted on unprofitable marketing activities can be avoided. The measurability and transparency of marketing makes it possible to evaluate the efficiency and profitability of the various marketing activities, and thus to invest only in measures that can be proven to generate success.
In addition to marketing, pricing is a critical factor in a hotel's success. Yet many hoteliers still make pricing decisions based on instinct. This can have disastrous consequences for pricing and hotel performance. If the price is set too low, full occupancy may occur too early and the hotelier loses the opportunity to adjust the price for certain periods. As a result, the hotel misses out on potential revenue, especially when demand is very high. In addition, pricing too low can create a false image in the minds of guests, who often associate price with quality and service.
On the other hand, pricing too high can create a lack of demand and leave the hotel empty. If guests perceive a hotel's individual value proposition as inadequate, they may choose a cheaper alternative. This can lead to low occupancy and a loss of revenue.
Software solutions for digital hotel distribution
Specialized software solutions for the hotel industry help hoteliers make data-driven decisions to optimize their marketing and sales strategies. They provide measurability and transparency to improve hotel performance and ensure long-term success.
Designed specifically for the hotel industry, ADDITIVE's Online Marketing System enables data-driven online marketing efforts tailored to the needs of hotels. Using innovative marketing software such as ADDITIVE+ MARKETING AUTOMATION, guest and reservation data from the hotel's property management software or PMS is used to deliver targeted marketing and personalized guest communications – without additional manual effort for hotel staff and hoteliers. The system provides 100% measurability and transparency, allowing hoteliers to accurately assess marketing profitability and success. By evaluating the results, they can make informed decisions and allocate their marketing budget to those activities that truly drive revenue and value to the hotel. Marketing in the hotel industry is no longer a "black box," as measurability and data-driven actions provide in-depth insight and accountability throughout the online marketing process.
Matthias Ganter, hotelier and investor of the Moselschlösschen Spa & Resort, shares his experiences with the ADDITIVE's Online Marketing System especially for hotel marketing in the video: Success Story—ADDITIVE’s Online Hotel Marketing System at Moselschlösschen Spa & Resort.
"Within half a year we were able to achieve 550 direct bookings, we generated 4,700 guest inquiries and in other words we achieved an ROI of 1,300%."
- Moselschlösschen Spa & Resort (Traben-Trarbach, Germany)
In the area of pricing, there are revenue management software solutions that can help hoteliers in their day-to-day operations. Hoteliers often rely on the European market leader RateBoard. RateBoard's revenue management system uses data to generate the optimal room rate on a daily basis and additional forecasts for each individual arrival day. This enables the hotel to implement a sound, data-driven pricing system. In addition to increasing revenue and optimizing occupancy, revenue management systems such as RateBoard enable hotels to simplify daily processes and save time.
For a detailed overview of all the benefits of RateBoard revenue management system, click here: RateBoard Features.
Conclusion: What are the specific implications for hotels?
Digital hotel distribution presents hoteliers with new challenges every day. Instinct in choosing the marketing budget, the right distribution channels and the optimal pricing may lead to lucky hits, but they do not provide security for a hotel's sustainable development. To ensure long-term success, it is essential to be based on numbers, data and facts.
The solution to this challenge is the use of data-driven marketing and sales software solutions. Using existing guest and reservation data from the hotel PMS, hotels can analyze guest and booking behavior and make informed decisions. The measurability and transparency of hotel marketing makes it possible to evaluate the success and profitability of certain measures and to use the marketing budget in a targeted manner to optimize hotel occupancy. Pricing should also be based on facts and data to achieve optimal occupancy and revenue for the hotel.
Hoteliers should move beyond instinct and make their digital hotel distribution data-driven. Hoteliers can only ensure their long-term success with numbers, data and facts. Innovative systems and software solutions, such as those from ADDITIVE and RateBoard, help hoteliers improve their hotel marketing performance and optimize their rates. With industry-specific solutions, hoteliers can work on their occupancy and pricing and achieve maximum profitability through the interaction of both factors.
ADDITIVE supports hoteliers with innovative marketing software in the field of marketing automation for hotels and as a professional partner in digital hotel marketing.
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