As a Revenue Manager (RM), digital marketing may not be in your job description. However, many of the digital marketing decisions being made impact revenue, as highlighted in Sojern’s Hotel Management eBook: Maximizing RevPAR.
It’s important, then, to be informed, equipped, and in agreement on how to maximize profitability through strategic marketing initiatives. Here, we highlight three areas where digital marketing has a significant impact on RevPAR and how your teams can work together to maximize your bottom line.
Ensure Rate Parity
Rate parity, or maintaining consistent room rates across all online distribution channels, proves to potential guests that the price on your website is the best price they can get. Ensuring rate parity stops these potential guests from clicking around on third party sites for better deals, helping you drive direct bookings and generate brand trust.
Ensuring rate parity significantly impacts your RevPAR. Whether the Director of Sales and Marketing (DOSM) monitors rate parity on their own, or they use a third party to monitor rates, it’s important that RMs and DOSMs align on rate parity goals. This helps drive direct bookings and ultimately affects RevPAR. Communication is key to success. Ensure both teams have a common understanding around metrics and tools for monitoring rate parity and maximizing RevPAR.
Optimize Your Website for Conversions
Because your website displays room rates, packages, and upsells, it’s crucial for revenue management. Optimizing your website for conversions entices guests to stay with you and makes it easy for guests to book direct. In return, you own the guest relationship from start to finish, allowing you to tell your story and build loyalty.
According to Darlene Rondeau, VP, Best Practices, Online Merchandising at Leonardo,
“Directors of Sales and Marketing can help Revenue Managers understand how consistent visual storytelling across all channels (website, mobile, 3rd party travel channels) helps sell more rooms and command a higher rate.”
Set a joint goal and strategy on how to optimize your hotel’s website, tell your hotel’s story, and ultimately drive more direct revenue.
For additional help, download our ebook, Creating a Website that Converts: The Hotelier’s Guide to Driving Direct Bookings.
Increase Direct Bookings
A recent study concluded that a direct booking could be as much as 9% more profitable than a third party booking and as much as 18% more profitable when taking into account ancillary revenue. Direct bookings also reduce third party booking commissions, increase brand awareness, and build a guest information database. This is a great way to create loyalty and increase the lifetime value of guests.
Direct bookings have a big impact on revenue. It’s important for RMs and DOSMs to strategize an effective direct booking campaign. Plan what vendors and marketing initiatives to put in place to drive the maximum number of direct bookings.
Sojern’s risk-free model creates custom ads for your hotel, places them in front of in-market travelers, and drives direct bookings to your site. Plus, you don’t pay until the guest completes their stay. Learn how Eat.Drink.Sleep partnered with Sojern to double direct bookings.
For even more tips on how to boost your RevPAR and foster collaboration, download Sojern’s Hotel Management eBook: Maximizing RevPAR