The hotel rooms market and also the convention markets both show very strong variations of prices. It is not only seasons that drive prices, but local market specifics which often depend on events like tradefairs, concerts and the like. Competition checks help to gain relevant insights for revenue management.
Hotel Revenue Management Needs Insights
This revenue management is one of the major drivers of profitability: Increases prices, when availability is low and demand very high. And, of course, vice versa.
Especially for conference hotels it is crucial to know, what the competition is up to. Competition can be the local competition in a given market. It can also be the competition between very exclusive, international locations or the competition of houses with very special, hard to find offers.
Our client, operating internationally at major hotspots, wanted to understand and benchmark, what the competitors in this specific market offer and how they offer it. Having an idea, what potential clients see when they compare offers with each other is a great benefit to improve one’s own offers. This is a layout, design and content issue.
Of course, to know the pricing for a given conference plan during a given time, is of great value. It allows to finetune one’s own prices or to find differentiating offers.
Competition Checks Help to Compare Prices and to Benchmark Processes
Our task was to get and check several convention offers for predefined meetings, seminars and larger conferences in international hotspots worldwide. This allowed us to benchmark the offers and to provide our client with suggestions on how to adjust offers and pricing. As the initiative is conducted at times with high demand, it has a strong impact on revenue management and margin.
As an additional insight the organizational set-up and processes implemented in the convention sales department of the respective companies became transparent. They showed first hand, by simply measuring answer- and quoting-times, how well each set-up was working. Based on this benchmarking we could advice our client on some very effective processes discovered which lead to a better customer experience.