Norman Bekker, Manager - CRM and Data Insight at Whitbread Hotels and Restaurants
2011 is expected to be a year where supply of hotel rooms remains plentiful and demand stays subdued, which will result in a scrap for customers. Well documented movements in the market such as VAT increases, Government measures, high level of unemployment, inflationary pressures will all have their impact on consumer confidence and resulting hotel performance.
Hoteliers will be looking at their KPIs including Average Daily Rate, Occupancy, Revenue Per Available Room (RevPar) and controlling their cost base more than ever before.
Driving RevPar will be a mix of driving volume through selling off distressed rooms and increasing average rates at times and locations when the market can carry it. We are likely to see a myriad of tactical, rate-lead promotions selling off distressed stock through discreet channels other than above the line advertising. Signing up to the various communication channels such as email lists to hear it first is a must for all consumers.
Leveraging the insight derived from cumulated customer data and segmentation of the customer database will be pivotal to staying ahead of the pack. The identification and targeting of profitable customers and maximising the Revenue per Available Guest (RevGuest) will be key.
The question is will the travel providers lead the way? Due to the size and number of people employed in the travel industry, travel providers will face the dilemma of finding the right balance between controlling cost and playing their part to a resilient and robust economic recovery by relaxing spend policies.”
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