Hoteliers urged to prioritize profits in their distribution strategy

It has never been more important for hoteliers to be on top of their global distribution strategy and be mindful of rates across the various channels they sell on, said experts at the HSMAI 2022 conference on the revenue optimization.

Speaking at the ‘Distribution Strategies that Optimize Profit and Accelerate Recovery’ panel, Andrew Rubinacci, executive vice president of business strategy and revenue at Aimbridge Hospitality, said discount channels no longer make sense because travelers will find these discounts regardless of the channel they appear on. .

“The general theme is that you can have the best marketing in the world, you can have the best brand, you can have the best of everything, but if it’s $30 cheaper somewhere, consumers are going to book it,” said he declared.

He recalled a conversation he had with a sales manager who thought their company-traded deals were down 5% at one point, only to discover that they were actually up 5%. %, but that these business travelers were more likely to book on lower cost channels.

“You really have to understand what’s going on,” Rubinacci said.

He said a distribution strategy should come down to not only achieving the best rate possible, but also getting the most out of each channel and defining key metrics to track success.

If that metric simply achieves the highest revenue per room available in a market, he said hotels could just “make a deal with at 90% commission and tell them they have to fill every room every night. “.

Read the full article on HotelNewsNow (part of CoStar)

Revenue management

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