In the recent times, the Indian Hotel industry has been witnessing a systematic decline in profitability in spite of similar or more year on year occupancy growth. Hoteliers established that this decline was essentially due to incorrect segmentation and exceptionally high commissions charged by OTAs. We have seen several State and National Hotelier Associations allege that certain OTAs charge high commissions and have unfair business practices.
There may be some substance to the allegations but OTAs cannot be blamed entirely for decline in the profits. Over a period of time hotels have been systematically losing focus from the managed segments like Corporate Business and Offline Leisure. There has been a significant shift in the business mix in the recent time with overflow of OTA demand which is less profitable compared to the managed segments which is on decline. Since customers receive lucrative deals online they are less likely to book directly.
Many hoteliers have started moving their focus back on Managed Segment considering the higher profitability. One of the biggest challenge that Hoteliers face is the incisive understanding of each corporate accounts production, value and patterns. Hotel Analytics is still in an infant stage and most of the hoteliers are still hooked with Segment Analytics; while the need is to analyze each and every account to determine the right strategy for it.
Revenue Manager and other Commercial Leaders in Hotel must constantly keep eye on the following –
> Top Producing Accounts by Revenue
> Top Performing Accounts by Volume/ADR
> Accounts Performing during busy nights Vs. Rates
> Accounts Performing during non busy nights
> Top Declining Accounts by value / volume
> Account volume and revenue Pace
> Cancellation ratio and its impact on house inventory & subsequent rate change in other
> Account Day of Week Pattern
Hoteliers must constantly look at increasing the lead time and length of stay of each producing account and increase volume through low producing Accounts. Consistent monitoring and implementing appropriate controls will help the hotel to create greater amount of base business far out; this will only lead into Unqualified segment rate increase closer to the day of arrival as hotel will be probably left with lesser inventory to offer.
Revnomix Hotel Accounts Analytics Dashboard Provides incisive detailing of Corporate Accounts Patterns on the go and is consolidated utilizing actual PMS / CRS data. Account Productivity by Segment, Source, Nationality, Day of Week, Busy/non-busy nights is also available.
Click here to know more about our Data Analytics & Business Intelligence services. Contact us via our website to schedule a demo and discuss how our data analytics services can generate optimum corporate business and revenue growth for your hotel.