FoodnHotel Asia 2014 - Increasing Revenue Without Significant Financial Investment

Maximizing Revenue Per Available Room -
Increasing Revenue Without Significant Financial
Investment
Tarandeep Singh
Director Revenue Management for Hire (AMEA) &
Manila Ops (AMEA, Greater China & Europe)
09 April 2014

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Asia, Middle East & Africa Revenue Management
| © 2014 IHG. All rights reserved
What we will cover?
On Premise Mobile Marketing
Innovative Revenue Generating Ideas
Upsell Training
Targeting Ancillary Revenue

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What we will cover?
Upsell Training

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The onlyway to interactwith
your customerwhile
he is enjoying your product or is in a position to enjoy your product
(i.e. traveling)
is using a
mobile device

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TEXT MESSAGING
MOBILE
OPTIMIZED
WEBSITES
MOBILE
ADVERTISING
MOBILE EMAIL

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No one wants to be
marketed to,
But
everyone likes to
have relevant
information available
to them.

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8

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V/S

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What we will cover?
Upselling

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Everystage in the travel cycle has
become an engagement
Opportunity.
Contextualize & Personalize

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Thinkof inventory
as a preciousasset
versus
a perishablecommodity

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Fractional Pricing
Applied to a hotel, fractional pricing could be used to day rate pricing
Car rental companies calculate their extra hour price by taking a
percentage of the price per day.
If the cost of the extra hours meets or exceeds the daily rate, then the
system automatically jumps to the daily rate.

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Fractional Pricing
Car Rental Company Methodology applied to Hotels
$250
Price of the Room per night
Fractional
Time
Hour
Fractional
Price
15%

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Airport hotels are prime examples of where fractional pricing helps
Key questions that a hotel should consider before using fractional pricing:
 Does it make sense for the product/service to be sold in fractional increments?
 What increments should be made available?
 What is the % of price applied to the fraction?
Airport Hotel – Day rate example
A guest wants to book a room to use
between flights for 3 hours
Price $37.50 per hour ($250*15%)
Times 3 hours =
$112.50
Guest changes the request for a
longer stay of 7 hours
Price $37.50 per hour ($250*15%)
Times 7 hours =
$262.50
Since fractional price is greater
than the primary price, we need to
sell room for $250.00
x

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What we will cover?
Upsell Training

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Setting your house in order…
Communications
need to be
thoughtful and
transparent
Clear signs of
executive support
need to start at the top
and cascade throughout
the organization
Think outside the
box to deliver training
and communications
We need to be aware of
cultural and
generational
differences in learning
styles
We need to ensure everyone
understands that this is
business transformation
not just a n incentive
exercise
Learn from past
experiences – a project
like this should not fail
during delivery
Owner engagement and
leadership is important

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Training your Front Desk in Upselling
Successful
Upselling
Program
Pricing Structure
Staff TrainingRecognition

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IDENTIFY
ANCILLARY REVENUE
UNBUNDLE
SERVICES
INTELLIGENT
CHECK IN PROCESS

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Quick Tips for In-house Upselling Training
 Remember – Its all about Communication!!
 Reconfirm the pre-reserved accommodation
 Reassure the guest that they already have a nice room
 Probe to find out if the guest is aware of available upgrades
 Present the availability of upgrades as a unique opportunity
 Upsell early arrivals into a higher room category.
 Utilize incremental sales techniques.
 Differentiate between OTA bookings and others
 Demonstrate the value received. Be as specific as possible
 Mention higher rates as a reference point to position lower rates as being a good
value.
 When quoting rates to walk-ins, always offer a menu of options.
 Most importantly - Use Visual Aids
 Get their Buy In and Feedback
 Document a SOP
Simplicity is the key

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Sample Up-sell Tracker

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Quick Tips for In-house Upselling Training

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What we will cover?
Upsell Training

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Ancillary Revenue Opportunity
F&B
Breakfast
Cake
Meals
Wine
Bottle
Fruit
Basket
Mini Bar
Cookery
Classes

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Transportation
A/P
trsfrs
Local
trsfrs
Office
trsfrs
Bike
rental

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Business
Meetings
Meeting
Equipment
Upgraded
Wi-Fi
Team
Events
Soft
Mini Bar

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Spa &
Wellness
Pool
(for Non
Residents)
Massage
Treatments
Gym (Non
Residents)
Sports
Facilities
Trainer

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Miscell.
Flowers
Extra Bed /
Crib
Connecting
Rooms
Butler
Service
Valet
Services
Parking Fee

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Key Points
 Understand the profitability of all your offerings - packages, food, drinks, spa - as
well as what the demand for each of these are
 Identify the biggest revenue opportunities – food & beverage, conference
facilities, spa, etc
 Prioritize by revenue and ease of implementation
 Set the targets and define a clear action plan
 Make sure you have the right information and the key support needed to
achieve your goals

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Thank You

FoodnHotel Asia 2014 - Increasing Revenue Without Significant Financial Investment

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