WEBINAR

WEBINAR- 2013

Review Pro Webinar


1 - What is the relationship between QGI and revenue gains?

Following customer reviews is very important, because if a hotel can increase positive customer reviews ,by 1%, this can increase the demand for the hotel by 13.5%- a large increase. Furthermore, this 1% increase in customer reviews can also lead to a 1% increase in RevPAR. Because there is a 13.5% increase in demand, this subsequently creates a potential for the hotel to increase its pricing power. This improves the overall performance of a hotel.

2 - What person/position, in the hotel, is responsible for analysis of pricing changes based on quality index changes?

Revenue management as a position still exists, however the person in charge, must be adapted.  20 years ago, we were in 1.0 RM, where the job was easy, as there was no transparency at all. Today, we have moved to 3.0 RM, where there is hyper transparency  make it very difficult, so the need for an adapted manager. The current RM manager, must be a combination of the marketing department, the sales department, and the revenue management department.. Fernando adds that in 2013, the person in charge of RM must be more strategic and analytic and should be integrated with the executive committee.

3 - What new measurement will be used to measure quality scores to revenue performance?

The Quality Penetration Index- a measure of how the hotel is performing against the hotels' online reputation. This measurement was created approximately 2 years ago by Melia Hotels International. It allows hotels to create opportunities to increase volume or their AVR. Fernando says that if a hotel has a high QPI, they should not focus on increasing their volume, but rather their AVR.

4 - Is ORM the Revenue Maximization of the future? 

Definitely yes. As was mentioned in the beginning by Chris Anderson, online activities have grown at an incredible rate and continue growing endlessly. Because of these online activities provided by both the consumer and hotels, a hotel has the potential of determining the prices they will allocate based on guest reviews, or how to influence the probability that a customer will pick their hotel. This has created a change in the 'old fashioned' way RM was looked upon, leaving room for innovation and creativity and making it even more competitive for hotels. By embracing advances in technology and adapting to the old RM techniques, a hotelier can maximize its revenue.