MEDIA CONTACT
Chris Fong
Social Meida Manager
8551 W Sunrise Blvd Suite 302
Plantation FL 33322
Tel 954.382.3900
MIAMI,
FL-March 22, 2013 - The hotel industry is constantly changing, and evolving as technology
evolves. That means that our pricing strategies, operations and overall
business goals need to change as well. But because it can be tough to
stay on top of whats new, I have put together this quick overview of the
top three new online sites that will have a big effect on hotels
revenue management strategy and revenues.
BackBid
According to their website, Backbid
is a hotel booking website that revolutionizes how travelers book hotel
rooms. BackBid empowers you, the traveler, to find the best possible
hotel room, for the best price, with no elaborate or time-consuming
searches necessary. By posting your existing hotel reservation to
BackBid, hotels are able to see your travel plans and offer bids for
your business, offering either discounts or value-added services, like
upgraded rooms, free parking or breakfast.
In plain ol English,
what does this mean? After booking a hotel stay with another property
through the customers channel of choice, they post their reservation
details to the site (including star rating, price, room type, special
needs, etc.). Hotel members can then see which BackBid users are coming
to their area (based on the reservation that they already have) and can
create a customized offer to entice the traveler to cancel their current
reservation and rebook with them. BackBid bookings are done directly
through the site, but cancellations must be handled directly by the
traveler.
What does this mean for you, the hotelier?
The
industry is divided on their opinions about the site. Some hoteliers
believe that the site is creating a race to the bottom (in terms of
price) and will create opportunities for hotels to steal other propertys
business. On the flip side, some hoteliers find the site useful for
selling rooms in slow periods or during the last minute booking window.
Unlike other OTAs, BackBid allows the hotel to take control over the
number of bookings they receive, and therefore, greater control over
their revenues.
We tend to agree with the second set of hoteliers
because, if BackBid is used properly, it can offer valuable benefits for
a hotel. The most beneficial feature of the site is that hotels can
choose to offer value-added services, instead of discounting (which
removes the race to the bottom concern). This allows a property to
entice new customers for less money than a straight discount. Overall,
we dont believe that BackBid should be the entire basis of a propertys
pricing strategy, but it has the potential to be a great tool for
selling unsold inventory on a case-by-case basis.
Airbnb
According to the website, Airbnb
is a trusted community marketplace for people to list, discover, and
book unique accommodations around the world online or from a mobile
phone. Whether an apartment for a night, a castle for a week, or a villa
for a month, Airbnb connects people to unique travel experiences, at
any price point, in more than 33,000 cities and 192 countries.
The
site is essentially a Craigslist for hotels. Individuals or vacation
rental companies can list their room, apartment, boat, castle, etc. for
rent. Travelers can book and pay online and will be vetted to ensure
that they are trustworthy. Unlike the OTAs, Airbnb does not require rate
parity so the owners can list the property at any rate they choose and
can offer discounts on a case-by-case basis to incentivize bookings.
What does this mean for you, the hotelier?
This
site poses a big threat to hotels revenues. As there is much less
overhead for an individual who is renting out their space (than a
hotel), the prices available through Airbnb are often drastically lower
than the average hotel price in a given destination. In peak times,
hotels often sell out, but Airbnd will often still have inventory
available because of the sheer number (of properties) and the many
different types of accommodations available through the site.
While
AirBnB caters to a different demographic than most hotels, the website
has gained a lot of traction since its launch in 2008. If it becomes
popular enough, it could potentially expand its content to offer hotels
and resorts, adding a new source of revenue to their existing electronic
sales segment.
Tingo
The sites website says that Tingo
is the only site that automatically rebooks you at the lower rate if
your hotel drops its priceand then automatically refunds the difference
to your credit card. All without you lifting a finger!
Basically, a
traveler can book their trip through the site and if the price drops at
any time before departure, the site automatically rebooks the traveler
at the same property for the lower price (and it will continue to do so,
as long as the rate decreases).
What does this mean for you, the hotelier?
This
site will have a drastic effect on hoteliers because it will
automatically refund the difference if the room rate changes. In recent
years, hoteliers have gotten used to lowering their rates at the last
minute to clear inventory. But Tingo will further reduce the
effectiveness of this strategy and will result in your property losing
money. Instead of following traditional pricing strategies, Tingo forces
hotels to offer the best price in advance and yield rates as the stay
period approaches.
One thing is for sure. The online marketplace
is constantly changing, with every year bringing more competition
through many new channels. That also means that your revenue management
strategy has to continue to evolve as the marketplace (and as consumer
booking habits) change, and the only way to do that is a sophisticated,
online revenue management system.
About REVPAR GURU
REVPAR
GURU helps hotels to analyze complex data - including historical rates,
the rates of competing properties in the same destination, pricing
trends and environmental factors - to determine the right rate, at the
right time, to secure the highest number of bookings. REVPAR GURU's
system calculates room rates up to a year in advance, and continues to
update the rates automatically multiple times every day as factors
change, across all online channels including OTAs and direct channels.
In short, REVPAR GURU helps hotels to increase their occupancy and their revenues.
Headquartered in Miami, Florida, additional information can be found at www.revparguru.com or by calling +1.786.478.3500.
For information on the ReGIS® application, you can view a demonstration by visiting www.Regisres.com. For more information about POWERi Technologies, contact them at 954-382-3900 or e-mail at info@poweri.com or visit www.POWERi.com.
About POWERi Technologies:
POWERi Technologies
is an interactive marketing and digital public relations firm offering
clients an integrated set of strategy, technology, and creative
services. The agency combines interactive rich media technologies with
captivating creative design to deliver dynamic solutions that help
clients build and maintain high-value relationships with their
customers. The firm also specializes in new media, servicing clients
with innovative technologies in the field of social media, blogging,
podcasting and online media relations. |
