Marketing

08 Dec

Understand your guests and earn more from your rooms

Written by Lydia Mills

Share

Pexels Photo 271639

The best way to think about it is this: what’s stopping you earning as much from your rooms as you can? If you’re using an OTA, there are two answers:

  • That guest has been acquired expensively and will continue to be so – because OTAs essentially lease your guests to you, charging the same high commission every time
  • You’re forced to offer that room at your ‘best price’ – regardless of how valuable that guest actually is to you

But how valuable a guest is to you is about much more than what rate they’re paying on a given day.

Hotels know this. But this truth is hidden when using RevPAR alone. Here’s why:

Imagine two guests offering to pay £100 for your last room. But one booked direct, while the other booked through an OTA. Every hotel would rather have the guest who booked direct, because they’re cheaper to acquire. But according to RevPAR, both guests are worth the same.

NetRevPAR – which takes acquisition costs into account – is a better measure, but still doesn’t tell you the whole story…

Why? Imagine both guests are paying the same and cost the same to acquire. According to NetRevPAR, they’re equally valuable. But are they really?

What if one guest had never stayed with you before, while the other has stayed half a dozen times? You’d take the guest who’d stayed before. Because they’re more likely to keep coming back. So they’re worth more to you, over their lifetime.

Hotels know this intuitively, but they don’t usually factor it in when making decisions that affect their bottom line. That’s where we come in. We help uncover the two additional essential measures that take you beyond RevPAR to insight and marketing action:

  • NetRevPAR
  • Customer LTV

By using your own data to accurately forecast occupancy, Noetic1 gives you the confidence to only use OTAs when you need to – so you can stop selling your rooms for less than they’re worth.

But it does something even more important. With smart guest profiling, Noetic1 puts a £ next to every guest you’ve ever had, so you can focus on filling your rooms with the right guests. Guests who cost less to acquire and stay more often and therefore deliver you higher lifetime value £.

Related articles

Marketing

08 Nov

OTAs v Direct Report

We teamed up with HOPSA and global equity research firm AB Bernstein to host the 'We teamed up with HOPSA and global equity research firm AB Bernstein to host the 'OTAs v direct; winning the guest relationship with technology’ conference’ conference.

Marketing

08 Feb

It’s not about the room, it’s about the value of the guest (over time)

From a hotel operator perspective, which of the following is better:

A hotel that is full or a hotel that isn't?

Marketing

14 Dec

Understand your guests and make your media spend work harder

Leaving aside becoming part of a major hotel brand, there are two main ways to fill your rooms

Marketing

22 Nov

3 things that make repeat customers come back

Stop spending a fortune on OTAs and start developing a relationship with your customers to secure those repeat visits.

Marketing

16 Nov

The formula for creating loyalty

Use the rules of customer loyalty to build lasting relationships with your best guests.

Marketing

13 Nov

​OTAs: How big a box have you put them in?

OTAs: How big a box have you put them in?

Marketing

19 Oct

Beyond RevPar: 3 steps to more effective measurement

RevPar: everyone in the hotel business uses it and it’s not a measurement that’s going away, nor should it.

Stay in the know

Fill in your details to receive regular news and updates.

(Please complete all fields.)