This presentation took place at the hotel Website Marketing Conference www.hotelwebsitemarketing.com

1. Hotel Website Marketing Conference
2010
Presented by: Cheryl Hawksworth

2. IDeaS Global Team
Minneapolis, MN

3. Congratulations if you survived!
Its now about Recovery
rather than Survival *
2011 presents an
Opportunity to Shine
Run as fast uphill as you
did downhill!
• *for some

4. Back in 2009/10…….
1. Think Strategic and Structured
2. Provide Guidance to Your Sales Team
3. Manage Your High Volume Accounts
4. Maintain Consistent Pricing
5. Research Any Competitor Movements Carefully
6. Forge Closer Relationships with Your
Distribution Partners
7. Sell on Value – Not Price

5. Irish Market
Dublin, Ireland, reported the largest ADR decrease, falling
13.4% to EUR77.15, followed by Budapest, Hungary, with an
11.5% decrease to EUR64.57.
Occ up 3.2%, Revpar down 7.7% (to May 10)
NAMA – upto 100+ hotels could be managed.
Bank of Scotland pull out end of 2010 – how many hotels with
loans affected?
The outlook for Ireland’s hotels continues to be pessimistic,
though slightly less so than six months ago, and it will need to
re-stabilise before it becomes an attractive investment option
once again.
Source: STR Global

6. For 2011/2012
1. Where will You Be when Demand Comes Back!
2. Understand Your Pace
3. Price for the Long-Term
4. Optimise Base Business
5. Maintain Flexibility
6. Use Data to drive decisions
7. Get Connected

7. Where will You Be when Demand Comes Back!

8. Where will You Be when Demand Comes Back!
PKF: Double Digit RevPar
increases not until 2012
Depressed Pricing levels
“Shell-shocked”
Now is the time to set
your strategies!
• Knowledge/Understanding/Expertise
• Business/Scenario Planning
• Long-term vision & strategies

9. Understanding Your Pace

10. Understanding Your Pace
Rooms Sold – Corporate - Monday Forecast Rooms Pace
30% ahead of target
45 90 135
Today Days to Arrival

11. Understand your pace in-depth
• By Day of Week
• By Segment
• Seasonality
• Market Circumstances
Pace drives strategies
• Rate changes
• Yield Restrictions
• Reduced value-adds
• Promotional Tactics

12. Price for the Long-Term

13. Find Your Pricing Spectrum
The goal is to understand the demand
characteristics of products, and guest sensitivity
to pricing to define a rate spectrum that will
capture the maximum revenue.

14. Is this the time to start thinking about price increases?
Well – it depends…
• Owners want it
• Sales think market is not yet ready
• General Managers don’t want to risk the first signs of better business
Whatever you think – think strategic
• Price/Value/Benefit relationship
• Based on sound forecasts
• A logical and long term strategy that everyone understands (but not
necessarily likes)
Use competitive benchmarking and rate shopping tools
extensively
Evaluate your strategy frequently

15. Optimise Your Base Business

16. Build a Better Base
Don’t regret the decisions you make today
• Group & MICE business has a significant long term effect
Robust long-term Forecast
“Normalized” demand patterns as reference
points
• 2006/07/08
• Keep potential future displacement in mind
Keep flexibility in your approach
• Only confirm T&Cs 10-12 months before event
• Over allotment room rates
• Cancellation/Wash Rates

17. Maintain Flexibility

18. This is not the time to get locked into long
term contracts
Demand will be back in 2011 – or 2012 – or 2013?
Or it is back already – or it is not – or is it?
How will you optimise these when(ever) the time
comes:
• Corporate Contracts
• Group Contracts
• Wholesale & Tour Series
• Distribution Agreements
T&Cs
Value Adds
Pricing
Promotions

19. Balanced Middle Ground
Pre 9/11 2001-2004
2004-2008 2008 – 2010
Supplier Power Intermediary Power
Sellers Suppliers
Lose Lose Control
interest in of the Price
Suppliers Point
Balanced Middle Ground
Creating Win Win Situations
Source: Jim Young, Vice President and Chief Marketing Officer, Frontier Airlines

20. Data to drive Decisions

21. Using the Right Tools
Use data to drive your decisions
• Fact based non emotion
• Changes ‘I think we should’ to ‘I need to’
• Use one version of the truth!
Even basic tools can show an ROI
• Rate Shopping Tools
• Channel Management
• Sales Channel statistics (web, gds etc.)
The truth, the whole truth, nothing but the truth!
• What RM capabilities does your PMS, CRS, Web have?
• Can you honestly say you know what to ask for when evaluating
these tools?
• Get referrals from those who know the back end as well as the
front.

22. Get connected

23. IDeaS Major Integration Partners
Property Management Systems

24. IDeaS Major Integration Partners
Central Reservation and Distribution Systems
Rate Shopping and Rate Distribution Systems

25. Dare to Win!

26. Thank You
Cheryl Hawksworth
cheryl.hawksworth@ideas.com