Presentation by Loren Gray

1. FUEL YOUR REVENUE

2. Bringing the Tactical and Strategic: The Convergence of Revenue
Management and Digital Marketing
Loren Gray CHDM
Founder / CEO
Hospitality Digital Marketing
Bit.ly/hdmrocet

3. Lets Get Warmed Up
Open your iPhone’s “Settings” menu, select “Privacy”, then
“Location Services”, then scroll all the way down to “System
Services”.
In System Services scroll all the way down to the bottom,
press “Significant Locations” and look at the “History”
section. Click on one of the area names to see where you’ve
been.Sales  Revenue  Marketing

4. Let’s Start From The Beginning….
Sales  Revenue  Marketing
What are we….

5. Today
In an American Express survey commissioned last year, consumers
illustrated their demand for more enriched lives and personal
fulfilment through experience and learning. Over 72 per cent of
respondents said they would rather spend money on experiences than
things. Further, 88 per cent said travel is the number one dream on
their life’s bucket list, ranking higher than family or wealth.

6. Sales  Revenue  Marketing
This is how we define our guests

7. This is how most see the ‘cycle’ of our guests
Acquisition
Pre-stay
Engagement – (Stay)
Post stay

8. How can Revenue Management and Digital Marketing
create a symbiotic relationship?
| Analysis
| Optimization
| Forecast
| Price
| Market
| Customer
| Distribution
| Challenges
| Consumers are
getting smarter
| The codependent
relationship with OTAs
| New market disruptors
surfacing everyday
| Customer
| Analysis
| Advertising
| Market
| Price
| Promotion
| Distribution

9. Understanding the Revenue & Marketing Team’s Ecosystem
Known Customer Unknown Customer
Media
Web/Mobile
Loyalty Program
Direct Marketing
Analytics
Revenue Optimization
Acquisition
Direct &
Loyalty
CRM

10. Looking forward by looking where we have been

11. Sales  Revenue  Marketing
Digital Strategy – Guest Acquisition – The Really Short Version
Stay Date
Research Date(s)
Timeline
Prime Booking WindowResearch Period LOS
January February March
Departure Date

12. Facebook Examples
Sales  Revenue  Marketing
Custom Audiences and
Look-Alike Audiences

13. Sales  Revenue  Marketing
Group dropped 14 days out for entire weekend (62% of Occ)
• Took arrivals list and made a custom audience
• Took last years in-house list same time made a custom
audience
• Made a custom audience based on a radius of 150
miles (drive market)
• Put all three together for an ad featuring those specific
dates, (making the arrivals list a negative)
Group Short Term Replacement

14. Sales  Revenue  Marketing
Stealing Market Share and Driving Local Business
Gender: Female
Age: 24 - 34
Relationship Status: Single
Interest: Live Music
Located: Within a 5-mile radius
Scheduled to Post: Friday @ 5 pm &
9 pm
Meeting Initiative F&B Initiative

15. Person 1
• Born in 1948
• Grew up in England
• Married twice
• 2 children
• Successful in Business
• Wealthy
• Spends winter holidays in the Alps
• Loves dogs
Person 2
• Born in 1948
• Grew up in England
• Married twice
• 2 children
• Successful in Business
• Wealthy
• Spends winter holidays in the Alps
• Loves dogs
Profiling: What Assumptions Do

16. Now for some REALLY
cool stuff…
Sales  Revenue  Marketing

17. Sales  Revenue  Marketing
New ways to look at Digital Marketing Data and Revenue Management Strategies

18. Sales  Revenue  Marketing
Sourcing Data to Define Strategies with GTM

19. Digital Marketing Budget ‘Ground Level’

20. Leads = 10
Conversion Rate = 10%
Sale = $7,500
Frequency – 1
GP = $7500
Leads = 20
Conversion Rate = 10%
Sale = $7,500
Frequency – 1
GP = $15,000
Leads = 20
Conversion Rate = 20%
Sale = $15,000
Frequency – 2
GP = $120,000 (which is 16x $7500)
Double One, Double Growth. Double All – 16X Growth

21. Framework For Successful Analytics: Unlocking Capability
Collaboration
Common
Vernacular
Integrity in Data
TransparencyBuild Trust
Enabling Business
Decisions
Continuous
Improvement

22. Reporting is “the process of organizing data into
informational summaries in order to monitor how
different areas of a business are performing.”
...Analytics is “the process of exploring data and
reports in order to extract meaningful insights, which
can be used to better understand and improve
business performance.”
The Differentiation Between Reporting & Analytics
What data should be
a part of both?
KPI’s

23. Collaboration
• Working together as one unified
team across all departments
involved with profit optimization
• Establishing a committee to
govern the next steps of the
framework

24. Common Vernacular
• Common Language
• Does customer segmentation really mean the same thing as marketing
segmentation?
• Common KPI’s
• Are stakeholders using the right KPI’s that generate holistic views of
performance at the highest level?
• Common Goals
• Lowering the media budget to optimize profit might not be what
marketing wants to hear for next year’s budget, but do our KPI’s show
that this is the best way forward?

25. Integrity In Data
• Identify what data we have from
each respective area that we can
combine into our data model
• Make sure the data is accurate,
consistent & correctly represents
the common vernacular
established
• Do not practice ‘statistical
bending’

26. Transparency
• Be open to all consumers of the
information about what the data
“is” and what it “isn’t”
• Build visual context around what
the consumers are looking at
• Understand what the team has
now and what the team is trying
to build for the future
• What is the forecasted revenue
expectations for any particular
channel

27. Build Trust
• Buy-in from stakeholders
• Trusting that the process works
holistically towards profit
optimization
• Rely on team members not
simply oversee
• Acknowledge successes and
share failures
• Own what is yours

28. Enable Business Decisions
• See the big picture across all data sets
being sourced; both internal & 3rd party
• Holistic approach to enhanced enterprise /
property decision making
• Grow your business profitably

29. Continuous Improvement
• What did we learn?
• How can we improve next time
around?
• Fail fast
• Team share failures and debrief
them, not hide them
• Define performance threshold
metrics with concrete decision
models
• Keep an activity log

30. Why Technology & Automation Are Essential to Conversion Optimization
Booking Engine
PMS
CRS
RMS
CRM
3rd Party Data
Services
Campaign
Management
Conversion Optimization
&
True Customer Personalization
• PMS delivers historical data on known guest
behaviors (spending history, room preferences,
etc.)
• CRS delivers availability for dates of interest
• RMS delivers demand forecast & rate
recommendations by room type
• CRM delivers customer worth & detailed
customer data for known customers
• 3rd party data services deliver detailed
information about the known or unknown guest
based on cookies which include flight
information, searches, preferences & more
• Booking engine will be personalized at the
customer level to take advantage of all source
systems & data with an offer tailored to that
particular guest for that particular trip in real-
time

32. Now What? Optimizing Mix Based on Channel Economics
Through which channels can a guest X
book a room?
Given variation in guest economics by channel and property, which channels should we incentivize guest X
to book through?
PER ROOM NIGHT
How much does it cost to acquire guest
X for that channel? $XX $XX $XX $XX
How much does it cost to process guest
X’s room reservation? $XX $XX $XX $XX
How much does guest X spend on a
room?* $XX $XX $XX $XX
Once guest X arrives, how much is spent
on-property? $XX $XX $XX $XX
Tracked Contribution Margins $XX $XX $XX $XX
Brand.com

33. Sales  Revenue  Marketing
Merging Social, Analytics and Emails to Sales

34. Sales  Revenue  Marketing
Isolating under performing opportunities

35. Four Predictions that are Coming True
Websites will be a thing of the past
The Search Box will go away
“A.I.” will control your marketing
Sales  Revenue  Marketing
Video will become your only voice

36. Daily Shared Responsibilities
Rate parity and tracking
Channel management
Current campaign performance
Sales  Revenue  MarketingOutside data use and consumer setiment

37. Sales  Revenue  Marketing
Urgency Messaging
“x rooms left”
option
Real Time Prices
Based on dates of
travel
Promotion Messaging
Property
Multi-property
option available
Brand Logo
Stars
Destination Messaging
Dynamic Creative Template for a Real Time Bidding Display Ad
Membership Link
Facebook Brings DAT Mainstream

38. 2011

39. 2017

40. Sales  Revenue  Marketing
GDPR – What is it and are you compliant?

41. Sales  Revenue  Marketing

42. Hyper Local Initiatives
Sales  Revenue  Marketing
Micro Influencers
Gmail –vs- non Gmail
Google Tours

43. Google has a lot of guides and tools

44. Current Stages of Visual Engagement
VR – Virtual Reality
AR – Augmented Reality
360 – Flat Screen View
Sales  Revenue  Marketing
LIVE – ummm Yeah

45. Sales  Revenue  Marketing
The LIVE World Today

46. Links We Discussed
• Please view how Facebook is changing the internet..
• https://youtu.be/cR_XVGemAnw
• This is the whatsapp video from New York Times
• https://youtu.be/VAesMQ6VtK8

47. Video, presentation, links, resources and
Webinar are at…
Sales  Revenue  Marketing
https://www.HospitalityDigitalMarketing.com/rocet
OR
Bit.ly/hdmrocet

48. THANK YOU
48
@LorenGray
“For the Privilege of your time”