This article deals with this year's trends trends regarding the travel and hospitality industry. We will analyse each of the author's points and relate them to revenue management.
1. Demand for leisure travel will be more important than the one for business travel
As travelling costs (cost of fuel, etc.) are becoming more and more significant for firms, they are done only when necessary. As a result, hotels might loose a certain segment of their clientele. More on a revenue management point of vue, it might be interesting for hoteliers to enlarge their pannels of prices for business travelers by, for example, more and more getting into a partnership with airlines. Ie. If one travels with Airfrance, a particular hotel could offer a cheaper rate for a room. On a short term basis, it could help them to keep a segment of customers and level out their occupancy rate.
2. Family travel will still continue to represent a growing part of the travelers
Family travels allow people to be with their families as a unity. Why not create special "quality family time rates", especially when the occupancy rate is particularly low.
3. Fares and rates will raise on both airlines and lodging accomodations, especially in popular destinations
Hotel chains should promote and communicate more and more other less popular destinations at discounted prices. For example, when companies are willing to organise big conferences in a hotel in a big city, why not offer cheaper rates in a secondary city.
4. The use of the Internet for travel booking will continue to dominate
This means that the Internet will still play a significant part when clients are to book a hotel or a holiday. In other words, web pages should easily be found, clear and properly presented. A web page is not only another distribution channel but also a promotion and advertising tool where potential clients look at different products and services. They play a part in the decision making process, whether to buy or not. Hotels should also know whether the rates offered on the Internet should be more interesting than booking on the phone or in another way.
5.The role of meta search engines such as kayak.com
Again with the use of the Internet it has becomed even easier to get different types of informations. Especially with travel bookings with loads of sites such as kayak, opodo among others which search for hotels at the cheapest rates. Hotels need to be aware of those, get to know the decision making process of their clients so that they can manage all the different distribution channels to their advantage. Hotels ought to know on which sites their rooms should be available and at which rates.
6. The Millenials (what is a millenial? link)
Millenials, the up coming generation who has just entered the labour market, percieve things in another way. They are interested in other types of products and services. They love their independance while still socialising loads. In other words, hotliers will have to adapt to those new customers who hae other wishes and needs but at reasonnable prices. In terms of revenue managment, there is an opportunity if rates are flexible enough and if hotels know where to grab these potential customers'attention.
7. The concept of all inclusive pricing
Without talking about the popularity of a particular destination, hotels must offer all inclusive packages. Customers are not always looking for the most luxurious place to go to but have the minimum comfort required in terms of bedding, internet access, working space and rewards points. Hotels should include in their rates these variables and adapt their pricing.
8. Spa-going
With the amount of stress accumulated on a daily basis, travelers seek for ways to relax wherever they are. At the moment spas are in the wave, but hotels that cannot afford to propose this kind of product to their clients should think of way to relax their customers, especially the business ones. Such products should appear directly as an incentive to attract more potential customers. In terms of revenue, this also means enlarging the rate structure.
posted by melanie | 7:45 AM
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