Travelers may research their trip on their mobile devices and laptops, but research shows 8 out of 10 rooms get booked through the direct channel. Guests want the reassurance of human interaction.
(PRWEB) January 06, 2015
Properties generate millions of dollars with a revenue-producing formula revealed in a newly-released white paper from NAVIS. "How to Drive, Capture, and Convert Demand with Integrated Revenue Generation Processes," describes how real hoteliers tap the full potential of their direct sales channel for dramatic leisure revenue increases.
"Travelers may research their trip on their mobile devices and laptops," said Michelle Marquis, NAVIS SVP. "But research shows a high number of rooms get booked through the direct channel. Guests want the reassurance of human interaction. This is especially true when the stay is high consideration – important, complicated, or expensive."
Why work for revenue when business is booming?
The average daily rate (ADR) has never been higher and RevPAR is up. Good news! But what about net profit? When you tally up the cost of acquiring each guest, is your revenue growth keeping up with your distribution channel costs? Not according to the Hospitality Asset Managers Association. HAMA finds that guest acquisition and cost increased 23% from 2009-2012--about equal to revenue growth for the same time period.
"What's going to be more and more important is weighing the value of each channel," said Marquis. "The metric to use is not RevPAR. It is net revenue that includes distribution costs for guest acquisition."
The direct channel is about 10-15 times cheaper than OTAs and 4 to 10 times cheaper than GDS travel agents. In addition to being thrifty, direct (voice) channel bookings average a premium of 31% ADR versus the national average. Unfortunately, most properties convert only 3 or 4 out of 10 direct channel calls. That means more than 60% of potential bookings are left on the table. "That means there's three times more revenue potential than properties currently earn," says Marquis.
White Paper: Drive + Capture + Convert = 3 Steps to Boost Direct Channel Revenue
The NAVIS white paper shows how successful hoteliers use their Drive + Capture + Convert strategies to increase direct channel sales. Executives describe how they apply the formula to generate numbers that make a stronger bottom line.
- 7% increase in ADR
- 9% increase in call conversion
- $250,000 increase in outbound call revenue
- 105% annual revenue growth
Are you ready to increase revenue from your most profitable channel and have a more direct relationship with your guests? Download the NAVIS white paper here.
NAVIS sales and marketing solutions empower resorts, hotels, and vacation rental management companies to leverage the full profit potential of their direct channel. NAVIS hospitality clients drive more demand, capture more demand, and convert more demand with dramatic increases in revenue and RevPAR. With a laser focus on actionable, real-time CRM data from the direct channel, NAVIS uncovers new and often ignored revenue opportunities, including increased reservations productivity, greater marketing efficiencies, call center optimization, and greater visibility into their businesses. NAVIS clients outperform competitors, enjoy greater market share, higher NOI, and more revenue. Click HERE to find out what NAVIS can do for you.