Feb 3, 2015

Seriously? This is all you get?

The other day, we talked about a metaphor related to Revenue Managers and Surfers. If you remember we used a figure similar to this:

Today I want to go deeper into the “Booking Pace” concept.

As you remember one of the most important differences between first class Revenue Managers and Surfers is that the former can alter /transform/ influence the wavelength of the wave while surfers (like regular Revenue Managers) just adapt to them.
Sometimes I have the opportunity to spend my time with experts, gurus, I-have-been-a-revenue-manager-for-X-years, Touristologists with the Revenue Manager hat on… and they share with me their knowledge about how to control the wavelength:
One of them was saying to me:
When the market is up: Increase the prices, cut your offer in the most expensive CRS or OTA and ask for a minimum of stays in your hotel.
When the market is down: Do the opposite!
I said -Wait a minute. Can I take notes? I want to share this with my Touristologists.
So, here I am sharing this with you.
I can agree with “When the market is up” ideas but remember, some CRS don’t allow you to cut the allotment. Well, they allow you to do that but then when the customer searches… you appear in the last pages. You know the joke… where is the best place to hide something? In the second page of the most popular search engine or central reservation system!
Let’s talk about the opposite ideas…
First a question: Seriously? This is all you get? Wow! This is rocket science! What do you think Touristologists? Can Touristology add something to this recipe?
Can you see the problems with your positioning that having more price-oriented people can cause?  Can your hotel be perceived as a low quality lodging?
Do you realize that by opening the most expensive channels  you are offering the biggest discount to customers that are looking for the best prices and, precisely for this reason, their loyalty is owned by the intermediaries?
Is it possible that we offer a low quality servuction? 
Is it possible that having to deal with more customers blocking you from implementing pricing activities like opacity, customization, up-selling and cross-selling? Remember mastering pricing strategies can help you in both situations, when the wavelength is high and when it is short. If you do it properly, you will get happier customers and a better on-line reputation, as you can read here.
Can Touristology add something more? Well, are you able to look for new waves? Are you able to think as a Touristologists does?
But, Jordi… to do that you need the training and the experience of a Touristologists. We need someone able to go to any place in the world and seduce a customer, a segment, a group, then customized the service and the servuccion, then use/build the most convenient chain of value.
Finally! That’s right! Just remember, we need a Touristologist with the Revenue Manager hat on!!! Is it necessary to say what kind of solutions Touristologists share with me? They are redefining the way we describe and practice Yield/Revenue Management. They are the best minds working in the best sector ever!!!

No comments:

Post a Comment