October 22, 2018

Hotel Budget Season: Design your most profitable channel mix strategy in 2019


Determining what inventory to sell through which channels has become a critical component in operating a profitable hotel.

Before you can determine the optimal channel mix strategy for your hotel, you must identify your ideal business mix. Perform a thorough analysis of your current customer segments, including demographics, source markets, the purpose for visiting, length of stay, and of course, which channels they’re using to shop for hotels.

In particular, you want to understand the total guest value of each customer segment, moving beyond revenue per available room (RevPAR) or even net revenue per available room (NetRevPAR) – which accounts for acquisition costs. In addition, consider guest spend on ancillaries such as food & beverage, recreation, spa services, and merchandise.

With this information at your fingertips, you can plan which higher-value customer segments you want to target in 2019, and through which channels you can best reach them.

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