|
Over 160 Asian hotel industry professionals attended a summit and 90 percent of attendees predicted that hotel bookings from online sources will grow by more than 20 percent in the coming two years. A summit of more than 160 leading Asian hotel industry professionals has delivered key insights into the impact online bookings and social media are having on the regional hotel sector, with 90 percent of respondents predicting that hotel bookings from online sources will grow by more than 20 percent in the coming two years. The ‘Driving Hotel Revenue Malaysia Summit’, organised by IDeaS Revenue Solutions, the leading provider of pricing and revenue management software, services and consulting, gathered leading Asian (and Malaysian) hotel general managers, revenue managers and sales directors for key educational and networking sessions. Research from the summit found that the rise in popularity of social media and online review sites across Asia is having a significant influence on how hoteliers operate and their ability to attract guests. Ninety-four percent of hoteliers surveyed stated that a hotel’s online reputation can have an impact on a guest’s decision to stay with a specific property or hotel group. “Hoteliers in Asia must adapt to changing guest booking patterns – with a particular emphasis on how to best attract and retain guests in an increasingly online world,” said Jessica Tham, corporate director of revenue management, Berjaya Hotels & Resorts. “It is no longer enough for hoteliers to put room rates out into the market and simply expect guests to turn up. Savvy hoteliers have to understand what influences a guest’s decision-making process these days and be involved in the process.” Crucially, for hoteliers across Asia, the rise in social media and online review sites are having a direct financial impact on their businesses. Research from the summit found that 66 percent of hoteliers believe that a hotel’s online reputation can have a ‘large’ impact on how it can price its rooms and services. This research is backed by a recent Cornell School of Hotel Administration study that found that online guest satisfaction has a direct impact on the financial performance of hotels. Their research found a 1-point increase in a hotel’s 100-point ReviewPro Global Review Index™ leads up to a 0.89 percent increase in price (ADR), a 0.54 percent increase in occupancy, and a 1.42 percent increase in Revenue per Available Room (RevPAR).* “In an increasingly digital age, a hotelier’s reputation has never been more critical. With the ability for guests to share both positive and negative hotel experiences to large groups of people - including potential guests - in real-time, ensuring that guests have a positive perception of your hotel is paramount,” said Gladys Ang, Regional Director of Sales of IDeaS. “While online reviews have been generally used by hoteliers to help improve operational and marketing activities to date, the proven relationship between online reputation and pricing means that hoteliers need to incorporate online reputation data when they develop their pricing strategies, consider their competitive positioning and make tactical pricing adjustments.” In addition to identifying opportunities around social media and hotel pricing strategies, research from the ‘Driving Hotel Revenue Malaysia Summit’ highlighted that the outlook for the Asian hotel sector is overwhelmingly positive with 83 percent of hoteliers at the summit stating their belief that demand will grow for the regional hotel sector by more than 10 percent in the coming two years, with business travellers expected to drive growth in the hotel sector at a greater rate than leisure travellers. “Positive growth predicted for the regional hotel sector is encouraging, but to capitalise on this growth across both the business and leisure traveller markets, local hoteliers must ensure they have the right revenue generating systems and social media strategies in place to address issues like rising levels of competition and online commentary that can shape a hotelier’s reputation,” said Mark Lankester, group chief executive officer, Tune Hotels. |
