MARKETING

Establishing Room Rates

BCHS™ work with our clients, small and medium sized hotels & resorts, to source and analyse the data collected from a hotel´s identified competitive set, removing the guesswork and assisting each Owner/Operator with establishing room rates with confidence. In follow up, we routinely ‘shop´ our client´s competitive sets to ensure our clients remain competitively priced. Everything starts with Rack Rate ! Establishing seasonally adjusted competitive room rates along with relevant discounts applicable to each transient & group market segment is critical to growing market share, revenue, average rate and RevPar.

Two of the most common approaches to pricing your hotel rooms are as follows. In both examples seasonal pricing will also play a factor.

Market Based Pricing - The assumption behind this approach is that a hotel can only charge what the market will bear; therefore, price is dictated by the competition and is an approach that allows the local market to determine the rate. This approach fails to take into account what a determined sales effort can accomplish.

Top-Down Pricing - This approach is often used by hotels entering a new market or trying to identify a gap which is unfilled and still requires an element of cost-based pricing in order to ensure that the prices being charged are realistic and will result in an overall return on investment.

ADR-REVPAR

We help our clients position their hotel at the right rates, targeted at the right group of customers and backed up with a team of qualified hospitality sales managers able to drive occupancy in the slow periods at competitive rates; maximizing rate and revenue in periods of high-demand using Yield Management techniques resulting in increased top-line revenue, improved bottom line and increased profits.

Average Daily Rate ( ADR )

Revenue Per Available Room ( RevPar ) Market Penetration BCHS™ helps small & medium sized hotels & resorts analyse why they are under- performing in any of these 4 key indicators. This is not always an easy task as many factors may be influencing the underlying cause i.e. rates, product, location, services, mix etc. We help determine these underlying causes, working with our clients to develop and implement an action plan to increase both fair market share and market penetration.

There are 4 key indicators of Market Penetration, these are Revenue; RevPar, Average Rate and Occupancy. 100% is equal to fair market share; anything less is not ! Let´s assume that a hotel with 70 rooms operates with 4 hotels within its identified competitive set. Hotel (1) has 50 rooms, Hotel (2) has 100 rooms, hotel (3) has 80 rooms and hotel (4) has 150 rooms. This would mean that on any given night that there are a total of 450 rooms available in the market for sale.

Business and Leisure Packaging

We provide the expertise to Large, small & medium sized hotels & resorts in the design, pricing, and production of the necessary hotel collateral, advertising or direct mail pieces required reaching their target markets. We include this important element for clients who contact with us for hospitality sales, marketing and creative & media solutions.

Competitive Market Analysis

We are experienced at conducting competitive market analysis identifying those elements of a hotel´s competitiveness that in turn make our clients and their hotel´s successful within their individual markets.

Market Segmentation

We assists small & medium sized hotel´s & resorts with maximizing their hotel´s potential from each market segment. Understanding your hotel´s potential from any given segment; coupled with a strategic yield management strategy; will improve occupancy, rate and revenue ensuring your hotel will attain its maximum performance.

We understand how to apply the economics of Pareto´s Principle ( 20% of customers produce 80% of the profits ) to the business of hospitality sales, marketing, advertising and promotion ensuring our clients achieve their maximum potential. We quickly identify which segments have the potential to produce 80 percent of your hotel´s revenue and develop these segments to ensure your hotel is achieving fair market share.

Market Segment Tracking
Yield Management
Recruiting a Sales Manager
The Sales Plan
The Marketing Plan