How can an occupancy provisional report influence your marketing ?
Marketing campaigns planned according to your year-long communication plan can be derailed by data recorded during the year. Even though each and every action should be planned in order to always be one step ahead of your competition and remain efficient, some indicators, such as the occupancy provisional report for a future date with respect to the current time T, can indicate the need to act immediately.
Am I early or late?
The occupancy provisional report is one of the most useful indicators your hotel management software can provide. This indicator can state at time T, at the same date, what was the occupancy for a future date this year compared to the previous year. For example: what is my forecasted occupancy for St-Valentine’s day this year compared to last year’s forecasted occupancy at the same time?
This performance indicator is very useful for dates that have a considerable potential associated to them such as Christmas, New Year’s or any other local/hotel-specific events. Additionally, given that your Hotel Management Software provides you daily with forecasts for specific dates, you can look at this indicator following your marketing actions in order to mix up the trends.
An upward trend?
If your report indicates that you have better forecasts than last year, you can still come up with actions to carry out. In this situation, it seems that you have put everything in place to attract more clients to stay at your hotel. For example, you could implement an increasing yield management strategy where you gradually increase the rate for your last remaining rooms. Other options are available, such as promoting more comprehensive packages which will improve your REVPAC.
In any case, given that the date for which you are running forecasts seems to be a potentially interesting date to attract more clients, you should implement strategies so that each of your clients’ stay is beneficial for your REVPAC. This can be done by promoting packages upon your clients’ arrival at your front desk, advertising the latest availabilities across your various services and informing of the opportunity to add extra custom services during their stay. Every single action will allow you to improve your clients’ stay and thus your results. However, without an appropriate tool such as a Hotel Management Software which allows you to analyze data, quickly and easily adjust your rates and check for the availability of your related services, every action which you would want to carry out could end up not coming through or being a burden for your staff.
A downward trend?
Does your provisional report indicate that bookings for a specific date are not as promising as last year? Before panicking, it is important that you take the time to understand why your forecast seems to be following a downward trend.
Many interpretations can explain this. Your occupancy is not the only indicator to consider when you are deciding to take action or analyze your performance. If your occupancy seems to be lower, it can be useful to compare it to your provisional revenue report. In fact, if your hotel betted on an increased rate strategy, this could be a plausible explanation for your lower forecasted occupancy. This does not mean that expensive hotels will get worse results than more affordable hotels, but, in general, an increase in your rates can directly influence your target or type of clientele. Have you targeted the right clientele in your marketing campaigns?
Your clientele could have chosen you naturally or because you had modified your offers regarding your packages, which are now more comprehensive and therefore more expensive. In this case, it would be wise to consult your provisional revenue report. If your clientele is inclined to spend more, your REVPAC indicator and your benefit margin for each client will be better. You just have to carry out the appropriate actions to attract more clients in order to compensate for your delay. Other elements which cause a booking slowdown can be harder to control. Rainy weather in the summer, cancelled events in your city/town or blocked roads are unforeseeable elements that can negatively impact your bookings.
However, there is a way to counteract this downward trend. Traditional marketing campaigns can be implemented, such as e-mail marketing. Nevertheless, you need to optimize these campaigns so that they are more efficient given that your target date is right around the corner. Analyzing the reasons why clients may not be as interested in staying with you is crucial in order to customize your upcoming marketing campaigns. For example, if you are suffering from poor weather, marketing campaigns based on the vast array of outdoor activities that you offer will not be very effective. You should rather promote activities which can be enjoyed even if the weather is unpleasant. Another option would be to create activities which are not affected by the weather such as the well-known wine tastings, cooking classes or local art workshops. In addition to distinguishing yourself from your competition, these unique activities will prevent your clients from feeling confined to your hotel with no available activities.
Analyzing your provisional report can be a crucial step in building your marking campaigns. It is important to have control over every element in your hotel and each commercializing modification that was made for these elements. Now, every marketing action and trend you will assign to these elements will be wiser and yield results closer to those you expected.