The Hotel Industry’s Hottest New Trend Easily Explained
The technology combines algorithmically enhanced historic data (what powers Revenue Management Systems) with new data that shows consumers online search behavior now for future hotel check in dates (what powers advertising technology targeting).
Since then, we’ve seen firsthand the “ah hah” moments when hundreds of hotel revenue managers and marketers from around the world when first understand how futurecasting helps make them better at what they are already doing.
Futurecasting – what is it?
Pick a future arrival pattern. Lets say a weekend 5 weeks from now. Then pick a segment – in this case transient leisure. Your RMS establishes forecasted occupancy and rate for transient leisure for that weekend and updates pick-up toward that goal. Revenue teams see every day whether they are ahead or behind pace for transient for the weekend 5 weeks in the future.
Think today. There are thousands of people all over the world on 3rd party hotel booking sites searching check-in dates for the weekend 5 weeks from now for either your hotel or a hotel in your competitive set. There were many more thousands who have shopped you and your competition for this future pattern in the weeks leading up to today.
Futurecasting combines how you’re doing versus pace in your RMS for transient business for the weekend 5 weeks from now with how you stack up as transient consumers shop your hotel versus your competition.
Futurecasting shows whether or not this particular weekend is an opportunity for you to win more transient business.
Futurecasting – how easy is it to generate new revenue?
Think about it: if you’re behind pace to transient forecast in your RMS, but getting more than your fair share of consumer searches for this future weekend, that’s an opportunity – to create a special book direct rate, promoting it through email or your web site. Similarly, if you’re ahead of pace for this weekend while also up on search share, that’s also an opportunity – to raise transient rate.
This most basic implementation of futurecasting is really simple and takes just a few minutes a week to implement. An average hotel customer using futurecasting sees an incremental 10-15 web direct bookings every month, producing huge ROI.
Some of our more experience clients use advanced futurecasting that takes into account even more variables from your RMS (like rate versus occupancy, margin mix, segment mix) and from consumer shopping behavior (difference in published rate versus your comp set and search share by source market for example). This yields even better results.
To learn more about how futurecasting can work for your revenue or marketing teams, please contact us at [email protected].
Rich Maradik is founder and CEO of nSight for Travel.