In the current global environment, the shadow of the new crown epidemic is still lingering. With the advancement of vaccine injection, the global epidemic control is gradually showing signs of clearing the clouds, and the number of hotel bookings is also growing steadily. While toasting this phenomenon, hotel owners must pay attention to the fact that the tourism industry, while reactivating retaliatory consumption after the epidemic, also faces challenges in the development of the industry itself. In recent years, the phenomenon of hotel cancellations has grown year by year, which has become a difficult problem for hotels. With the influx of tourists after the epidemic, hotel cancellations have shown a trend of rapid growth.
According to research by Avvio, the order cancellation rate is increasing year by year, from 2016 to 2019, the cancellation rate increased by 36%. Of course, canceling reservations will increase the operating cost of the hotel to a certain extent. Data in the article shows that cancellations accounted for 15% of lost revenue in 2019, up from 11% in 2016.The core reason for the increase in cancellation rates is “booking infidelity”. Because many hotels have added the option of unconditional free cancellation in order to increase the hotel booking rate, it can lead to travelers continuing to browse or choose other hotels after booking one or several hotels. In addition to the direct cost of cancellations, hotels’ digital marketing efforts that fail to deliver the expected booking and stay results can also lead to increased costs. Digital marketing ROI is often based on the number of direct bookings generated by marketing efforts without further tracking of post-booked accommodations.
Avvio estimates that UK hotels spent more than £11.5 million on digital marketing in 2019, and the huge investment in digital marketing has also led to services like free cancellations. It turns out that measuring marketing ROI is clearly not enough without concrete data on marketing conversion rates.
Avvio predicts that hotels will face cancellation rates of 20% or more in 2022. Cancellation rates continue to rise for a number of reasons, including the Covid-19 pandemic raising guest expectations for booking flexibility, while also recalibrating the travel industry to create a more competitive market for hotels. On the other hand, online OTAs also play a vital role, and most OTAs gain market share through related measures such as improving customer loyalty. According to a recent report from Skift, despite the hotel industry’s efforts to increase hotel bookings, more than half of hotel bookings still come from these third-party channels. In addition, with the continuous innovation of big data technology, users can continue to pay attention to hotel prices after booking, and can change the order and book again if they find a lower price.For hotels, how to achieve guest reservations is a must-answer question for hotel guests. Of course, to realize the guest from booking to check-in, it is still necessary to start with the analysis of the persona who canceled the order to understand the operation of a given hotel.By analyzing booking groups, you can find out which types of customers are more likely to cancel their bookings. According to Avvio research, cancellation rates are generally much higher between couples than families, with 66.7% of lost income due to couples changing plans. This is a great start, because with AI-powered tools, hotels can determine which individual bookings are more likely to be cancelled or more likely to be cancelled in a given market segment. This kind of data analysis provides a cancellation risk factor for each reservation based on changing market conditions. Without accurate big data analysis support, it is difficult to take targeted methods to reduce reservation cancellations.
Avvio’s allora.AI provides solutions for booking conversions, identifying cancellation risks, and booking reservations. Bookings should be considered a KPI. In a general evaluation system, the number of reservations is the main indicator for evaluating the success of the market return on investment, and the evaluation of key KPIs is the cost per customer acquisition (the cost of acquiring reservations). However, attracting new guests is only half the battle, retaining guests is just as important as staying guests. Hotels should improve on traditional KPIs to consider not only customer acquisition, but reservation retention rates as well. Moving the benchmark from gross revenue per room to profit per room is an option to account for “hidden” costs such as marketing spend and cancellations. Gaining insight into cancellations and their impact will help hotels better market and manage them. What’s more, don’t count bookings as the only core criterion for evaluation, keeping bookings and checking in is equally important.
Reserve introduced strategic investor Booking.com and signed a strategic cooperation agreement with it. Therefore, the “Hotel Order Growth Program” was launched to help address the negative impact of the COVID-19 outbreak on the global hotel industry. As the epidemic has been effectively controlled to a certain extent, hotel owners continue to do a good job in epidemic prevention and control while actively thinking about getting through the resumption period and restoring future growth momentum.
Reserve is a hotel reservation platform, which mainly covers Egypt, France and other European and North African markets. At the same time, it has established business branches in France and Egypt to more effectively provide cooperative hotels and hotels around the world with greater booking flexibility for their guests. . In terms of online hotel reservations, 75% of netizens in the United States will make hotel reservations through the Internet, but in developing countries and the Asia-Pacific region, this proportion is only 25%, and the market has great potential for development. With the advent of the global economic recession, major hotel groups are reducing their second-largest controllable cost, “travel expenses”. The emergence of online booking methods will undoubtedly bring consumers and enterprises the most affordable Interests. The process of global economic integration has made the source of hotel guests richer and more diverse, and also made hotels face an increasingly fierce competition environment and rising customer expectations, forcing operators to continuously seek to expand sales opportunities, improve service quality, reduce management costs and enhance The new magic weapon of customer satisfaction to enhance the hotel’s core competitiveness. In this environment, hotel reservation and order management has become an important tool for the global hotel industry to improve management and gain new competitive advantages.
Reserve, through the two-tier management mode of MyEclipse6.5+MySQL5.1 database, matches the third-party intelligent cloud control host with the reservation platform. At present, the platform cooperates with hotel booking platforms such as Expedia, Airbnb, Hostel.com, etc., through the intelligent MyEclipse6.5+MySQL5.1 database system to match global hotels and platform users, improve the transaction volume and popularity of hotel bookings on major platforms, and achieve global The purpose of hotel advertising. It can be seen that through the integration of IT technology, the hotel marketing management is systematized, which effectively reduces costs, improves management efficiency, and saves labor costs. Secondly, the hotel’s online reservation system operates 7*24 hours a day, and customers can understand the hotel details in a timely and intuitive manner through the Internet, which is extremely convenient and humanized hotel services. In addition, the hotel has established an image through online booking on the one hand, and on the other hand, it has also extended its services to guests, increasing the added value of hotel services. In a word, more convenient and user-friendly online hotel booking not only gives consumers the best service experience, but also fosters a good hotel online consumption market, so that each hotel has been more fully displayed and promoted.
Reserve is a platform that connects real users with global hotel reservations. We help hotels promote rooms and increase awareness. Tourists or business travelers book rooms, and hotels are making money. Hotels share the platform, and the platform gives us commissions, which also promotes the internal cycle of the global hotel industry economy. The power of Internet big data is changing everyone. As long as you are enterprising and responsible, you can quickly build a team of thousands of people. “We believe that people who work from home can also be converted into hotel clients. They can travel and work anywhere in the world they like. One thing is for sure, making $100,000 a month is easy.” European hotel operators continue to operate in an environment where big-name hotels such as Booking and Expedia control the majority of hotel distribution in the region. To continue to diversify and offset the risk of relying on any partner, hotel executives must continue to diversify their distribution mix options, be it consortia, GDS partners, or niche OTAs. For Europe’s burgeoning hospitality industry, this flexible distribution strategy may be the best way forward.
All friends who like to book hotels online are welcome to join. We are optimistic about the future. After all, when competing for customers at the same time as competitors, the cost savings of digital customers are nothing compared to the effect of face-to-face invitations, which will drive the future boom of the hotel industry. Let us join hands in creating the future! For true financial freedom, join Reserve today and let Reserve change the trajectory of your life. Success doesn’t come in the future, but from the moment you decide to do it.