In The News
IDeaS - Industry Insights With: TravelClick’s Greg Sheppard
Mike Chuma, IDeaS
Read the story at IDeaS.com.
Announced in 2016, IDeaS and TravelClick partnered together to enhance revenue management strategy by combining the future-looking competitive market intelligence of TravelClick’s Demand360 with the powerful best-in-class analytics of IDeaS’ revenue solutions.
Mike Chuma, vice president of product strategy with IDeaS, had the opportunity to sit down with Greg Sheppard, senior vice president of business intelligence for TravelClick, to discuss the joint offering and the capabilities both innovative companies are bringing to hoteliers around the world.
MC: Demand360 is a well-established tool in the hospitality marketplace now. What have been the greatest benefits Demand360 subscribers have seen from gaining access to this level of insightful reporting?
GS: The most powerful part of Demand360 is that it offers customers insight into the future and gives hoteliers the opportunity to be proactive with their revenue management strategies. With Demand360, subscribers can see their total reservation data versus their competitive sets looking forward 365 days. It is the only competitive market intelligence available to the hospitality industry that provides future visibility into your market and shares performance across all distribution channels and segments.
This complete picture of the marketplace helps hoteliers to develop a holistic understanding of the hospitality industry and in-market trends so that they can identify strategies to capitalize on revenue opportunities and make smarter decisions. Hoteliers can also identify need periods in the future and change their strategies to drive revenue per available room (RevPAR) on those days. Our most successful customers set a strategy, use Demand360 to monitor that strategy and make tweaks when necessary. It’s all about being proactive – we like to ask customers, “If you knew your competitive set’s future occupancy, would that impact your strategy?” The answer is always “Yes!”
MC: Driving direct bookings or the most profitable bookings to a hotel has been top of mind in the industry this past year. How does Demand360 market intelligence help facilitate a revenue strategy that supports this effort?
GS: Successful hotels understand how they are performing across channels, and Demand360 makes it easy to quickly see how you are performing at a channel level. With Demand360, subscribers can see their occupancy, average daily rate (ADR) rank and RevPAR rank versus the competitive set across all channels – Brand.com, GDS, OTA and Direct/Central Reservation Systems.
Understanding your channel mix, empowers hotels to make the right decision for the right situation. If you are driving more business from OTAs than your competitors. that is a great opportunity to grow RevPAR by shifting share to a higher-rated channel, like Brand.com or GDS. However, if you are looking to grow market visibility and increase your base of reservations, OTAs are a powerful tool.
We have found that hoteliers without Demand360 have no idea how much business their competitive sets are driving from Brand.com, GDS or OTA and are blown away by the power of the data. A few quick tweaks to your channel distribution could mean large dollars for your hotel.
MC: IDeaS and TravelClick are very excited to expand their partnership and bring the forward-looking market intelligence Demand360 provides into an automated revenue management system to drive a more powerful demand forecast that leads to better revenue strategy decisions. Do you think hotels that are able to leverage the power of Demand360 in their RMS analytics will have an advantage over other hotels in their market?
GS: Absolutely, and this is why we are so excited about the partnership. The addition of Demand360 data into the revenue management system means that the RMS forecast can now take into account your competitive sets’ complete reservation data (occupancy, ADR rank, etc.) giving you a better suggested price.
For instance, if you knew that your competitive set had low group business on the books for a day in the future, and you really wanted to win that group business, wouldn’t that impact the price that you were offering? Would you go in a little lower to secure that much-needed business? I definitely would. Now with the integration, your RMS has the ability to take this exact information into account and quote a more appropriate price. The opportunity to feed Demand360 data into your RMS’s algorithm and make it even smarter is really powerful.
MC: In addition to integrating this data in a revenue management system, what other opportunities do hoteliers have with the insights provided by Demand360 data?
GS: Because of the nature of the data, everyone’s first thought is to use Demand360 to make more informed revenue management decisions, but over the past few years we have seen the growth of other departments taking advantage of this unique data set. Marketing groups are using the data to measure the impact of campaigns and determine when to run future campaigns.
By having the competitive set ranking data as well as your own, you can benchmark the true impact of a campaign and whether the pickup you saw was across the competitive set or just at your hotel. CEOs are using the data to explain to their boards how their brands are doing versus the greater market, and web teams are using the data to optimize their Brand.com versus that of competitors. The data is truly being integrated across hotel companies.
MC: Lastly, what does the future hold in store for Demand360 market intelligence and how will it further serve the hospitality and revenue management community?
GS: At TravelClick, we are constantly trying to predict and meet our customers’ changing needs. To do this, we pride ourselves on holding customer feedback sessions and having an open dialogue with users. In addition, we stay on top of market trends and have a nimble technology team that is constantly focused on innovating our solutions. We also have a robust roadmap coming up; to give you a quick sneak peak, one of the new features that you can expect in late 2017 is all about pushing the most impactful data directly to hotels.
With all of the data that’s available today, it can be challenging to sort through what’s most important and where a hotel should focus. We are working on a way to push to hoteliers what we think is the most important data. Our goal is to help them get 80 percent of the way there with 20 percent of the work, which will change how hotels interact with our data on a daily basis.
Join IDeaS and TravelClick as they participate in an industry panel of leading hospitality analytics and data providers at ITB Berlin on March 8th, 2017 at 11:30am to discuss the convergence of powerful guest data to drive more profitable bookings for hotels.