How do you optimize your hotel revenue mix across different channels?

1 Analyze your current revenue mix and channel performance

The first step to optimize your revenue mix is to understand your current situation and identify your strengths and weaknesses. You need to track and measure key metrics, such as occupancy, average daily rate (ADR), revenue per available room (RevPAR), and channel costs. You also need to segment your demand by channel, customer type, booking window, length of stay, and seasonality. This will help you to see which channels bring you the most revenue, which ones have the highest or lowest conversion rates, and which ones have the most potential for growth or improvement.

2 Define your revenue mix and channel goals and strategy

The next step is to set your revenue mix and channel goals and strategy based on your analysis and market conditions. You need to decide what percentage of your revenue you want to generate from each source and channel, and how you will allocate your inventory, rates, and marketing efforts accordingly. You also need to consider your competitive positioning, your target segments, your value proposition, and your distribution costs. Your revenue mix and channel strategy should be aligned with your overall business objectives and customer expectations.

3 Optimize your direct channel and website

One of the most important aspects of optimizing your revenue mix is to increase your direct bookings, which usually have the lowest cost of acquisition and the highest customer loyalty. To do this, you need to optimize your website and booking engine, making sure they are user-friendly, mobile-responsive, secure, and fast. You also need to showcase your unique selling points, offer attractive rates and packages, provide clear and accurate information, and use high-quality photos and videos. Additionally, you need to leverage your email marketing, social media, loyalty programs, and online reputation to drive more traffic and conversions to your direct channel.

4 Manage your OTA relationships and contracts

Another key aspect of optimizing your revenue mix is to manage your OTA relationships and contracts effectively. OTAs can help you reach a wider audience, increase your visibility, and fill your occupancy gaps, but they also come with high commissions and lower customer retention. Therefore, you need to negotiate your OTA contracts carefully, choosing the right partners, commission rates, inventory allotments, and cancellation policies. You also need to monitor your OTA performance regularly, using data and feedback to optimize your rates, content, and reviews. Moreover, you need to use OTAs as a marketing tool, not as a main source of revenue, and try to convert OTA customers into direct bookers.

5 Diversify your channel mix and partners

Another way to optimize your revenue mix is to diversify your channel mix and partners, exploring new opportunities and markets. You can use different types of channels, such as wholesalers, global distribution systems (GDS), metasearch engines, and niche platforms, to reach different segments and regions. You can also partner with local businesses, events, attractions, and influencers to create cross-promotions and referrals. However, you need to be selective and strategic about your channel diversification, ensuring that each channel adds value to your property and aligns with your brand identity and standards.

6 Monitor and adjust your revenue mix and channel strategy

The final step to optimize your revenue mix is to monitor and adjust your revenue mix and channel strategy regularly, based on data, feedback, and market trends. You need to use analytics tools and reports to track your revenue mix and channel performance, comparing them with your goals and benchmarks. You also need to solicit and respond to customer reviews and feedback, using them to improve your service quality and customer satisfaction. Furthermore, you need to stay updated on the latest industry developments, customer preferences, and competitor actions, adapting your revenue mix and channel strategy accordingly.