Jonathon Liu, VP Pricing and Revenue Management, AccorHotels
Automatically Generated Transcript (may not be 100% accurate)
Maria de lever the pricing and revenue management team here in the UK for apple hotels owned. And in UK. When we consider ourselves an underdog car by just 200 hotels. Amen we have many competitors against us like the premier in the travel lodgers Knight studio Hilton which have. Alot more hotels and our so our advantage is that where we're still smaller than an Agile. But we do face some really big challenges. One of those key challenges is just the sheer breadth of friends that we we operate in in this marketplace. Then what's key to all those supposed friends here Ibis budget and then it's worth one. Ride off into the sort of the Savoy Yemen raffles products is this need for data. And I guess in the hotel industry Wii we've had data for many many years. But it's S essence of downloads that integrity of data that is also very very critical. Now as we see more systems as we have access to more data it's so very important that we don't bring that down together and actually make it really useful. Now approach the core hotels is to bring a lot of different partners in the takes place. To really push their advantage in then stay on top of the technology. As hotelier us win good of the guest experience. Actually when the rate of the guest experience. But we're not taking. So we've put a lot of focus in defining the right partners and working with those partners to really develop the tools that we use on an everyday basis. Now traditionally in hotels we have we focused our loss on our systems in terms of PMS data that's always been very transactional. We know we're in the guest is talking Weiner Hamid days now we know what they're spending. Oh we know whatever room types and rate levels but what we're trying to do now is to take that to the next level M bring in the other data that sits around that. More around behavioural analytics than looking at how the guest is dreaming. How their shopping Palo browsing in the combining that with that transactional data. So it's moving from. Systems leads transactional space to more revenue culture across the whole business. Now we've been out to extend their revenue management culture to take a total revenue management surfaced some hotels like the Savoy of London. We revenue managing right down to the cocktail that's being served in the American bar. It's not by chest that the way to comes up and suggests a cocktail. We're using our e-commerce or out. What alcohol when buying you know what price and then we're designing. Our cocktails around those prices to see what is most profitable roster then push those cocktails. We also look at our shops so in the Savoy also as you walk in as a small chocolate shop. There's a reason is the Dutch offer on the third shelf. We know how people are spending we know when they coming in and we know what they're buying in particular. So we have we're taking it to a very minute level. But it's something that we can actually apply across all hotels beard from an Ibis budget. Prior to the Savoy. So what we're really trying to focus on is bringing although they die together. Two to really bring their whole behavioural sciences right through to the transactional data to get an end to end approach from our data. From when they're dreaming right through the state experienced any into the post today. Now half versus then that we we use inner core hotels has been on the revenue management systems themselves them. And we've developed our people to be very analytical way we do a lot of training. But over the last three or four years we better been cutting down the amount of money that we're spending on the technical training. N deploying that more into the soft skills. We've been trying to change our analysts. Into strategists. Becoming more commercial and it's been really important to tick get those revenue managers under stain the commercial reality. Under selling marketing and sending sales relationships. And the saying the win behaviours so as we bring our revenue managers up through the ranks. We're able to look at the business holistically and take a total revenue approach. One of the key areas where we've really focused on is developing them the right time on the business. Now for most of my revenue managers there in the office for. Daily 738000. Week. Once they take out the I mean the training. Their brakes and that's listing. I really have twenty quality hours from each of those revenue managers. So what we're trying to do is make sure that twenty hours is as most profitable. As the most efficient as we liquor maker. So we look to a technology partners and we look took automated as much as possible it comes to their end in point of view. What we trying do is easier technology partners like ideas but like easier and less like 28 insights. To bring as much data to us in a very died adjustable way. Rather than having my team actually taking raw data. Ending creating the reports themselves. As much as possible we're turning data into dashboards. And by bringing those dash forward into the business we can then share that information across the entire organisation. No revenue managers. Need to mean petrol they need to be able to influence summer might best revenue managers. Don't have that many good analytical skills but what they do has. Is the ability to impacted intones the general managers. Deep impact and influence the sales teams to impact and influence the mapping teams to drive the commercial strategy overall. So a lot of our focus is taking net political. That skills that they combining it with the soft skills of impact influence and persuasion. So what they delivers to us is an optimal. Revenue opportunity. Yes secondary to that is the experience. And every single low revenue managers. Which we centralised into London looking out UK. Also having guest experience. Part of their bonus. It's important for them to be having conversation. With their general managers with the people on the hotel sites to make sure that what we're pricing. What we're delivering to the customer is coming back through a dinner guest experience. So it's going their balance right and ascending that the customer lifetime value. Isn't just about one transaction. It's about having their customer come back. Time and time again spending their little bit more upgrading but also under saying we need to debt customer. One critical thing that we're able to do now systems is to track each individual with a very unique idea. And with innate unique lady they may have two or three different profiles. So for example I have three profiles that sit within our system. I head Jonathan who travels on Tuesday's and Wednesday's two Paris. On business. I had a certain hotel logo to its close the office at one person so although Darden is relevant for just myself on business. My second profile is about when I'm travelling on later. Long weekends. Are also different styles of hotels usually UN SM galleries mall boutique friends. There'll be indulging in what a lot of food and beverage can activities at the hotel. The third profile has is one I don't read a way to conference's and things like Vietnam travelling as part of a business group. Now what way will do listed individually segment those three profiles on the one unique ID. So when we go out to our customers in our emails or throughout our text messages were able to actually put the right type of offer in front of me. So in the one email I may have three different offers. One is about travelling to know tell suites on the business offer the other all be a long weekend step. So it's taking their additional information about the behaviours of their individual guess and then marrying them the different offers that we can make. But to make this happened is it's really important that we all look from the same data source. So that's marketing and that's the commerce duties in revenue management its sales as well. And what we're we nailed to do is is filled with data like we a lot of providers which brings all the different information into 1 central source. So we are feeding in our market share we're feeding now. Guest reviews were looking at. Then this is so when poorly when we're looking against the different types of activities that when making now organisation. Recently eyes in the media we're talking about the French market coming into the UK. Therefore our revenue management point of view I go straight to the PM SNC my French customers. Might e-commerce team looking at those customers booking for the French point of sale. And had nothing looking people who just French in general. Now taking those three different views he give us three very different. Ideas in the business and if we're getting three different points of views. Then our actions will be different of that so it's important that we look at the same data across all parts of the business. So Thursday DB three takeaways for this afternoon. The first one would be about a broad new data approach. Don't just look at the transactional data. Look at the behaviour doubt your web traffic your conversion. How people coming to a hotel helped fuel coming to your brand that's really important because you can influence so much of the top of the the funnel. The second thing. Align the time of your revenue management professionals to add value to the business. Don't let them checked people in when the hotels busy don't have in clearing plates of breakfasts because the hotel's full. Make sure they your automating as much as possible to achieve your revenue management talent the time to analyse and setup time to develop that strategy. And lastly and probably most importantly is taking that single view. If everywhere studies on the same block an understatement divergence coming into the business. The alignment will come through in your strategies for the liable come through your actions. And with fair. You optimise your revenue. Any optimise your guest experience.