3 Tips to attract the largest number of tourists
As we know, these last two years have been years of changes, of reinventing ourselves, of giving way to technology today more than ever, as an indisputably necessary tool to continue with “normality” in our activities.
One of the most difficult jobs since we have been reintegrated into the market is to recover sales, which is why Revenue Managers have been forced to look for strategies to face this new paradigm and in many cases have had to readjust their planning.
That is why, in order for you to be able to evaluate in a short term the best strategies or actions to try in the next months of high season, we bring you 3 tips that can help you with it:
Review and redefine segmentation
The basis of a good segmentation work is the identification of groups of consumers that respond in a similar way to the marketing strategies. The effectiveness of segmentation depends on how well these groups can be differentiated and measured by their behavior. Ideally, start by identifying macro-segments such as transients and clusters, and then break those segments into smaller groups that are relevant to your business and measurable. The more detailed the segmentation, the more you can get out of it. Channel segmentation is key to understanding where your bookings are coming from, so for each market segment, you should be able to identify which is the primary channel: direct, OTA, Tour Operators, GDS, etc.
Take a look at the key dates on your Demand Calendar
Once the market and channel segments have been reviewed, we must study the expected demand for each period by establishing a demand calendar. To do this, we must identify “day types” according to events or circumstances that we know in advance and affect demand. There will be days of high demand, medium demand and low demand. Then we will define the minimum selling price for each day type: on high demand days we can start selling at a higher price than on low demand days.
Make sure you have an efficient fee structure
Finally, you will need to create an efficient rate structure to reach your potential customers in all segments to optimize your revenue. Use different types of rates that are aligned with your segmentation (flexible rate, qualified rates, negotiated rates, etc.) Then, offer different sales conditions to each segment using rate limits (CTA, MLOS and other restrictions) and avoiding rate cannibalization, i.e., do not stop selling a rate that we find profitable, because the demand can access a more advantageous offer.
With these three elements well defined, there is no doubt that you will see a totally different and favorable behavior in your sales.
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