Why do hotels hold promotions? Set promotion algorithm, why can it be done well?

Original: Li Sheng

Why hotel promotes

What is point of promoting a hotel

Let me begin

First question:

Why do hotels hold promotions?

This question

A friend asked me a question

At that time

I didn't answer his question. No why

I don't answer

The reason is that in his mind

If product positioning is accurate

If market is firmly tied, there is no need to engage in promotion

He thinks so-called stock is a price cut

The business is so good, what kind of advertising do you do?

Let's talk about promotion

Promotion. Relevant in economy

Also about

Two concepts

One,

Perfect competition.(perfect competition)

Two,

Imperfect competition” (imperfect competition)

Understand so. In so-called

"perfect race condition" just means

Transaction of product in terms of price

Buyer or seller

It cannot be influenced by controlling number of purchases and sales

Market Information is also completely free

You know them

Which product to buy and sell and what is price

And no bargaining

Above

Do you understand what I mean?

to

Non-ideal race condition

Simply put:

It's just the other way around

This refers to market

The

Products sold by each seller are different

in terms of quality.

Incomplete circulation and incomplete symmetry of information

There is a phenomenon of bargaining, you know?

But in

Non-ideal race condition

Products can offer right product

at right time.

At right price through right channel

Sold

Eligible guests, this is main idea of ​​hotel revenue management

Therefore

Why hotel promotes

Due to product attributes

Hospitality products have several features:

One,

Invisibility

Second

Cannot be stored/transferred

Three,

Significant seasonal fluctuations

Fourth

Simultaneity of production, sales and consumption

There are intangible assets

The basis of hotel products is service

.

Providing experiences

to clients

The hotel is touchable

Products are nothing but carriers of intangible services

You can also say

Hotel products are a combination of tangible products and intangible services

Prohibited from storage/transfer

Hotels, rooms and other facilities are not rented for one day

You can't create value

It cannot be stored and sold later

as an industrial product.

while guest is staying at hotel

Purchasing only useof hotel room and other services

Significant seasonal fluctuations

Demand for hotels is high during peak season

Low season weak demand

Hotel needs

Frequently subject to changes in foreign markets

Simultaneity of production, sales and consumption

Hotel products are produced locally

Sell locally, shoppers consume locally

This feature

It has been decided that production and operation of hotel should be limited

by area.

Market limited

I'm talking

Second question

How important are hotel promotions?

I can split it into two corners

Six values ​​for you

Hotel corner

One,

Drive traffic

for a hotel

Two,

Increase hotel revenue

Three,

Increase competitiveness of hotel

Customer's point of view

Four,

Reduce time and costs

for clients by solution

Five,

Create consumer habits

of your customers.

Six,

Improve the overall guest experience

Hotel promotional price settings

This is epitome of comprehensive competitiveness

Based on historical data to understand client profile

Therefore

For market segments, product structure

Pricing methods, consumer habits, sales channels

Timing of sales, risk of sales

Risk avoidance and other multiple levels

Perform combined analysis across multiple channels

Multiple time options, multiple product combinations

Several price formats

Submit

Client marketing tools and solutions

Price plays a 50% role

Hotel

Advertising is based on two aspects and six values

What unites

Time, Product, Price, Channel, Customer Source

Five elements to set

When

After making a promotion plan

Look at following questions

Your

Can a promotion plan increase hotel traffic

Promotion

Between driven traffic and organic traffic of hotel itself

What are conflicts

How to avoid and solve

Rate

operating income

derived from all traffic

This is a increase or decrease for hotel as a whole

Maybe

Give hotel that competitive edge

.

And other client-level issues...