Hotel Revenue Management Pricing out Social
A hotel’s social reputation can have a big impact on a guest’s willingness to book, and hotel operators are tying the information they can glean from social networks into their revenue management strategies. Hotel Management spoke withTom Magnuson, CEO of hotel services organization Magnuson Worldwide, on how social sentiment analysis and revenue management are becoming linked.
“We try to find what is the best data that’s going to give us a sound foundation for a good pricing strategy, and utilizing review data is going to be one of the key anchors of our revenue management strategy going forward,” Magnuson said.
While Magnuson said revenue management in hotels has not been quantified to the extent it has in other sectors, such as retail, incorporating analysis of social media can provide another valuable signal on which revenue managers can base their judgments. “I’ve found that there is no certifiable science of revenue management, just as there is no certifiable science in public relations,” he said.“It’s largely guided by a collection of personalized ad hoc decision points. The best strategies are pretty basic.”
(Read on at Hotelmanagement.net)