Budgeting to deliver the highest ROI
12th September 2019
It’s that time of year again, budgets are front and centre and it’s time to make those crucial decisions that will take you through to the end of 2020. At such a time of change in our domestic and global economy, deciding where to put resource has never been so important and prioritising areas that you will win the best return is key.
When considering hotel technology as part of your programme of activity for next year, it’s not simply about introducing new hardware, in fact, with the demise of Tink Labs and their Handy devices this summer, the in-room device is probably something to avoid! At Criton, we pride ourselves on putting guests and their technology first, firmly believing that own device is the future. If our guests travel with their own mobile, laptop and tablet why put more technology in their room?
Earlier this year we commissioned research which reinforces this thinking. From 3,600 guest responses, 62% of those who travel regularly stated they use accommodation apps. Furthermore, 74% would overwhelmingly use a hotel app if their favourite hotel had one.
It’s not just about statistics though – the cost savings cannot be underestimated. For an average 100-bedroom hotel with an ADR of £200 we predict commission savings of £70,080 per annum. That’s based on 40% of the hotel’s bookings coming from OTA’s, with one in five likely to rebook and OTA’s taking a 15% commission. Imagine what you could do with that extra revenue!
Don’t just take our word for it – try out our handy new ROI calculator and see how much you could save in the next 12 months. In addition to OTA savings, you would also see an uplift of 18% in F&B income if you were to offer in-room ordering via a hotel app – music to the ears of everyone in your senior management team.
It’s vital that technology is embedded in the full guest journey. Your website is for the discovery and booking phase – but once you have that guest within your grasp, promote your hotel app to them and then engage with them pre, during and post stay by:
- Sending them targeted messages to upsell your onsite services and facilities
- Encouraging early check-in and use of your digital door key services
- Recommending your loyalty programme and encouraging them to rebook for a discount
- Promoting your bars and restaurants so your guests stay on-site and don’t go to the M&S food hall
Technology’s role is to support your team to streamline operations, drive revenue and enhance the guest experience. In our latest ebook we explore the history and future of revenue management, suggesting creative ways to improve profitability and increase guest spend.
