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Hospitality IT: How focusing on Digital improves NRevPAR!

Using technology and data to drive NRevPAR improvements in hospitality industry

Posted Updated
By Ketan Momaya
1 min read

Technology in Hospitality

Hotel companies need to align Marketing and IT Strategies to drive direct bookings (Search/Meta-Search, Social Media & Mobile), vis-a-vis bookings through Online Travel Agency (OTA Commissions) or retail travel agencies (GDSs).

Convergence of social networks, location-based services, and Mobile computing (“SoLoMo” ) provides ability to engage with the consumer in real-time and monetize that traffic. “Consumer journey” and buying behavior has changed massively in recent years.

Google1 has defined “Micro-Moments” in travel purchase process:

  • I want-to-get-away moments
  • Time-to-make-a-plan moments
  • Let’s-book-it moments
  • Can’t-wait-to-explore moments

Increase of direct consumer interaction from Brand.com (Ecommerce) directly contributes to improved bottom line. Reducing distribution cost results in increased Net Revenue per Available Room (NRevPAR), a key metric on management dashboard.

A well thought out Digital strategy can help repeated engagement with consumer at low/nil distribution cost. And of course helps with NRevPAR & EBITA.

  1. https://www.thinkwithgoogle.com/articles/micro-moments-travel-customer-journey. ↩︎

Technology
hospitality revenue growth
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