On the way to hospitality industry recovery, we will probably still in 2021 witness many twists and turns – opening and closing borders, loosening and tightening local restrictions, limiting guests in accommodation properties, keeping restaurants closed and serving takeaways only, limiting access to main attractions, requiring immunity passports etc. How to operate in such uncertain and difficult to predict conditions? How to prepare your property to new market condition adoption?

Channel Manager is a tool which will help you in managing your property efficiently on the way to full recovery and adapting quickly to new market conditions. Now, more than ever before, you need a tool offering you great flexibility in starting or stopping sales, modifying rates or opening and managing only selected channels instead of all of them. With a right revenue management strategy and a tool that helps you automate the most of the task you will be able to act fast and adopt your business to a fast-paced environment.

What you should take into consideration on your road to recovery?

#1 Price flexibility is super important now – use grids functionality

For such unpredictable times we have now you should choose the right pricing strategy and have an option to change it easily and quickly when needed. And here comes the grids functionality that allows you freely and within a few seconds reload prices. Think in advance of possible price options at your property, introduce up to 30 ready price lists and change them in seconds whenever you need it. Current fast-paced environment might not give you much time to think how to react to changing market conditions. You need to be prepared and act really quick.

While working on a new pricing strategy have in mind that some of your services can be closed (e.g. restaurants, gym, spa) – adjust your prices accordingly or think about other values you can provide instead. Of course you can decrease prices in the hope of stimulating demand, but this may not be the best idea, especially if it comes to your property brand image. Think instead about targeting the new customer groups – those who are ready and able to travel at a given time. The right move will be also making the whole booking process as flexible as possible. This should influence booking decisions of your potential guests.

#2 Use the Channel Manager to open, block or restrict sale in selected periods

Having a reliable Channel Manager is now more important than ever before. Restrictions are now starting to ease but every time they may be tightened back again, thus you need to be prepared for every single scenario – bookings increase and wave of cancellations, restrictions easing and imposing new ones. To handle these you require a tool that allows you to easily manage the whole booking process and sales in all channels.

In case not all channels should be made available during certain periods switch to managing availability per channel. Be ready for the reloading system fast when demand is back. Having such a support in Channel Manager you can also think about testing new channels and attracting new groups of customers. In such a difficult time for your business you can’t rely on a few distribution channels only.

#3 Introduce automation to manage guest limits in your property with revenue rules

In difficult pandemic times you need to be prepared for adopting in a timely manner all newly imposed restrictions to stop spreading the virus. Thus there may be a need to temporarily close the hotel and cancel all reservations within a few days only or adhere all the bookings to the current guests limit.

This makes managing your reservations more difficult than ever before and really time consuming if done without proper software. Here also a good Channel Manager will give you a helpful hand. How? By allowing you to manage guest limits in your hotel with revenue rules. You don’t need to do anything manually and monitor the number of bookings all the time. Set up a proper rule and be sure you won’t welcome more guests than allowed in given time.

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Get the RMS now, pay when the demand is back!
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Do you think RMS is too expensive a tool to invest in now? Or that it only works when there are reservations?

We want to support the hospitality industry and invest in your business by helping you prepare for the return of demand. For the first time, we are offering a special trial period on Price Optimizer RMS.

With the RMS support package, you will get:

1. Our certified revenue managers will provide comprehensive consultation on the sales and distribution strategy for your hotels.
   2. We will connect and configure Price Optimizer Start RMS for all your facilities.
   3. If the hotel is closed and staff is reduced, PO RMS will optimize the future dates of stay.
   4. Whenever there is the slightest increase in demand, the PO RMS will respond automatically, generating an increase in bookings and revenues.
   5. You can focus on keeping your guests safe and comfortable.

You will use the tool free of charge as long as the occupancy is not sufficient to cover the cost of the tool. Each hotel is unique, so details are arranged individually.

You might also be interested in reading:

YieldPlanet named HRS IT Preferred Partner!
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YieldPlanet has become a Booking.com Premier Partner for another year in a row

Skiing in most European winter resorts has been restricted, due to latest outbreak of coronavirus pandemic. Shutting ski lift to stop the spread of Covid-19 was imposed widely by either national or local governments.The season between Christmas through New Year and January 6th Epiphany holidays is traditionally the most important time of the year for many skiing properties.

Now, as hotel revenues related to the ski season at Christmas and the New Year are mostly gone there is still a cautious hope for some benefits when the infection rate slows before the end of the winter and part of restrictions are lifted. At the beginning of 2021 we will probably still see dramatic changes in demand for skiing properties related to loosening or toughening restrictions or quarantining travelers from specific countries or regions at short notice.

Travelers faced with extremaly high level of uncertainity this winter season can be more willing to book if they are not afraid of high cancellation penalties in case of rapid changes in travel plans. That is why major OTAs like Booking.com, Expedia or Airbnb are encouraging skiing properties to address dramatic changes in demand by attracting bookers with flexibility in cancellation policies, refunds and easing minimum length of stay restrictions for 2021 stays.

Booking.com has prepared by far the most comprehensive business advice program for skiing properties in these difficult times. The program consist of several opportunities for each property in 4 major pillars: offering flexibility, reducing workload, securing bookings and setting up a sustainable rate plan. A mix of opportunities may work well for skiing properties to get more bookings when restriction are loosened, just to name a few options:

– Allowing free cancellation for longer can gain properties bookings from travellers in the current situation. Free cancellation rates are generally the most expensive and the most booked rate options.

– Offering last minute deals will help properties catch the attention of guests looking to book stays on short notice. As demand can pick up any time before the end of skiing season it is worth considering setting up promotions in advance.

– Properties can display the extended health and safety measures they are taking on their property page on Booking.com. Additional information about hygiene, social distancing and food safety can reassure potential guests and give them confidence to book.

– Offering mobile rates increases properties visibility in the search results for mobile users. It also increases mobile bookings by 26%. Once the slopes are made available for skiers again increase in last minute bookings via mobile devices is expected.

– Implementing child rates can result in more family stays. Families stay on average 28% longer and book 27% more stays than couples and solo travellers.

YieldPlanet supports all recovery plans prepared for properties and accommodation managers. All recovery opportunies be found and processed in YieldPlanet Channel Manager Opportunities section as picture above.

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Transitioning from short stay tourism to the mid-term housing market for a sustainable rental income

The short-term rental market, with guests staying anywhere from a few days to a few weeks, has enjoyed an explosion in demand followed by an influx of investors over the last few years. Unfortunately, the COVID-19 outbreak has caused any excitement for a good summer season to evaporate. At the same time longer term projections for the short-stay market are also under threat by the implementation of restrictive legislation in many of the most popular destinations around the world. Instead, investors might be better off setting their sights on the mid-term rental market, exchanging high, but volatile income for sustainable, predictable cash flows that enable growth.

When demand plummets overnight

The world had seen travel restrictions before, without any real long-term consequences. But then, countries like Italy started quarantining entire regions of the country and major companies started sending their workforce to work from home. For short-term accommodation providers, what was supposed to be a record summer full of travelers, tourists and weekend wanderers, turned into a market that ground to a halt almost completely over the weekend. Google Trends shows us that the interest in the world’s biggest bed-and-breakfast site decreased by over 75% in a matter of weeks. Worst of all, nobody really knows when the Corona crisis will be over or, perhaps more importantly, if things will even go back to the way they were before the virus?

“Google Trends shows us that the interest in the world’s biggest bed-and-breakfast site decreased by over 75% in a matter of weeks.”

“Nobody knows when the Corona Crisis will be over, nor if things will even go back to normal.”

When the rules of the game change while playing

At the same time, the short-term rental market is facing local threats that could impact the long-term viability of the global short stay market. Where acquiring and renovating properties was well worth the investment due to virtually nonexistent short-term rental regulations and premium prices to meet the demand, this will no longer be the case in the near future. In many countries, the already volatile housing markets of popular cities were further disrupted by the arrival of a large number of short-term providers. As a result, governments and municipalities all across Europe have passed or are drafting legislation to regulate the short stay market. These measures range from requiring special permits, capping short stay rentals at a max of 60 days a year, setting up quotas for popular neighborhoods and even include contractual constraints. For many providers, this means a large chunk of their projected income is no longer guaranteed.

“Many short-term providers just like you are looking for an alternative.”

With both the long and short-term results of the market under pressure, it’s not strange that many short-term providers are looking for an alternative. Thankfully, there is no need to jump ship. Instead, a shift in strategy in order to meet the needs of your local housing market could mean a relatively painless solution.

Shifting gears

While demand for the international short stay market has collapsed, housing markets across Europe are still buckling under demand from locals, international students and highly educated expat workers. Rental prices have been steadily rising for years, but still the supply cannot meet all the demand. 

While your target audience is different than before, they are still hungry for ready-to-go rooms, studios or apartments close to their work or studies. The hard-working tenants that will stay with you for anything from a semester to a year are also willing to pay extra for the services you already provide to the city hopping weekend crowd. International students or expats often arrive on Saturday and start work on Monday. This means they are happy to pay extra for the fully equipped kitchen, the weekly cleaning service, high speed internet and included Netflix account that allows them to simply unpack their bags and focus on settling in.

What’s different is that you’re exchanging weekend guests for longer term, contracted tenants. For you, this means less frequent mutations and stable long-term income through monthly payments. At the same time, you avoid the risk of being stuck with a tenant for years on end by focusing on the mid-term rental market. All in all, this keeps your business agile, able to respond to changes in demand and seasonality without your cash flow running dry over the weekend.

 “… give yourself the stability to focus on the growth of your rental business.”

At the same time, these longer-term tenancies allow you to scope a more robust projection of your future rental income. You have plenty of time to find new tenants and you know exactly how much your home will earn you in the coming months. This gives you the stability to focus on the growth of your rental business and makes it easier to secure the additional funding to realize that growth. After all, your now stable rental income counts towards securing a loan for your next properties. Over time, your business will grow into something more and more passive and sustainable for the long term.

Finding a new home for your business

Even though your properties are ready for a transition, you are still entering a new rental market. You’ll be dealing with different legislation, new target audiences and the market’s own quirks and pitfalls. Where short stay platforms are king in getting your place booked for the weekend, you now need a different strategy to convince potential tenants to come live at your place for months on end.

 “Roughly 60% Tenants on HousingAnywhere book their stay for a period of 3-6 months.“

As a housing platform, HousingAnywhere has over a decade of experience in matching landlords with the right tenant time and time again. Roughly 60% Tenants on our platform book their stay for a period of 3-6 months. Before, guests might have booked blindly, but for longer term tenants, communication is now key. For example, tenants will reach out to you, introduce themselves and ask questions. Initially making it more time consuming than a blind booking but making it much easier to find the right match for your place. This might seem strange at first but getting to know a prospective tenant will save you time and effort in the long run by preventing friction, damage or rental arrears. Additionally, bookings now give you peace of mind for months on end, instead of having you hustle to get your accommodations booked every weekend. 

Pricing your place is also a different ballgame, as you need to adapt to new kinds of seasonality and different pricing strategies based on location, quality, and property type. HousingAnywhere helps landlords navigate these changes, using data to predict the optimal pricing strategy in their neighborhood, using the  RentRadar tool. The platform also includes a Rent Index data report so landlords are also kept up to date with the latest trends in the European market.

Booking.com Recovery Toolkit
Guest communication tools: why guest engagement is important?
Strategies for hotel revenue managers in COVID times: brace your business upfront! Part II
Strategies for hotel revenue managers in COVID times: brace your business upfront! Part I

The COVID-19 has brought unprecedented challenges both for society and our industry. It is clear that the unconventional approach is more important than ever before to tackle the far-reaching effects of Coronavirus pandemics.

Booking.com has gathered market insights, tools, and advice from experts to help hoteliers and accommodation managers work through these difficult times. The company recognizes three stages of recovery:

1. Lockdown with extremely limited travel activity
2. Recovery characterized by slowly rebounding of domestic travel
3. Extended recovery described a gradual increase in international flights and travel

The bad news is that as of the end of July 2020 around 7% of all countries are still in the lockdown phase, but the good one that 20% of countries benefit from the extended recovery stage.

Depending on the recovery stage and market conditions Booking.com has prepared a recovery action plan for all properties focused on 4 pillars:

• Reducing workload by e.q. informing potential guests on Health and Safety standards so that travelers can find extensive hygiene, food, and distancing measures the top of a property page or letting properties to modify reservation stay dates with no restrictions.
• Offering flexibility by allowing guests to book in advance with flexibility and with the possibility to cancel up to 24 hours before check-in or encouraging partners to allow children in their property to attract family travelers
• Setting up a sustainable rate plan by offering travelers a variety of rates and policies that can attract potential customers like for example using occupancy-based pricing, mobile rates or setting up family rooms and pricing
• Securing bookings by boosting visibility and ranking high on Booking.com’s search pages which can be achieved via joining Genius or Preferred Programme

YieldPlanet cheerfully supports all recovery plans prepared for hoteliers and accommodation managers. All recovery suggestions can be found and processed in YieldPlanet Channel Manager Opportunities section:

The recovery toolkit by Booking.com consists of 25 selected options, please check them either in YieldPlanet Channel Manager Opportunities or directly at Booking.com extranet.

Guest communication tools: why guest engagement is important?
Strategies for hotel revenue managers in COVID times: brace your business upfront! Part II
Strategies for hotel revenue managers in COVID times: brace your business upfront! Part I
Rate management in the peak season with YieldPlanet’s Channel Manager

While COVID-19 has brought the hospitality industry to a standstill, at YieldPlanet we believe that by providing our clients with the right advice we will win this battle together. Therefore our team of experienced and certified revenue managers has prepared a list of the tips and recommendations of what you can do to start getting ready for the market bounce back already today and outpace your competitors. Check out the first part of this anticrisis list here [LINK] and keep learning!

1. Local market.  

When the situation starts to improve, and life starts getting back to normal, movements between countries and cities still will remain difficult during some period. The domestic travel most probably will be increased in comparison to previous years. 

Check your reviews
Local people have a bigger choice, so an excellent online reputation will be your pros. Answer to your reviews – the feedback is important. Let people know about all the services you offer and keep staying in touch. 

Local people area
Review the most popular channels and forums that local people use when they are looking for plans for the weekend. Check the integration list,  to find channels local people use. Every area has its leaders. Think about how you can improve your offer for local people (packages, promotions) and try to find the best platforms to present yourself there. 

Review your competition
You can start by checking your competitors: packages, prices, promotions. Use additional value to complete your offer, give to your guests a bit more than others (welcome drink, discount for the dinner at the hotel restaurant, free parking, possible late check out etc.). To be updated with the latest news you can follow your competition at social media and see what they offer, analyse their offers and improve yours. 

2.Data 

Update your competition set
Monitoring the market situation, don´t forget to keep the list of your competition updated. Evaluate your strengths and weaknesses and compare all these points with your competitors.
Do some research at your engine using the name of your city, famous sights and conference stages nearby, extra service or good points you have (SPA, terrace view, central location, Eco-friendly etc.). You will find more accommodation options to compare. You can also open popular channels and travel platforms, find your hotel and check similar accommodations, recommended below. Even if you know that some of these recommendations are not your competition, take a look to know what your potential guest could be proposed to. 

Analyse the data you have before making changes
Take advantage of the reports you can find in the analytic systems you work with. Examine the data provided by the revenue management system or channel manager to understand your clients better. This will help you work with prices, rate plans and will assist you to optimize your current structure. Data analysis can prompt you unexpected solutions: additional services cost changes, differences between categories, new distribution ideas, promotion ideas etc.
Maybe it’s a good time to finally implement a proper segmentation? 

Update your event calendar
Most of the events were cancelled but some of them were rescheduled. Update the calendar and prepare the strategy in advance. 

3. Content 

Attractive pictures and descriptions
Capture attention, convey the hotel mood, give clear and complete information about the accommodation, compel a sense of confidence that this is what the guests were looking for and let them be happy with their choice. Take as an advantage the time you have now to choose truly “sweet” pictures. Correct your descriptions if needed. Try to provide only necessary information to win every second of the customer’s attention.  

Adjust the information at all OTA you are presented
Don´t be afraid to delete old pictures if you have new ones. Use different pictures for each of the different categories you have. The customer has to clearly understand the distinction. Check the information on additional services, taxes and cancellation policy. 

Give the priority to your own website
This is not only the hotel face but also the most important booking channel. In times of crisis, lower commission payments will be an absolute help in reducing hotel expenses. Verify translation into different languages, maybe you have time to add a new one, based on the historical data about your guest’s nationality. 

Extra tips:  Always put yourself in the customer’s shoes. What is she going to look for after the long time of social distancing? What kind of additional services will be mostly appreciated? How does she want to feel? Try to show it from the very first moment. 

4. Direct reservations 

Website conversion
Check if the booking engine is working properly. (When was the last time you tried to make a reservation at your own property?) Make sure that there are no mistakes in settings and whether the hotel information is clearly stated. Ask your account manager or website support what can be improved to increase the conversion. Check with them the rate plans and cancellation policy information, photos and descriptions of all room categories you have. Look into your promotions and special offers. Think what else you can do to make your customers finish their booking at your webpage? People don’t like to spend a lot of time reading conditions choosing the appropriate option. Help them with their choice, make it user-friendly, simple and logical. 

Digital marketing
While under the quarantine your marketing budgets might have been cut, the activity of people on social media has increased. Activity on social media doesn’t cost money if you already have some visual content and a good idea. Think about an attractive promotion with flexible conditions. No need to lower the price too much, but you can include more extra benefits, making your offer more interesting and complete.
Inform your followers about the measures taken due to Covid19 (increased attention to cleaning, taking care of the guests and hotel staff healthy etc.). Actively answer questions the guests might ask. Keep your answers polite and positive to maintain good vibes. 

Dealing with cancellations
Try to win back those who have cancelled their bookings recently. Reach out to them and offer them a special rate for the long term stay date – you already got their interest and you can still use it. It can be a direct email for the guest who made a direct reservation or, if still there is a possibility, you can send an email through the OTA chart.
Depending on the additional services you have, you can offer a discount for dinner in the hotel restaurant or free breakfast, a discount for accommodation or a free massage in the SPA.  

Customer base
Reaching out to your guests email base is almost free of charge. Write your loyal customers a personal email. They will appreciate your attention and caring. Inform about new packages and promotions you create. Give the special bonus or an extra discount for the first couple of months. 

We have a special Price Optimizer Revenue Management System helping program where we offer 3 months for free. Learn more here.

You might also be interested in reading:
Strategies for hotel revenue managers in COVID times: brace your business upfront! Part I
Rate management in the peak season with YieldPlanet’s Channel Manager
Price management: the key when selecting hotel technology