Reputation Management

Webinar- Reputation Drives Revenue:

1 - What is the relationship between QGI and revenue gains?

 

Having a good online reputation and a follow-up of the customer reviews is crucial nowadays for hotelier.
As Chris Anderson from the Cornell University showed us in the video, the increasing by 1% of positive customers can affects the demand by 13,5%. As a result, this augmentation of the demand will push the Revpar by 1%.
So that, the performance of the hotel will improve as well .

2 - What person/position, in the hotel, is responsible for analysis of pricing changes based on quality index changes?

 As Victoria Edwards, Co-founder of Buckhiester Management, has mentioned, there were in the past different profile of person responsible for pricing analysis:

The reservation manager from the 1st generation (20 Years ago): managers with reservation background and strong sales fields.

The revenue manager from 2nd generation (5 years ago): were more sophisticated with more tools, more education and the ability to use new technologies

The optimal revenue manager from the 3rd generation (nowadays): need to combine all the elements of the 2nd generation, plus online marketing and sales functions.

 

3 - What new measurement will be used to measure quality scores to revenue performance?

The Quality Penetration Index (QPI) measures the online reputation of a hotel in comparison with the one of the competition.

It is calculated with the following formula:

Global Revenue Index - My hotel / Average Global Review Index - Competitive Set

Prior to this new measurement others traditional performance indicators were available:

• MPI (Market Penetration Index) = Occupancy Index.

• Average Rate Index

• RGI (Revenue Generation Index) for RevPar index

4 - Is ORM the Revenue Maximization of the future?

I do believe that ORM is the Revenue Maximization of the future, as Chris Anderson said during his presentation the online internet activities has known a considerable booming these last decades. This event will keep going with no doubt.

That is why hoteliers should use this change in their advantage, being aware of their online reputation and adapting pricing strategy. Nowadays almost every reservation is made online and one of the first steps of the customer discovery path is to check the e-reputation of the hotel picked. So, the manager of the future has to use new technology tools allowing him to better manage his e-reputation and create a strategy based on it, in order to maximize its performance.

 

My conclusion:

 

This video was very well structured, with simple explanations given by expert of the hospitality industry.

 

I really appreciated having been introduced into new concepts and trends on Reputation and Revenue managed.

 

I had no idea  about how the online reputation could affect the revenue of a hotel, and I think that thanks to all the speakers I am more aware about the important of following and analyzing guest reviews. This will help me during my professional career.

 

 

 

Victoria Palace Reputation Action Plan:

 

 

Victoria palace reputation action plan from Yaya75