Net Rate – Cost Intel’ Analytics for Hotel management company
“I would like to know our true net of Sales & Distribution costs revenues across our different properties. Great to know it for our past performance, but in order to take proactive actions and decisions, we need it also for “on the book””. This was the question and challenge given by our client.
To fulfil client’s needs Cost Intel’ Analytics module was the perfect match. This flexible module is designed to clearly understand which strategy should be the most profitable for hotels. It goes beyond the “traditional” commission costs as it also integrates all other types of Sales & Marketing costs: credit card fees, marketing costs, loyalty, FTEs…
The projects had 3 milestones:
A discovery phase of the client’s different costs and calculation method: which costs the client estimate to be part of their sales & marketing strategy? Which costs applies to which channel, segment, or source of business? Which day of weeks are at XX% commission for this channel? How should we spread over costs of Ad Hoc marketing campaigns? …Many questions and answers to find in order to move to the next step.
Next phase was the input of the costs into the system. When the cost’s information is not available at a certain level of the organisation, Profit Intelligence “cost request” feature allows to trigger automatic emails to request the missing details to the knowledgeable person. This person can then fill in the information directly on the application and the cost is automatically generated. Design of the cost setup and maintenance is an important part of the process. Cost Intel’ Analytics offers the flexibility to update costs depending on the evolution of your strategy…or partner strategy (example: my partner introduced a Virtual Credit Card payment method, but this cards has a higher cost).
Last but not least, specific “à la carte” dashboards have been designed for the client. These dynamic dashboards allow to deep dive into all the aspects of the hotels sales & marketing costs. With daily refreshed data, this hotel management company has now access in few clicks to all the information needed to take the right actions. Reports covers measures such as net ADR, booked ADR, system ADR, cost of room sold, costPAR….per channel, market segment, source of business, day of week, hotels…
