What's Happening?
Hotels are being advised to participate in Black Friday campaigns, which have expanded beyond the traditional one-day event to include Cyber Monday and Boxing Day. The major Online Travel Agencies (OTAs) are investing heavily in marketing these campaigns, offering hotels an opportunity to gain visibility. However, hotels must strategize to ensure these promotions align with their business goals, such as setting minimum stay restrictions and promoting deals through direct channels.
Why It's Important?
Participating in Black Friday campaigns can significantly boost a hotel's visibility and attract potential guests looking for deals. However, without strategic planning, hotels risk losing revenue by offering steep discounts. By carefully managing promotions, hotels can protect their average daily rate (ADR) and ensure that the increased visibility translates into profitable bookings. This approach is crucial for maintaining financial health, especially during high-demand seasons.
What's Next?
Hotels are encouraged to implement parallel promotions and adjust their strategies to maximize the benefits of these campaigns. By setting booking limits and selectively applying discounts to certain room types, hotels can optimize their revenue management. As the campaign period extends, hotels will need to continuously monitor market trends and adjust their strategies accordingly to capitalize on the increased traffic driven by OTAs.
