Revitup.Direct Blog

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THE INTERNATIONAL ENVIRONMENT FOR THE HOTEL PRODUCT IN 2024

Just three years after the COVID-19 pandemic, which literally transformed the tourism industry, international destinations are competing with each other both for mass tourism and for the individual and high-end traveller. In this dynamic context, Greek destinations must deal with changes with flexibility and adapt to new market demands. The high demand for Greek destinations is driven by Athens, with rapid development of its hotel product.

The lingering question is what can improve an individual average family hotel business. Moreover, the trip becomes more expensive, the visitor will be more diversified in terms of quality, which means that the hotel service would benefit from having similar characteristics throughout its life cycle.

Seasonality in popular destinations is waning, demand is rising and of course no one can guarantee how long this will last. What is certain is that this dynamic nature of the tourism market "requires" the formulation of a holistic strategy for recording, monitoring and drawing conclusions from "Big Data".

This data, apart from the fact that along with the increasing digitization of services, the processing requirements will also increase, should be monitored daily by the Sales and Marketing Department of the organization concerned. Every hotel business should "learn" to manage these in such a way as to adapt dynamically and simultaneously to demand at all stages of direct (as well as other) sales: in availability, in dynamic pricing and finally in the most profitable booking-sale of the room-product.

THE CHALLENGES OF IMAGES IN THE AGE OF ARTIFICIAL INTELLIGENCE

Recently, a popular topic for the international business community is artificial intelligence and its effects on all market sectors. This is because many tasks currently performed by humans will at some point be performed by automated processes (intelligent systems), in whatever form robots will take in the future. In the tourism industry, where artificial intelligence is currently most widely used is in the digital image and promotion of businesses and destinations.

There is now the option of automatic video creation, using only primary content, making the management of the communication and promotion mix clearly much easier on the one hand and more complex on the other, while the authenticity of the same product will gradually become a harder to find resource for diversification. The consequence of the above changes will be that some destinations will only exist digitally and then the issue for industry stakeholders (states, businesses, educational institutions and so on) will be the digital management of the actual destinations, especially for a country like Greece, where its unique environmental landscapes and rich cultural heritage are global benchmarks.

The combination of Digital Strategy and Advertising Efficiency for the Revenue of hotel businesses

The Marketing and Sales department of each hotel is under pressure to effectively promote the hotel business, using digital tools, coordinating with demand data, and adapting to an effective strategy by the end of the annual period, which ensures the sustainable profitability of the business. When the destination is in high demand, the business risk is certainly lower, but when the destination is not popular and internationally recognizable, the challenges require a different approach.

In the special location of Plakias in Crete, Alianthos Garden Hotel has demonstrated the ability to evolve and respond to the ever-changing demands of the market, which we consider it our duty to highlight as a Best Practice of our people.

In the context of our three-year cooperation with Alianthos Garden, the aim was to develop an integrated long-term Marketing and Sales Strategy on the one hand, and to take actions that will enhance the hotel's visibility and maintain the already positive image of the hotel on the other hand. The immediate goal is to increase bookings-sales at the hotel and the ultimate goal is the general upgrading of the business at all levels.

In this context, we will present the Holistic Strategy in terms of Sales, Marketing and Performance, the actions implemented, but also the results achieved, realistically strengthening the presence of the hotel in the market.  The vision of attracting new visitors and maintaining a favourable image for guests who have visited the property or the area in the past has become a reality through persistent teamwork, commitment to goals and trust in the data.

A few words about Alianthos Garden Hotel

Alianthos Garden Hotel is a three-star hotel located in Plakias, Crete. The exact kilometer distance from Heraklion airport is 115 kilometers, while from Chania airport it is 97 kilometers. It has a capacity of 95 rooms and 8 types of suites, with the majority of these being double or triple rooms with a few suites and Studios (Garden View, Side Sea View and Sea View), while it mainly sells Half Board, with the possibility of a Bed& Breakfast. The hotel is seasonal and remains open from April to October, following the tourist season of Crete. The hotel's main markets are the German-speaking markets.

THE CHALLENGES OF THE CURRENT SITUATION IN LAUNCHING COOPERATION

The challenge of an unpopular destination and the dynamic sale of rooms Online

• The hotel is located in a tourist destination that does not have a sufficiently strong brand, which affects the exposure of the accommodation in the online environment, thereby increasing the difficulty of creating a continuous flow of bookings.
• High reliance on the German speaking market - mainly German Tour Operators - with economy double room available ONLY for contracts.
• The prices, both by room type and by period, are higher than the price of the average room price for the destination.
• Price difference issues with wholesale channels that affect both the profitability per room type and its daily selling price.
• Sales were mainly based on the cheapest room type, in which overbooking/overselling tactics are followed leading to a decrease in revenue.

What does one conclude from the aforementioned challenges?

The challenges made Revitup's Holistic Sales & Marketing Strategy even more imperative. In short, apart from the main need to develop the Annual Strategic Plan, this time our team had to face another challenge, the existence of a hotel in a destination that is not widely known.

A destination unknown to the general public is a variable with an imbalance of supply, which implies extraordinary (and unknown in terms of cost) needs in advertising budget, which is a very important disincentive for an integrated advertising campaign aimed at increasing Revenue and net profit of the business.

HOW DID WE MANAGE TO DEAL WITH THIS PROBLEM IN THREE YEARS?

THE THREE-YEAR STRATEGIC MARKETING PLAN & PROMOTION

Alianthos Garden's Marketing Strategy was based on an integrated approach that focused on highlighting the unique characteristics of the hotel and creating even closer relationships with existing audiences and creating new ones.

Detailing the competitive landscape and guest needs, we identified key market trends and identified critical opportunities for the expansion of the hotel's operations. We focused on the obvious: local traditions, culture and the natural beauty of Plakias were the main source of inspiration for the development of original content and the creation of unique experiences for visitors.

In order to improve the hotel's image, a strategy was implemented that combined Digital Marketing services, Website Creation and Management, Social Media, Email Marketing and Online Presence Management in Metasearch channels, in order to strengthen our client's brand and increase bookings, creating an environment of trust between guests and the hotel.

In the Annual Sales Plan that was prepared, emphasis was placed on the creation of a single strategy that includes all Sales Segments. Then, specific strategies were implemented to enhance the use of the hotel's website as a standalone channel, in collaboration with the other sales channels, in order to achieve the goal of increasing net revenue based on the initial plan.

THE DIGITAL TOOLS
THE GRADUAL IMPROVEMENT OF THE DIGITAL IMAGE OF THE HOTEL

The selected target markets were initially derived from market research, analyzed and segmented. Afterwards, the Revitup proposal was created for the annual advertising budget to the hotel management. After combining the data and the plan, the final customer-guest was convinced by the hotel's online advertisement and finally chose to spend their holidays at Alianthos Hotel.

The conclusion was that our online targeting worked and converted the original public that we targeted into Lookers & Bookers. Let's take a look at some elements from the design and implementation of the plan.

Online marketing allows businesses that apply it consistently to do just that: to connect with their customers in a more efficient and personalized way. There are many tools that can be used to create a strong digital presence for a hotel which we list below:

Brand Identity / Website

The creation of the new website was a key step in strengthening Alianthos Garden's presence on the internet and increasing its visibility. It offered a modern and easy-to-read design, reflecting the quality and character of the hotel. It highlighted the hotel’s unique features and offered easy access to information on amenities, local activities and special offers.

By improving the online experience of guests and simplifying the booking process, the new website helped increase website traffic and increase bookings, thus enhancing the hotel's success. The effect of the new website was catalytic, both for the company's image and for the increase in direct income.

Social Media

Social media has been a powerful tool to increase awareness and connect with the public for Alianthos Garden Hotel. Through the constant posting of content such as photos and videos of the hotel facilities and local experiences, a vibrant and interactive community has been created.

Interacting with followers through comments, messages and sharing opinions strengthened the relationship of trust between the hotel and the clients. In addition, an active presence in various social networks helped to increase the visibility of the hotel, attracting new guests and also contributing to the creation of a large community.

Email Marketing

Email marketing proved to be a very effective tool for communicating with existing and potential clients of Alianthos Garden Hotel. Through carefully designed newsletters, we provided information on special offers, events and holiday packages, which mobilized the interest of recipients. With carefully crafted messages, we were able to promote the unique features of the hotel and its excellent services.

Continuous monitoring and analysis of results allowed us to strategically adjust our campaigns, improving open rate and recipient response. By strengthening email communication, we succeeded in increasing bookings and improving the overall success of the hotel.

Metasearch Channels

The correct positioning and presence of the hotel in popular travel search engines such as TripAdvisor, Trivago, HolidayCheck (key channel in German-speaking markets) and Google MyBusiness, are key tools for the successful promotion of Alianthos Garden Hotel.

The hotel's presence on these channels allowed the business to be visible to millions of travelers searching for their ideal destination. Exposure on these channels allowed the hotel to attract new clients and increase its visibility.

Ratings and reviews received through these channels have helped increase customer confidence and their decision to book. With its strategy in metasearch channels, the hotel managed to capitalize on the market potential and its success on an international level.

PERFORMANCE
THE MANAGEMENT OF ONLINE ADVERTISING: META & GOOGLE ADS

Alianthos Garden was a real challenge for us in terms of managing online promotion, as there was an audience outside the mainstream and we weren't targeting it until 2021. The destination of Plakias did not attract mass tourism but rather alternative travellers who wanted to discover the most unspoilt natural treasures of Crete. We targeted this quality audience with the right promotional mix, and managed to make them Lookers on our site, highlighting the specific features of both the hotel and the destination.

Hotel & destination premiumization

The decision taken as a team, together with the management of the hotel, is to implement actions aimed at the premiumization of the hotel and Plakias as a whole. The promotion of quality was the result of many marketing actions, such as the creation of a new website and Sales.

On a purely promotional level, the hotel started to have consistent and continuous promotion in Meta & Google Ads targeting the destination's traditionally strong markets such as Germany, but also opening up new markets such as the UK and France.

Meta Ads

At the Meta Ads level, we proceeded with several actions aimed at highlighting the hotel & destination. With these actions we highlighted the beauty of the area and associated it with the hotel. For example, we targeted Hikers and Nature Lovers, showcasing Hiking experiences offered by the hotel to travelers, we showcased the beautiful beaches of the area by connecting them with excursions offered by the hotel, highlighted tasting days offered by the hotel and many more actions of a similar nature. A great help in all these actions was the extensive photographic material available at the hotel. With the foregoing we started to highlight the hotel and the destination and make it known to the right audience, the audience that is not mass tourism, but enjoys the nature and the beauty of each destination.

Google Ads

At the Google Ads level, similar targeting of countries was done and we started by targeting searches from users looking for accommodation in South Crete. Gradually, however, all the above actions came to fruition as from the 2022 season onwards, there started to be a number of searches specifically for Plakias that did not exist before. Obviously all of the above actions benefited the area and its businesses overall by highlighting it to a larger audience.

Measurable advertising results in three seasons (2021-2024)

• Indicative of the strengthening of the Alianthos Garden brand is the increase in searches for the name of the hotel (in the target markets) on the Google platform +59% (2022 vs 2021) and +56% (2023 vs 2022).
• 2 million users per year from the target markets saw an advertisement of Alianthos Garden on the META network (Facebook& Instagram) in 2023.
• In the years 2021-2023 in total, through Meta's advertising network, more than 100 thousand users visited the Alianthos Garden website.

After presenting the advertising actions, the next step is to present the strategic actions in Sales and Revenue.

THE APPROACH OF REVITUP
ANNUAL STRATEGIC SALES PLAN AND SALES MIX CHANGES

Options and Priorities
The scenarios for sales channels

Through the Revitup Annual Strategic Plan, we managed to highlight Alianthos Garden from the digital and kilometric distance of Plakias, placing it "next to" Rethymno and of course Crete, in terms of visibility and digital searches. Combining an online advertising strategy with balanced sales strategies was the main objective.

1. Anticipation of different scenarios based on the priorities and conditions of sale of the accommodation (budgeting).
2. Planning of strategic differentiation of the specific hotel product.
3. Planning to provide products with Added Value, based on enriching the guest's experience and promoting them through the hotel's sales channels.
4. Planning or creating specialized offers by room type and by period, to improve the balance in the Sales Mix.
5. Dynamic Pricing Approach based on Annual Sales Plan, - based on a Profitability scenario.
6. Planned approach to targeted sales during different periods based on market trends, and actions on agreements and program of activities.

The implementation of the strategic plan was a great success due to the trust shown by the Hotelier to the Revitup team. With faith in our strategy, the hotelier chose to stick to the plan & invest in targeted markets through advertising, strengthening the direct sales channel. Let's take a closer look at the sales and revenue strategy.

THE SUSTAINABLE AND REALISTIC SOLUTION: MIX OF CHANNELS, ADVERTISING AND SALES

Our partnership with Alianthos started in 2021

Revitup presented the Annual Plan forecasting sales for the coming years. Over the course of three years, we succeeded and effectively strengthened the direct Sales on the Website, as well as the other channels based on our Holistic Strategy. More specifically, as shown in the following tables, we managed to improve all the Key Performance Indicators, which determine the improvement of the Profitability of the hotel (see Table 1 & 2):

Table 1: Key Performance Indicators 2021-2023

Table 2: Main Accommodation Indicators 2021-2024

In particular, by implementing the Annual Sales & Revenue Strategy that was planned in advance, we aimed to improve the direct bookings for the hotel over a three-year period, following a difficult period, that of COVID-19. The result of this Strategy is the improvement of Direct Bookings compared to the rest of the online Sales channels (Table 3).

Table 3: Main Sales Channels 2021-2024 *COVID-19 period

Table 4: Percentages per year in Online Revenue & Nights for the hotel in relation to the total Revenues & Nights *COVID-19 period

Statistical Results from 2021 to 2023:

• We increased the hotel's total revenue in online channels by 95%
• We increased the total revenue of Direct Bookings of the website by 67%
• We increased the Average Daily Rate (ADR) in online channels by 26%
• We increased overnight stays in online channels by 42%
• Increase in overall profitability of the hotel by 56%
• Increase of online overnight stays from 10.87% in 2020 to 27.98% in 2023 of total overnight stays.
• Increase in online revenue from 13.32% in 2020 to 29.84% in 2023 of total revenue.

Summary of our results

• We premiumised Alianthos and convinced the potential visitor to "see" a hotel they were previously unfamiliar with.
• We tackled the Seasonality of the hotel first and then the destination. We did not appear in the searches of people looking for Rethymno, but for South Crete.
• So we managed to make the customer who was planning to visit Greece, Crete or Rethymnon, book their holidays at Alianthos Garden Hotel.
• At the same time, we helped the overall destination of Plakias to stand out
• In addition, we have created the basis for repeat visitors for the following years!

APPENDIX
INFOGRAPHICS

Below you will see in more detail how Revitup's strategic plan helped improve the hotel's online presence each year

In closing, we would like to thank both the hotel management, as well as our partners for this unique result. All these years as Revitup we try to stand by the hotelier, we share knowledge and data, aiming only at the profitability of his or her business, through our comprehensive proposal!

"Our cooperation with Revitup is for both of us, efficient, personable and beneficial. The strong points of our cooperation include the very good communication and the trust we have built up with the team, as well as their expertise in online sales and digital marketing. The results exceeded our expectations, so we would definitely recommend its services to other hoteliers."

Kostas Vardakis – Owner of Alianthos Garden Hotel

Epilogue

These impressive results would not have existed without the daily effort of our associates and our constant and direct communication with the hotel's management, whom we would like to thank for their trust and permission to publish the above data, in order to help educate the market and the Greek hotelier.

We are thrilled that our team is the most reliable digital partner for the Greek hotelier, in the age of information and data.

For us, the only thing that this Case Study proves is that with the right data analysis, planning and teamwork, effective Revenue Management is a realistic goal for any hotel business that looks to the future with optimism.

ANNUAL REVENUE PLANNING BY REVITUP

THE SUSTAINABLE SOLUTION COMES FROM DATA MANAGEMENT
REVELIER: THE SOPHISTICATED DATA COLLECTION AND PROCESSING SOFTWARE

Revelier is our internal data aggregation and management tool in order to monitor all important indicators (the so called KPIs) but also overall tourist demand, in all channels.

Using Revelier we collect and track data to:

• Recognize in advance the peculiarities of international markets and how they can affect sales
• Balance the Sales Mix (supply & demand)
• Move towards gradual economic independence from tour operators (TOs)
• Increase the steady flow of income for the business
• Drive direct bookings by controlling sales through OTA's
• Dynamically control purchases so that more efficient management is carried out of advertising investment
• Support the hotelier to invest strategically in direct sales and build their online presence
• Unleash the potential of the hotel's website, establishing it as a profitable tool.

The role of the human factor was and will always be decisive. Our people cooperate with the hotelier based on the Annual Revitup Plan, combining technology with human contact and communication.

CREATING LOOKERS AND CONVERTING THEM INTO BOOKERS
THE GOAL FOR SUSTAINABLE AD SPEND

The figures above clearly reflect both the strategy and the results. The question that concerns the hotelier is advertising expenditure and its efficiency.

The extra challenge we faced, managing an unpopular destination in terms of advertising, taught us that with proper coordination of channels, the Premiumization that was set as a goal can be achievable, even for a family business.

Focusing on Lookers with the aim of turning them into Bookers is for us the culmination of a three-year overall strategy that renews the hotel's life cycle and turns it into a long-term revenue generating engine.

THE REVITUP VALUE PROPOSITION
Our proposal includes a comprehensive annual package of services:

• Consulting for Offline Contracts and full management for Online Contracts.
• Emphasis on the role of Pricing, the most dynamic part of Sales and Service Marketing
• Team of partners for both Sales and Marketing-Advertising.
• Collection and processing of ALL Data related to the hotel product.
• Regular meetings and answers to ALL the partner's questions.
• Digitization of all services, with easy access, file exchange through technological tools.
• Long-term investment in the branding of the hotel.