Sep
21
The recent publication of the Hotels.com survey of hotel prices caused a bit of a furore in our local newspapers: Journalists delighted in pointing out that hotel prices appeared to be descending through the floor; hotel managers felt compelled to demonstrate that their chosen business strategy was the right one.
It was in the newspapers last week, it'll be wrapping up fish suppers this week.
Of course, this is more of a publicity exercise for Hotels.com than it has to do with accurately reporting hotel prices.
It was in the newspapers last week, it'll be wrapping up fish suppers this week.
Of course, this is more of a publicity exercise for Hotels.com than it has to do with accurately reporting hotel prices.
You see, Hotels.com can only report on the rooms that were sold over their systems. They can't claim to know anything about rooms sold through other routes to market. There might be all sorts of reasons why "room rates are down by 17%", not the least of which could be that Hotels.com proved to be a particularly price-sensitive marketing channel.
Without comparing data against room prices and volumes sold through other channels, the data in the Hotels.com report can support no specific conclusions.
"We sold rooms for less!" is no doubt what they want the buying public to glean from this publicity. As hoteliers, I don't think you should be paying too much attention to what they've got to say. Unless of course, they have access to data that actually means something to your business. Then I'd be first in the queue to read it.
The lesson from this?
Develop your own methods of measuring your own progress towards the results you want to achieve. You can choose whatever means you want. You can include the Hotels.com data if you like. It's free after all. But what matters is that you know what and how you're measuring. Don't get diverted by sideshows like this.
Without comparing data against room prices and volumes sold through other channels, the data in the Hotels.com report can support no specific conclusions.
"We sold rooms for less!" is no doubt what they want the buying public to glean from this publicity. As hoteliers, I don't think you should be paying too much attention to what they've got to say. Unless of course, they have access to data that actually means something to your business. Then I'd be first in the queue to read it.
The lesson from this?
Develop your own methods of measuring your own progress towards the results you want to achieve. You can choose whatever means you want. You can include the Hotels.com data if you like. It's free after all. But what matters is that you know what and how you're measuring. Don't get diverted by sideshows like this.
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