Revenue Management Solutions exist to provide consistency, accuracy and enhanced pricing techniques and automate the complexities associated with pricing perishable inventory. Much innovation has occurred in recent years. Now, this technology influences the pricing or hotels, restaurants and golf courses. Capsolve has released a brief introduction to the global RMS marketplace to give buyers and sellers of these solutions a better understanding of market constituents. This report provides:
A summary of the overall RMS marketplace, and
Its place within the Marketing Technology Ecosystem
The Core Capabilities provided by many solutions
The Styles and Strategies employed by Solution Providers within the market
Key marketing considerations for this software
A glimpse into Current Trends influencing the RMS category
Key demographic and local trends affecting hotels, vacation rentals, restaurants and golf courses in the Suncoast and SRQ marketplace
Florida continues to experience growth across both the general population and the inflow of travelers. Enterprise Florida reported a growth in the state population of around 2.0% in recent years. VisitFlorida reports that travelers into Florida from all global destinations increased 2.5% for 1Q17 compared to the same period the previous year, reaching 31.1 million visitors.
Manatee, Sarasota, and Charlotte counties are no exception to this. ESRI’s analysis showed these counties experiencing a total population growth rate of 7.3%, 6.0%, and 5.0%, respectively, from 2010 to 2016. Further to this point, Metrostudy reports that Sarasota County experienced 23.4% growth in housing starts when comparing 1Q17 to 4Q16. Manatee county experienced a decrease of 0.2% in the same metric.
Other cities within this area also reported meaningful population growth. The Herald-Tribune recently reported that the city of Sarasota experienced 2.5% growth from 2015 to 2016 based upon Census Bureau data, while Bradenton was at 2.3% and North Port at 3.3%. Each of these areas has a different demographic makeup and understanding the local hospitality industry supply, population and demographic data at the county level shows metrics that should be of interest when planning for future marketing activities.
However, most of us understand that these numbers are changing and sometimes rapidly. Hotel room inventory in the city of Sarasota will be changing significantly during the next 12 to 18 months. It may also be worth mentioning that while these numbers are close and directional, they are not perfect due to how business types are categorized within the data.
Reviewing the population of the area allows us to compare it to inventory levels for each hospitality segment.
While the above table has a reasonable amount of consistency across each county, the data at the city level is much more disparate with significant variations in the ratios from city to city. These calculations lead owners to ask if they are getting a fair share of the population and its extended sphere of influence to visit a specific location. Completing this analysis properly, requires the addition of inbound fly and drive travel activity to be included. Combining these data sources creates a baseline of volume that should be achievable for a given location and promotes a better understanding of the ebbs and flows from which marketing programs may influence revenues.
Wondering how to create a marketing technology platform as unique as your business? Start by sharing some basic information with Capsolve about what you want to achieve or simply explore a new area that you feel may be a possibility.
When you really consider the meaning of proximity and marketing as a combination, a traditional marketer must begin laughing profusely. It was only the advent of the phone and then the web that made us have anything other than close proximity marketing as our primary marketing approach. As electronic commerce options advanced, the digital divide was created and enabled us to talk to each other without ever talking to each other. As a marketer, you must ask yourself what is best for your brand. What messages should travel from the mouth to the ear and what messages should be delivered via one or more technologies?
Today, proximity marketing may still involve a person talking to a person. AT&T’s commercials are a case study in what I call “person to person proximity marketing” (said with tongue in cheek). However, most people talking about proximity marketing are relying either in their minds or literally upon multiple technologies to make it happen. Various combinations of mobile phones, operating systems, data, communication signals and IoT devices create a partially invisible network of digital plasma carrying information about the nearby devices and presumably their owners.
The practical applications of these conceptual and real solutions are many. They are able to be more informed if the information exists and access to it is permitted. They are able to match a given marketing promotion to a prospective customer as the person enters a proximity-based sphere of influence. These promotional offers may be for a core product, an upsell opportunity, a coupon, part of a loyalty program, an event action or may simply improve a customer experience. They could even be combined with the human element and shared with a prospect if an employee deems it appropriate. However this technique may positively influence your marketing results, I look forward to discussing it with you in the near future.