How to Keep an Eye on Hotel Travel Performance

The hotel and travel industries face challenges posed by the competitive environment. This is why managers strive to come up with solutions that will allow them to cope with the daunting business world. Aside from the ever-changing environment, there is also a need to keep track of the competitions because they can easily attract your customers. This will of course result to a huge decrease on your profits. Since hotels are part of the hospitality industry, you should always think about your customers and their satisfaction. Meeting their requirements should not be your main goal – instead, you should go beyond them. To do this is simple: you need to monitor hotel travel performance.

The methodology in measuring hotel travel performance has evolved over the past few years but the fact remains that you should first take a look at your goals. Determining what you would like your organization to be in the future will lead you to learning the right tourism indicators that you should use. Therefore, even if you have the best piece of hotel performance software, this would not matter unless you know what you would like to accomplish. The goals and objectives of your business are exactly the things that will tell you what your company will be. Discovering what your organization’s future is will help you in selecting tourism indicators that will measure hotel travel performance.

Your customers should be your main priority but this does not stop there. There are performance dimensions that you will have to consider to be able to assess hotel travel performance well. As mentioned, the business environment here is very competitive which is why you have to keep an eye on the competitiveness of your own business. Measure the viability of your company against the performance of the other firms. You will need tourism indicators like relative market position and share, customer base measures and sales growth.

Now, we all know that in this industry every cent counts. The money that you expend might be of great help or might just prove to be a bad decision on your side. This is why financial measures should be utilized which include profitability, liquidity, market ratios and capital structure. Quality of service is next. You cannot gain more customers if you do not advance on reliability, responsiveness, appearance or aesthetics, tidiness, comfort, staff and environmental friendliness, effective communication, competence, access, security, availability and courtesy. These measures will make up the service quality dimension.

Hotel flexibility perspective uses measures such as volume, specification and delivery speed flexibility. When you monitor the hotel travel performance, you should also keep track of how the resources are being employed. Efficiency and productivity are two measures that are commonly used in this aspect. Finally, innovation should also be gauged. The growth and the development of your organization is viewed as one of the most important perspectives due to the fact that you can determine the performance of the innovation procedures as well as the performance of each innovators which carry out the processes. Your staff can either be your biggest expense or the most valuable asset which is why you should always observe their performance.

Direct Marketing Essentials – Simple Ways to Calculate and Measure Your Marketing

The mathematics of direct marketing primarily rests on three key elements:

  • Sales
  • Marketing Costs
  • Contribution Costs (e.g. Overheads)

Now there is no clear-cut balance for these elements as any direct marketing activity needs to be tailored and fine tuned according to each business. This is why I will never state off-the-cuff a direct marketing response rate for any business or industry type as there are significant variables involved such as the product itself, the demand for it, market preference and the nature of the offer.

Another point to highlight is that the mathematics used is underpinned by the belief that the future will be similar to the past. Hence if any variable within the equation changes significantly (e.g. magazine circulation significantly declines), then you have to expect a different response rate.

So to dive straight into it, I’ve listed below a few essential calculations which every small business should use:

Calculating the Allowable Using Your DM Budget

This equation lets you calculate the amount of money you need in order to make one sale. This is really important to know!

Revenue Selling Price: $1000

Minus Costs Production: $500

Overheads: $150

Postage & Handling: $50

The Breakeven allowance is $300 (the money you are allowed to spend to acquire a customer).

NOTE: If your business requires 10% profit, then your allowable would effectively be reduced to $200.

Using the Allowable to calculate your DM budget

So using our allowable recruitment spend per customer x target No. of Sales = $200 x 100

Marketing Budget = $20,000

What happens if you don’t make the sales required?

It is essential to test the market first using a small quantity before rolling out the entire campaign. Typically your allowable is based on what resources are required to acquire a customer already, plus I would expect some form of marketing research carried out in order to understand the size of your potential market. It is also important to include contingencies within your marketing activities if you don’t make the required sales. I always save 10% of my budget if something goes wrong. Or better still, if a potential list I’m targeting returns a huge ROI, then I have a bit left over to chase the money and market these top prospects again.

Measuring Costs, Responses and Sales

Here are a few very simple, yet essential equations to help measure costs, response and sales:

Cost per Unit:

Total cost / Total Quantity = Unit Cost

e.g. $20,000 / 4,000 = $5

Response Rate:

(Total Responses / Total Mailed) x 100% = % Response

e.g. (200 / 1,000) x 100% = 20%

This equation is exactly the same as measuring the Conversion Rate which would be Converted Leads / Total Leads Contacted

Cost per Sale:

Total Cost / Total Sales = Cost per Sale

e.g. 20,000 / 500 = $40

Example: Let’s say you were a travel insurance broker wanting to advertise in the local newspaper to sell premium travel insurance for $500 per person. I’ve listed some assumed sales and marketing costs to acquire a customer:

Advertising Cost: $7,800

Newspaper Circulation: 150,000

Promotional Cost: $5 per lead (e.g. Call centre costs)

Revenue per sale: $500

Total Marketing Cost for 100 leads is therefore: $8,300

The Cost per Inquiry or Sale will vary depending on the response rate, which you won’t know until you advertise. But the main focus on advertising is to achieve a required level of profitability in order to justify the expense. I like to refer to it as measuring the Profit Index. (This is exactly the same as using your allowable to calculate the number of sales you require in order to justify any marketing spend).

Profit Index (%) = Total Marketing Cost / Total Revenue

Profit Index (%) = 8,300 / 10,500

In this instance the Travel Insurance company requires 20% profit from print advertising. If my profit Index falls below 20%, then the advertising is deemed unprofitable. I’m so harsh!

Hence, 21 travel insurance premiums need to be sold to meet a profit index of 21%.

In other words, the allowable DM Budget would be set at $8,300 for advertising in the Local Newspaper.

Using Spreadsheets to Negotiate Spend

If you’ve seen the spreadsheet then you’ll wonder why I’ve highlighted the following cost fields – Ad Cost and Promotional Costs. Promotional Costs are harder to change in the short term, but negotiating advertising costs can be extremely effective. You’d be amazed to discover that by saving 10% of advertising you drive down your Profit Index, which means your advertising dollar doesn’t have to work as hard to acquire customers or sales. In the example used, you would only have to sell 19 Travel Premiums in order to meet the minimum profitability requirements. It also does hurt asking for a trial advertising rate to test the viability of a product in a publication. Some account managers will assist if it means you become a regular advertiser.

There are a couple of examples which the above calculations can be applied to in order to gain some further perspective for your next lead generation campaign.

Lead Generation Conversion Programs

1. Generally the more time you have to qualify an enquiry, the more it costs to generate. For example, if your telesales representative took 15 minutes to convert a prospect, while others may take only 5 minutes, then this will drive your overall costs to acquire a customer, and must be factored into your overheads or marketing costs.

2. Lead generation lists (Prospect Lists) can also support repeat conversion contacts, but you’ll always get a reduced response rate with each effort. For example, if you mailed 1,000 prospects, it may generate 250 leads. The second time you mail the list (minus the 250 leads you generated the first time round), you might get another 100 leads. This means you have generated a total of 350 leads from the prospect list. But we wary that if you use the list too many times then it will get to the point of being unprofitable.

As a general rule of thumb, you should change a portion of the DM piece the next time you mail (e.g. The offer, or a larger discount), as customers may respond to varying aspects of your direct marketing campaign, which is why it is always important to test.

You may hear direct marketing consultants talking about list building, and how much of their time is dedicated to developing a database of qualified prospects and customers. These lists are in fact a key ingredient which differentiate direct marketing from traditional marketing.

But I will say that typically, a list of present customers will respond much better or at a higher rate to a new product compared to non-qualified, or “cold” prospects.

It is also important to point out that while companies always depreciate their expenses over time such as equipment, machinery and inventory, they almost never capitalise what could be their most important asset, their customer. Therefore, small business owners should view their customers as investments and be able to measure and monitor customer data, and capitalise on it for the future.

Just remember that the maths of direct marketing sets it apart from all other marketing disciplines!

The Use of TASER Device in a Legal Way While Traveling

One of the interesting events to do when you want to enjoy life is to travel every place across the globe. You can experience an excitement that is an endless one and find perfect destinations that you can visit along your holidays. Each beautiful spots offers allure and charm to tourist as well as mesmerizing the great attractions. The place of your choice will totally overwhelm you.

There are a lot of things that you need to consider when traveling and one of the most important that you should always put in mind is your safety. Every individual wants to have a comfortable journey so either way you travel by land, air, and water you must be absolutely prepared. The precaution list is constant and if you already taken the significant safety and health preventive measures, then just take it easy and relax.

Today, technologies are being used for different aspects in our lives. Today, many took advantage on the use of safety tool such as TASER device. While you are traveling by water or air, you cannot carry this device in your pocket or hand but instead you need to have a proper placement together with your luggage.

It is necessary to have a good place to where you want to have it so that you can easily get it. In times of situations wherein in spending areas that are high traffic many thieves creep in and with that you must be prepared and easily locate your tool to protect yourself out of danger.

Vacation travels believed to be amazingly fun and relaxing. Unexpected events, like personal injury or theft can make your much-awaited travel a bad adventure. So, how can you save yourself from harm? Safety measures is indeed your priority, always bring with you a TASER device one of the safety device that you can lean on especially if you are traveling by land. Also have an invaluable gadget like cell phones for this is can be way to keep in touch and will be free from worries while having fun.

It is not illegal to have a device tool for safety in you daily events or by traveling, but that will also depend upon the situation or case that you are to plan. There are places that you need to have a license first before you can bring with you the device and other areas that you are free carry it. If you are to travel by water and air place the safety device on a convenient place for easy use in times of emergency and make sure to check out the policies of the airport or the sea port. On the other hand you can place it in your pocket if you travel by land.

Planning ahead of time for travel is a great way to keep you away from detriment and that can protect yourself from unexpected events. Be alert always and have your safety measures all the time. Keep safe and have fun with your travel.