SweetBeam says hotels must diversify to up RevPAR
Agency advises that better use of data is the route to 2020 success
Dubai-based individual marketing firm SweetBeam has warned that with a huge amount of hotel supply coming into the region in the run up to 2020, RevPAR is likely to suffer and hotels will have to seek alternative routes for driving revenue.
The company, which has doubled in size over the past three years, and is currently looking to expand into Asia, is seeking more partners to maximise and leverage the “non-room portion of business” by helping hotels use data more intelligently.
“The thing is hotels have all the information about their guests; they just haven’t been using it properly,” said Troy Simoni, CEO of SweetBeam during an interview with Hotelier Middle East.
“We take that information anonymously, so we don’t know who the guest is but we do know that, for example, in room 303 a Russian couple with no children has just checked in at full flat rate, and that they are staying for a week, etc.,” he added.
Simoni said that one of the most common practices that impedes the sale of services to guest is either communicating too much or too little, and so the solution SweetBeam brought to market was “to do neither”.|
“Rather than communicating the same thing to everybody, we look to communicate differently to every guest in the hotel. So we give them all the information that they want to know, or most likely want to know.
“So if you are a staying at a hotel as single or couple, we are not going to communicate to you about the kids club. It’s the ability to get rid of the clutter and focus only on the message that’s most relevant to them. What happens is that the awareness builds up and response rates go up.”
Dubai is already beginning to see the challenges of the Expo 2020 increase in inventory, with revenue down for the month of October.
Based on daily data from October, Dubai reported a 2.3% YoY decline in RevPAR to AED845.60 (US $230.20), which STR Global linked to supply marginally outpacing demand.
Established in France in 2008, SweetBeam moved its headquarters to Dubai in 2010 as a full service partner for hotels, providing a range of revenue-maximising opportunities via services that include targeted in-room marketing, guest behaviour intelligence and staff coaching.