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Hotel Chat

Welcome to the Navarino Hotel Blog

Monday, March 27, 2017

The Achilles heel of distribution

Distribution has always dominated its relationship with the producer. Macy’s, Marks & Spencer and Amazon are what Tourico, GTA and, lately, Expedia are in the hotel industry. Meanwhile, the product’s owner, in our case the hotel, sees its profits increasingly reduced without knowing what to do about it.

The keys to the distributor’s success are not easy to replicate yet still simple:

Volume or scaling to dilute fixed costs as well as gaining negotiating power to reduce unit costs.
Large technological investment.
Presence in the best showcases (visibility), something unreachable for producers.
Constant pressure on its producers to increase their distribution margins and guarantee the inventory.
Maximising income (retail price revenue management, playing with their own profits), for which being able to set the final sales price is key.
Strong control that the product will not sell on another channel at a lower rate (parity check) and react in the event that it does happen. Read More »

Thursday, March 23, 2017

Why Independent Hotels Are Thriving

The data has spoken. In 2016, sweeping uptakes in occupancy, average daily rate (ADR), and revenue per available room (RevPAR) revealed that independent hotel properties outperformed their branded brethren. Now, we find ourselves at the point in the lodging cycle where the non-branded universe is showing stronger growth rates than the chains. This is excellent news for investors and owners of non-branded hotels. Read More »

Tuesday, February 28, 2017

Why GDS will remain a crucial booking channel for hoteliers in 2017 and beyond

According to Phocuswright’s latest U.S. Online Travel Overview, despite the growth of online booking, offline sales will continue to dominate the marketplace in 2017. GDS bookings increased by 11.6 percent year over year from 2015 to 2016 in a sample of over 6,000 hotels worldwide. -

See more at: http://hotelmarketing.com/index.php/content/article/why_gds_will_remain_a_crucial_booking_channel_for_hoteliers_in_2017_and_bey#sthash.nhJHFAQh.dpuf Read More »

Wednesday, January 18, 2017

2017: Grow Your Hotel’s Direct Bookings, 10 Things You Must Do

There’s been a huge amount of talk in the industry recently about direct bookings, in an attempt to loosen the hold that OTAs have on the industry. A term we hear a lot is that they are a “necessary evil” for us all. It would be a wonderful world if we could turn off OTAs for all hotels, but then you would miss out on huge amounts of exposure from these sites, as guests use them to research their trips. Read More »

Tuesday, February 23, 2016

Why are hotels sleepwalking into increased OTA dependency?

For over 15 years that I have been within this industry, Independent hotels here in Europe have been always dependent on agencies, initially offline which then became online. From the days of GTA (Gulliver Travel Associates) who were all dominant in the early days to now where booking.com has to some extent replaced GTA as the agent where hotels have allowed them to take over their inventory.

We are though entering a new phase, where it has been clear for some time that Booking.com & Expedia have been implementing two very different strategies to maintain growth and market share. Expedia has been expanding by acquisition with its latest buys of Orbitz, Travelocity, and Home & Away while Booking.com has been diversifying with its purchases of Buuteeq, due in part to the competition on the horizon from Google & Airbnb. The recently announced deal that saw booking.com providing global inventory to Tripadvisor Instant Booking effectively makes them now an OTA. Read More »