Strengthening Your Value Proposition

TravelCLICK, October 07

Can you describe in one sentence the value proposition for each of your rooms? Test yourself, would you make a buying decision on that description?This is what consumers face on a regular basis as they are shopping. And a clearly defined value proposition can lead to more revenue for you.

Customers booking online need to readily understand the difference between room types. The difference should be clear and simple. This requires hotels to know and communicate the value proposition of each room-and be able to describe it concisely with selling points that make a clear connection with prospective guests. In strengthening your value proposition, here are two guidelines to consider:

1. Ensure your room price differentials reflect increased value. Make sure your value proposition for the room product you’re selling is clear-a value you can simply state in a line or two of text that clearly defines room features. Walk your rooms and put yourself in the mind of your customers. What is the true difference between one room and the next, and are your prices logical, and incrementally reflecting this difference? For example, does the higher-priced deluxe room have substantially more square footage? A spectacular view of the ocean? Extra amenities? Give your customer a reason to want to buy the higher-priced room. If you can’t describe the difference in a sentence or two, you can’t expect a guest to pay more. Where you can display an image of the room, make sure the photo or floor plan illustration underscores the value you describe.

2. As you define the value of each room, keep this rule in mind “Less is More.” So limit the number of room types you offer. If you have more than a half dozen or so room products, it’s confusing for the customer and interferes with their ability to understand the value they’re getting in paying more. Also, too many room types and prices can be unmanageable for you. Define room type simply based on the key differentiators such as room size and view. Keep in mind that customers buy primarily based on these selling features. Factors such as smoking or bed type are not part of the value decision in the buying process.

In sum, understand what your customers are looking for and what features they will want to know about in your room descriptions and visuals. Taking the time upfront to delineate your products clearly will better position you to showcase value–and set up all room types to sell better online.

As you work through your planning for 2008, look to your room product as an opportunity to drive additional revenue. Â

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