Bringing Back Higher Profitability to Hotel Bookings – Containing the ‘Margin’ Erosion

Hotels are witnessing a gradual erosion in their revenues owing to expensive third-party bookings. So much so that hotel margins are forecasted to be impacted by a staggering ~4.5 percent by 2019. Against a backdrop where third parties are charging commissions in the range of 15-25 percent, hotels need to find ways to increase their profit margins. The focus needs to shift from getting customers to book on third-party channels to engaging with them more on direct channels. It is, therefore, imperative that hotels team up with the right partners to extend their direct reach through intelligent segmentation, and customized campaigns and promotions at optimized spend.

WNS’ Direct Channel Shift is an outcome-based solution that helps clients cost-effectively chart out and execute their direct channel shift strategy. Direct Channel Shift leverages WNS’ domain-focused intellectual property, deep market understanding, and technology and analytics prowess to boost revenues and margins.

Key features

Direct Channel Shift caters to both hotels that are seeking solutions for attracting third-party customers toward their channels, as well as those who are looking to optimize their direct channel initiatives. Defining the solution are features such as:

  • Advanced Analytical Approach
    Direct Channel Shift empowers hotels with:
    • Sophisticated propensity modeling and forecasting techniques
    • Descriptive statistical techniques to compute member profitability
    • Regression analysis and survival modeling techniques to predict Customer Lifetime Value (CLTV)
  • Customer Centricity
    Direct Channel Shift executes systematic analysis over disparate platforms and multiple sources of hotels’ booking data to:
    • Accurately identify customers’ future transaction behavior
    • Create a single source of customer information to understand a customer better and target him / her through the right channel, at the right time, and with the right offering
    • Effectively segment customers in line with future profitability and CLTV
    • Develop smarter and well-personalized campaigns
  • Modularity and Ease of Deployability
    Direct Channel Shift is a highly modular solution that drives key advantages in terms of:
    • Flexibility in implementation – Drives both client environment and Cloud-enabled hosting
    • Customization to precisely suit client requirements

Key business benefits

A comprehensive and state-of-the-art solution, WNS’ Direct Channel Shift provides the following value to hotels:

  • Outcome-based model, with zero implementation and operational cost from the client side
  • Improved profitability and ROI
  • Complete visibility into customer journey
  • Superior ability to monetize customer loyalty
  • Enhanced customer engagement
  • Reduced customer churn and increased customer loyalty
  • Improved campaign management
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