Hotels Top 5 Winning Strategies for 2010 Soccer World Cup
IDeaS Top 5 Winning Strategies for 2010 South Africa FIFA World Cup
The implementation of these recommended strategies combined with careful and detailed observation of the levels of demand will allow South African hoteliers to achieve the correct balance between price and demand and be best prepared for the upcoming 2010 FIFA World Cup.
· Minimum length of stay – Over the course of the FIFA World Cup, hoteliers throughout South Africa are recommended to enforce length of stay restrictions during match days. Such restrictions would need to be at least 3 days, in order to encourage longer booking periods and ensure that higher occupancy periods pre and post match days are covered.
· Ensure an equal mix of groups and transients – There are no clear indications that either a transient, or a group-focused, strategy is more successful. Data observed has shown that group contribution should be kept between 45%-55%, to make sure hoteliers can count on a solid base of guaranteed bookings whilst being able to pick up a good number of transient bookings.
· Overbooking – Appropriate overbooking levels should be set to counteract the expected rise in cancellations. Depending on individual business mix and number of guaranteed bookings, IDeaS recommend an overbooking of at least 5%, to be gradually reduced as the transient pace increase and groups are being washed to more precise numbers.
· Optimal pricing strategies – The pricing strategies in the lead up prior to the FIFA World Cup will have to be carefully managed by individual hotels. While an expected increase in demand during the event will allow rates to be driven accordingly, this will not be the case in the days before or after. IDeaS recommend a careful and direct marketing strategy is put into place to entice visitors to arrive earlier or stay longer, putting together extended length of stay packages, which could include food and beverage and reduced rates on non-match days.
· Clear cancellation policies – To minimise the impact of costly last-minute cancellations, IDeaS recommend booking fences for selected market segments. By clearly stating the terms and conditions of pre-payment and cancellations, hotels will be able to dramatically minimise any potential negative impact on revenue.
The FIFA World Cup is to be held from June 11 – July 14th 2009, with various estimates predicting an influx of 3 million additional visitors to the country and pumping an estimated $21.3 billion into the South African economy. For more details on IDeaS strategic recommendations for South African hotels please view the OnDemand Webinar for South African hotels here http://go.ideas.com/WN16 or view the complete FIFA World Cup 2010 Report here http://go.ideas.com/WP5.
Date Created: 2009-06-25 | Last Update : 2009-06-25 |
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