S.A Hotels Revenue Optimization for 2010 Soccer World Cup
South African Hotels Have New Weapon for Revenue Optimization during FIFA World Cup
IDeaS, the leading provider of hospitality focused revenue management and optimization solutions throughout EMEA, have released their list of ‘winning revenue management strategies’ for the upcoming FIFA World Cup 2010 in South Africa.
The World Cup is the most followed sporting events in the world, surpassing even the Olympic Games in size and scale, and hoteliers are trying to determine how to best take advantage of the expected increase in both demand and occupancy through the use of optimal revenue management and pricing strategies.
With the 2010 FIFA World Cup being the first of its kind to be held in Africa, no historical data is currently available for the industry to base their expectations on. “With no background data available for hotels in South Africa, many hoteliers are raising a variety of questions. Such as what optimal rates should they be charging, what minimum length of stay requirements they should set and if there will be any significant impact on other streams of revenue” explained Paul Van Meerendonk, Senior Consultant, IDeaS Advantage EMEA.
“To provide a sense of clarity and control for hotels in South Africa, we undertook a detailed study of the last two football events in Europe in an effort to provide the industry with a sense of what to expect and how to best prepare” added Paul Van Meerendonk.
IDeaS analysed the 2006 FIFA World Cup in Germany and the 2008 UEFA Championship in Austria and Switzerland in a number of hosting cities. The research undertaken by IDeaS focused clearly on levels of occupancy, the optimal rates charged and the other streams of revenue which were affected by the various football matches. The data was then formulated in a manner which was able to provide a clear picture of the effects different matches had on individual cities.
By comparing the performance of hotels over the one-month football event with the surrounding sixteen weeks, IDeaS was able to provide a comprehensive view of the effect of each World Cup match on occupancy, pricing and other streams of revenue such as food and beverage.
Through its detailed analysis of the previous football events, IDeaS have recommended South African hoteliers undertake a range of revenue management strategies to both take advantage and cope with the expected increase in demand.
Strategies such as the use of carefully planned pre-paying options to help reduce the impact of costly last-minute cancellations, as well as the implementation of minimum length of stay requirements during the period, are just some of the different revenue management strategies IDeaS has recommended hotels apply prior to the 2010 FIFA World Cup.
As was expected, previous football events had a positive effect on the host cities, highlighting the need for South African Hoteliers to prepare their revenue management strategies for an above average period of occupancy and higher food and beverage sales.
The FIFA World Cup is to be held from June 11 – July 14th 2010, 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