How big data platforms can help your resorts in strategic management and planning as part of post- Covid 19 recovery and preparedness for the future
The current pandemic has resulted in major restrictions in the mobility of people both internationally and domestically with grim consequences for the tourism sector. WHO has indicated that although the coronavirus pandemic has been severe, it is not necessarily ‘the big one’ and that the next one may be worse (Source: https://www.theguardian.com/world/video/2020/dec/29/who-warns-covid-19-pandemic-is-not-necessarily-the-big-one-video, The Guardian, 31 Dec 2020).
Armed with this information, an immediate and thorough rethink in the management and strategic planning of resorts is imperative to ensure better positioning with would be tourists as the sector slowly recovers as well as solid financial base to weather any future storms in what is likely to be an even more competitive environment going forward - a loss of between 850 and 1.1 billion international tourists is estimated in 2020 (Source: UNWTO) with a very moderate recovery forecast for tourism flows in the coming years.
Faced with this new paradigm, Maestros Hoteleros® firmly believe in the use of tourist intelligence platforms that provide vital intelligence and analysis to management teams so that optimal decisions can be made in the short, medium and long term to improve business results. From our experience, we have found them to be critical in successfully deploying a pipeline of strategies to attract and retain clients as well as manage operations and resources more effectively.
Taking our most recent experience in Sharm El Sheikh, the use of such a tool allowed us to:
- Develop effective campaigns in metasearch engines resulting in an increase in direct sales and reduction of intermediation costs; with targeted approaches developed further through segmentation of demand by market of origin;
- Produce highly competitive pricing strategies due to greater precision in predicting demand behaviours;
- Improve management systems as a result of adopting the above strategies with the optimisation of expenses, improved financing planning and, overall increase in income from offering complementary services to clients at the right time.
Handy add-ons include latest perception surveys of the destination from a range of vantage points including safety and, lastly, but certainly not least is the invaluable data on competitors pricing strategies, both locally and globally. Together with the flight searches with translation into actuals throughout the year, it provides a treasure chest of information that can only serve you well in your decision-making processes (See Figures 1, 2 and 3).
Big data is no longer the future, it is now and its use has been further accelerated by the pandemic, therefore, necessitating immediate investment in this area for the viability of operations and to enable resorts to stand their ground against competitors. The right partner can help identify and maximise the tool and intelligence to reap the maximum benefits and ensure your next move is the correct one for continued success.
Figure 1: Sharm El Sheikh: Evolution of the demand in search of flights. Period studied: 03.01.2020 to 09.15.2020. Source: Mabrian * Note: flight searches 11 months in advance
Figure 2. Sharm El Sheikh: flight connectivity - number of arrivals. Period studied: 01.09.2020 to 31.10.2020. Source: Mabrian * Note: flight searches 11 months in advance.
Figure 3: Sharm El Sheikh: competitive hotel prices. Period studied: 08/15/2020 to 09/15/2020. Source: Mabrian. * Note: prices analyzed one month in advance of the arrival date and based on the average price for one night in a standard double room.