HOSPITALITY IN A DOWNTURN
Hotel Emergency Toolkit
Using industry partnerships to support local communities in crisis, develop team members and prepare your business for the recovery
www.thegrowthworks.com | hello@thegrowthworks.com
The Covid-19 travel industry downturn
The hospitality industry is facing an unprecedented crisis. The majority of hotels have been forced to pause regular business and furlough teams, but entrepreneurial hoteliers are looking at ways to support local communities, nurture staff development through the crisis and plan ahead. We’re here to help.
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COMMUNITY OUTREACH
How to offer your resources to aid the fight against Covid-19
E-LEARNING & DEVELOPMENT
BUILD FOR RECOVERY
This won’t last forever. Take steps to prepare for the rebound.
Upskill yourself and your team in key areas to prepare for the future
TABLE
OF CONTENTS
www.thegrowthworks.com hello@thegrowthworks.com
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2
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Community outreach
Offer your aid and resources to fight Covid-19
E-learning & development
Upskill yourself and your team in key areas to prepare for the future
Build for recovery
Think outside the box and embrace new non-room revenue streams
HOW TO APPROACH THE DOWNTURN WITH THE RIGHT PARTNERS
Here at The Growth Works, we have an intimate knowledge of the hotel industry. We are experienced hoteliers and work with a portfolio of successful partners who help hospitality brands to grow and manage their businesses.
As the coronavirus outbreak spread, we were amazed – but not surprised – at the steps partners take to support their hotel customers in a time of need.
We have compiled a list of actionable ideas and partners that hoteliers can work with to maximise their positive impact on local communities, provide diverse staff development opportunities and build for the recovery.
Community aid
Tens of thousands of hospitality peers are are joining community efforts to support the most vulnerable by delivering groceries, shopping and medicine. If your hotel has additional food and beverage stocks you would like to donate, we recommend contacting your local authorities to discuss how you can help. Volunteer groups such as COVID–19 Mutual Aid UK and ACORN can also assist your efforts to provide community aid.
If your kitchen is open, combining a volunteer effort with a revenue-generating partner like UberEats could cover costs.
Temporary team accommodation
With rental and mortgage payments at risk due to hotel closures and job losses, you could consider using your hotel as temporary homes for your team. We hope it doesn’t come to this, but it’s worth maintaining contact with all recent team members to understand if this is an area where your assistance is needed.
SUPPORT YOUR LOCAL COMMUNITY
COMMUNITY OUTREACH
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Repurpose your hotel(s)
Usual trading may not be possible at the moment, but you can take steps to repurpose your hotel and help the local community through the crisis.
Property management system providers Apaleo have launched a platform called #HospitalityHeroes, which allows hotel brands to list their rooms in order to aid the fight against COVID–19. Getting set up requires minimal effort and can be completed quickly and remotely. Once inventory is listed, Apaleo will notify public institutions and healthcare partners, while others in need of accommodation space can make bookings through the live platform.
Cloudbeds is another provider involved with their #HospitalityHelps platform, which has already seen over 1.2 million beds pledged. The programme helps hotels repurpose as temporary hospitals, as well as providing vital accommodation for non-critical quarantine cases, key workers and caregivers.
Similarly, Bookster’s COVID–19 portal allows NHS workers to find and book short-term accommodation with no rental fees.
The industry is showing incredible creativity and pragmatism, with some hotel chains such as IHG striking deals with local authorities to accommodate homeless people to prevent the spread of the virus. Please let us know what other schemes are taking place in your local market, so we can spread the message far and wide..
CONTACT US TO DISCUSS WHAT’S RIGHT FOR YOU ➜
OUR EMERGENCY TOOLKIT
We’ve assembled solutions that:
They are currently offering three-month free trials to students so it is worth giving them a call to discuss a bespoke plan for your hospitality workforce. Duolingo is another highly rated language app that offers both free and subscription-based courses.
Mentorship
If this is the first major downturn that you’ve had to deal with in your career as a hotelier, you may well be feeling overwhelmed by the number of difficult decisions you’re faced with each day. The Growth Works is launching a pro-bono hospitality mentorship service so that early-career hoteliers can learn from experienced hospitality professionals who have previously navigated a sustained fall in demand. The programme will take the form of regular video conferences, intimate sessions of one mentor and up to five hoteliers. To participate as a mentor or mentee, sign up here.
www.thegrowthworks.com hello@thegrowthworks.com
UPSKILL YOUR TEAM TO TAKE ON NEW CHALLENGES
E-LEARNING & DEVELOPMENT
Time to focus on development
Many hoteliers are encouraging their teams to use this extended period of time at home to progress their expertise through online courses and qualifications. This is an excellent way to keep your teams engaged while not at work and will help them hit the ground running during the ever-so-important recovery phase.
The team at AETHOS, a leading hospitality advisory firm, have put together an online psychometric assessment called 20|20 Skills, which helps hoteliers measure the effectiveness of hospitality staff across ten core competencies. Following the assessments, you’ll be given an action plan to help leverage the results and manage your team.
You may have a Learning Management System and access to training. If not, prestigious education institutions such as EHL and eCornell offer a range of qualifications across functions, including revenue management, hospitality digital marketing, hotel planning, service excellence and food and beverage management. If you’re finding it difficult to justify investment right now, providers are being flexible given the crisis.
Handpicked online courses
Another skillset highly relevant to the hospitality industry is foreign languages. This is a great time to look at your visitor data and suggest that members of your team improve their language skills in relation to the international makeup of your guests.
Rosetta Stone is a popular tool offering 24 different
languages.
SIGN UP TO BE A MENTOR OR MENTEE ➜
Gift vouchers
Gift vouchers support your cancellation policy - why not offer the chance of returning at a later date.
While guests may be reluctant to make a future booking during these uncertain times, people are still buying gifts for birthdays, anniversaries, etc. This presents an opportunity to tap into the growing demand for experiential travel experiences and – most importantly – bank some much-needed cash right away.
With our chosen partner SK Chase, you receive full training and your marketing and social media can focus on allowing people to purchase future stays and experiences, with the flexibility to redeem well into the future. We recommend bundling extras together, such as welcome drinks, restaurant meals, spa treatments and local tours, to make the gift vouchers as appealing as possible.
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KEY STATS
NEW REVENUE STREAMS WHICH AREN’T GUEST-BASED
UNLOCKING NEW REVENUE STREAMS
Food delivery
On the advice of governments and health service providers around the world, countries on lockdown are turning to delivery services to distribute food. Human contact, and therefore the chance of infection, is minimised by leaving the food on the doorstep.
Perhaps a food delivery service would work for your hotel. We’re working with UberEats to help hotels turn underused kitchens into food delivery hubs. In five days you could have the platform, which handles marketing, sales and delivery of your food, up and running. A partnership of this kind brings in around £4K-8K of revenue per month, per property. This could be the difference between holding onto your chef and kitchen staff, or sending them home.
www.thegrowthworks.com hello@thegrowthworks.com
WHAT THEY OFFER
Playbook to run one of their simple in-house brands PLUS list your own venue if desired
Visibility on three platforms - Uber Eats, Deliveroo and Just Eat
Simple, optimised kitchen operations
Low ingredient and packaging costs
Complete setup service
Staff training service
Ingredient sourcing service
Simple, transparent commission
Provide UberEats your address, their system tells you what sells and revenue levels
Selling via the platform within 5 days
Trainer and training ingredients on-site within 3 days
HOW LONG IT TAKES TO START
PRE-REQUISITES TO USE
Kitchen
Staff
Accessible location
IN A NUTSHELL
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SPECIAL “DOWNTURN” OFFER
Usual site fee = £2,000
Reduced to £1,200 for The Growth Works partners & recovered as sales grow
Fee covers iPad and printer, trainer (2x sessions for your staff) and activation across 3x delivery platforms
TYPICAL MONTHLY REVENUES
During standard trading, +198% uplift to restaurant sales at a margin of 40%+
For each platform (partner with us and be on all three), the best sites drive a £8,400 monthly turnover with average monthly turnover sitting at approximately £4,000.
FOOD DELIVERY DONE RIGHT, UP & RUNNING IN 5 DAYS
MAXIMISE YOUR KITCHEN’S POTENTIAL
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WHAT THEY OFFER
Generate revenue and increase cashflow with SKChase by marketing gift vouchers to previous customers, your local audiences, for now and the future. You can easily adapt the offering, the message and the validity to leverage it right now - even if you are closed or have reduced capacity.
Training and set-up are included
Within days: once the contract is signed the offers can be set-up very quickly.
HOW LONG IT TAKES TO START
PRE-REQUISITES TO USE
Ability to have links to the gift shop on your website
Requires a level of promotional activity - including activating on your social media; reviewing and tweaking offers
IN A NUTSHELL
CLICK HERE TO CONTACT THEM➜
SPECIAL “DOWNTURN” OFFER
Free set-up of your voucher site
You only pay when you sell thanks to a tiered commission model
TYPICAL MONTHLY REVENUES
Depending on the property’s facilities and location, between £3k-£20K
SELL GIFT VOUCHERS FOR YOUR HOTEL, RESTAURANT & SPA
CASH IN WITH DIGITAL HOTEL VOUCHERS
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WHAT THEY OFFER
BYHOURS is the first platform to offer hotel microstays. Book in quality hotels for 3, 6 or 12 hours and sell your empty room inventory.
There’s no minimum allotment and no minimum permanence. Hotels have total flexibility and control over their inventory and an account manager at their service.
From the moment the contract is signed, it takes about 2 days to start. Only need to have one training day where they teach the person in charge how to use the platform.
No technical implementation required.
HOW LONG IT TAKES TO START
PRE-REQUISITES TO USE
A computer and a trained employee.
IN A NUTSHELL
CLICK HERE TO CONTACT THEM➜
SPECIAL “DOWNTURN” OFFER
Reduced Commission for our partner hotels for the first 2 years. Usual commission is around 16%.
TYPICAL MONTHLY REVENUES
Up to £3K of monthly revenue.
+ 50 Extra Bookings
£50 Average Ticket
TOTAL FLEXIBILITY AND CONTROL OVER INVENTORY WITH BYHOURS
DRIVE EXTRA REVENUES FROM EMPTY ROOMS
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HOW TO OPTIMISE REVENUES WITH REMAINING GUESTS
OPTIMISING REVENUES
Metasearch
During a downturn, you need to adjust your strategy and focus on lower-funnel activity like retargeting and metasearch. If somebody shows an interest in your property during this time, by visiting your website, it’s crucial to capture the booking.
We’re working with Triptease, who specialise in using data and live pricing to optimise personalised customer journeys that lead to more direct bookings.
Safe Haven
Another way to optimise revenue is to start allowing guests or workers to rent out public areas, meeting rooms, or hotel rooms and resources during the day. As offices, and co-works close, co-work or day-rental businesses that offer a safe haven for locals or visitors who need somewhere to go for short-term isolation are proving popular.
Cancellation
Offer flexibility (and advertise it for future bookings). It’s better to receive a booking by offering guests some flexibility than have them book elsewhere - and encourage guests to postpone, not cancel.
KEY STATS
Where government regulations allow hotels to continue running, there are tactics you can use to preserve your business. If you simply need to shut your doors, skip ahead to Build for Recovery.
Rates
We know it’s tempting, but dropping your rates is not the best course of action. When the drop-off in bookings isn’t price-related, as in the current climate where nothing will persuade people to travel, a price cut won’t reverse it. It’s still important to optimise your room revenue in tough times, and to prepare for later. Our chosen partner Catala Consulting offers practical, crisis-focused revenue management services on a consulting basis.
Marketing
If you are still getting guests through the door, don’t stop marketing, but review and adjust regularly to preserve cash.. During past crises, maintaining spend has resulted in strong performances. Hotels spending even a little on marketing during the financial crash of 2008 recorded 18.5% higher revenue per available room (RevPAR) than those that slashed marketing..
Upselling
It’s important to maximise your potential to upsell different services to your remaining guests. Creative upselling options – with a pre-arrival email featuring attractive stay-enhancing options – could help recoup some of your hotel’s lost revenue.
Our chosen upselling platform, Oaky, can be implemented in a matter of hours, at a very low cost.
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WHAT THEY OFFER
Triptease provides a complete solution with which to manage onsite conversion optimisation parity and digital marketing
Data & analysis plays a crucial role on Triptease’s platform, and they are using their findings to help hotels regain a sense of control and predictability over their guest acquisition strategies
Onboarding usually takes around 10 days including activating & training
HOW LONG IT TAKES TO START
PRE-REQUISITES TO USE
No prerequisites - if you’re a hotel over 30 rooms, you’re good to go
IN A NUTSHELL
CLICK HERE TO CONTACT THEM➜
SPECIAL “DOWNTURN” OFFER
Triptease is helping hoteliers with an introduction to their products, running a programs where hotels can try solutions with zero risk
TYPICAL MONTHLY REVENUES
Pre-downturn, Chroma Hospitality saw 44% increase in conversion with $75k revenue generated through Triptease’s Metasearch smart bidding solution in one month
THE LEADING PLATFORM FOR DRIVING DIRECT BOOKINGS
LOWER-COST DIRECT
BOOKINGS RIGHT NOW
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WHAT THEY OFFER
Oaky gives guests the option to customise their stays pre-arrival thanks to a full suite of upselling offer sent through personalised, high-open-rate emails.
Besides, allowing guests to customise their stays also drives improvements in satisfaction!
Following an initial onboarding questionnaire link, whether you are an independent or a chain, up and running in less than a week
HOW LONG IT TAKES TO START
PRE-REQUISITES TO USE
None at all - it all happens via emails; can be launched to most guests within a few hours (Oaky have pre-arranged integration with leading OTAs and systems)
IN A NUTSHELL
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SPECIAL “DOWNTURN” OFFER
For the downturn, Oaky is offering a free trial period, and a money-back guarantee after that, which allows properties to see the results for themselves
TYPICAL MONTHLY REVENUES
Typically between €5-10K a month in upsold revenue, thanks to more direct bookings, higher room categories…. etc.
NO. 1 UPSELLING TECHNOLOGY FOR HOTELS
BOOST REVENUE, IMPROVE GUEST EXPERIENCE
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WHAT THEY OFFER
Catala Consulting is an on-demand revenue management-for-hire offering specialised in practical, actionable services
By understanding your most valuable customers and channels especially during challenging times, you can develop targeted marketing campaigns and dynamic pricing strategies which maximise your return on investment
After the initial consultation and depending on what you need, takes just a few days
HOW LONG IT TAKES TO START
PRE-REQUISITES TO USE
No prerequisites, Catala Consulting can work with your existing tools easily.
IN A NUTSHELL
CLICK HERE TO CONTACT THEM➜
SPECIAL “DOWNTURN” OFFER
Catala Consulting is offering everyone a first 30-minute consultation for free
For the first 20 ebook sign-ups, their outsourced revenue management offer is free for 2 months
TYPICAL MONTHLY REVENUES
More than 95% of hotels supported by Catala Consulting saw RGI increases in 2019!
ON-DEMAND REVENUE MANAGEMENT, WHEN YOU NEED IT MOST
CRISIS REVENUE
MANAGEMENT FOR ALL
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3 PRACTICAL WAYS TO REDUCE YOUR OUTGOINGS AND IMPROVE EFFICIENCY
MANAGING
YOUR COSTS
Technology & automation
If you haven’t considered upgrading your hotel tech offerings, this period of low occupancy could be the time to think about implementing some Internet of Things (IoT) services, such as online check-in and mobile room keys.
We appreciate these may not be your main concern right now, but these automation services could have an immediate reduction in payroll, while also bringing your properties in-line with changes sweeping throughout the industry.
During this time of heightened health concerns, if you are still receiving guests, they will likely appreciate minimal human contact. Trends towards automation have led to technological advancements that reduce staff hours and streamline a number of processes.
KEY STATS
Procurement
There are agencies who can save money by handling the bulk purchasing of items such as linen, towels, toiletries, furnishings etc. Search for local agencies, as these are usually the most responsive and the best value - they often work in return for a share of savings.. Finding the right partner could instantly wipe a sizable chunk from monthly outgoings.
Energy management
After payroll, energy consumption is the biggest cost for most hotels. This is an area rife for optimisation and we’ve spoken to energy management providers who report that the average hotel property could save 20% on energy costs by addressing its resource consumption.
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WHAT THEY OFFER
INTEREL is an award-winning energy management and guest-room control solution with products ranging from low-cost, WiFi networked thermostats to complete and complex luxury guest-room control for lights, drapery, guest services and more. A hospitality focused company, INTEREL is deployed in more than 45 countries and used by more than 30 Million guests in hotel rooms across the globe.
If you have an INTEREL system, it takes a week to assess changes, make the program modifications, and distribute the updates to the guest rooms over the network.
For a new install, it would take a few weeks..
HOW LONG IT TAKES TO START
PRE-REQUISITES TO USE
None.
IN A NUTSHELL
CLICK HERE TO CONTACT THEM➜
SPECIAL “DOWNTURN” OFFER
INTEREL is offering all properties utilizing our guest room and energy management systems a free system review to establish strategies for curbing energy use and expenses, as well as free consulting with potential properties who would like to explore an energy management solution.
TYPICAL MONTHLY SAVINGS
Based on the system installed, monthly energy consumption is reduced by 15-35%.
SWITCH TO A LEADING ENERGY MANAGEMENT & ROOM CONTROL SOLUTION
REDUCE THE COST OF MONTHLY UTILITIES
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KEY STATS
It’s hard to see past the current situation, which is quite frankly a dire one.
But it is important to note that travel trends often rebound fast after a downturn. For example, Ctrip reported an 28% increase in flights on the other side of the SARS outbreak.
This means you need to be prepared for the recovery and ready to tailor your marketing campaigns when sentiment shifts. This is especially relevant to hotel brands with a notable number of properties in Asia, or that usually attract a significant number of Chinese travellers.
While activity is at a lull, it could be the perfect time to implement solutions that will increase efficiency and revenue - both today and in the long run - partnerships that you didn’t have time to activate while your hotel was running at full capacity.
Yes, times are tough but don’t go into hibernation and shut out the experts. We’re a close, passionate industry, built on helping each other, and now more than ever we can quickly learn from each other, support our peers and soften the impact.
FREE CONSULTATION WITH US ➜
ENSURING YOU’RE PREPARED FOR THE BOUNCE BACK
BUILDING
FOR RECOVERY
KEY STATS
It’s hard to see past the current situation, which is quite frankly, a dire one.
But it’s important to note that travel trends often rebound fast after a downturn. For example, Ctrip reported an 82% increase in flights on the other side of the 2003 SARS outbreak.
Be prepared for the recovery
This means you need to be prepared for the recovery, and watching for it’s early signs, ready to tailor marketing campaigns when sentiment shifts. This is especially relevant to hotel brands with a notable number of properties in Asia, or that usually attract a significant number of Chinese travellers.
While activity is at a lull, it could be the perfect time to implement solutions that will increase efficiency and revenue – both today and in the long run – partnerships that you didn’t have time to meet with or activate while your hotel was running at full capacity.
Easy (and safe) meetings
For example, our chosen meetings and events booking platform, Meeting Planner, allows you to list your event spaces with the ease and efficiency of listing a room. With the increasing number of workers that are unable to go into their headquarters or coworking spaces due to office closures, there is potential to rent out spaces in your hotel to local employees who want a safe, sanitary place to work.
Onboard for the future
Even if there is no demand for your meeting spaces at present, it makes perfect sense to onboard a partner like this while things are quiet. A little bit of forward planning can open the door to future bookings and instant cash, as each event reservation is pre-paid.
Yes, times are tough but don’t go into hibernation and shut out the experts. We’re a close, passionate industry, built on helping each other. And, now more than ever, we should be quickly learning from each other and supporting our peers to soften the impact.
If you’d like to discuss how to cope with crises in more depth, we and all our partners offer free initial consultations. We also have a mentorship programme featuring a selection of highly talented ex-hoteliers who are happy to share wisdom from their experiences managing past hospitality crises.
www.thegrowthworks.com hello@thegrowthworks.com
WHAT THEY ARE DOING
Apaleo is a cloud-based, connectable and scalable PMS for hotel management which easily connects to dozens of your favourite tools..
To help fight Covid-19, they created an easy way for hoteliers to offer inventory to national and local governments where they need it most.
Upon registering your hotel inventory, we will add it to our platform immediately. We added around 190 hotels and over 20,000 rooms in the first 5 days of the campaign.
HOW LONG IT TAKES TO START
PRE-REQUISITES TO USE
None. You just need a computer, tablet or mobile phone and an internet connection.
IN A NUTSHELL
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JOIN THE CAMPAIGN - FOR FREE
Register below to offer your inventory. Apaleo is in touch with the relevant public bodies in different countries and will initiate contact with hotels, where requested.
In addition, for any hotels temporarily repurposing as isolation centre, hospital overflow, healthcare staff accommodation, homeless shelter, etc., who do not wish to use their existing PMS for this purpose, you may use Apaleo for as long as you want at zero cost.
OFFER YOUR INVENTORY TO PUBLIC BODIES WHO NEED ACCOMMODATION FOR NON-CRITICAL QUARANTINE CASES AND HEALTHCARE STAFF WITH APALEO
CONNECTING HOTELS
TO BEAT COVID-19
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WHAT THEY OFFER
Offer your future guests a healthier, no-physical-contact check-in experience with Abitari.
Streamline your check-in processes accompanied by your staff, automate the reception during the night shift or build your own 100% staff-less hotel: with Abitari Kiosk you can choose which kind of check-in process you want.
Less than a week
HOW LONG IT TAKES TO START
PRE-REQUISITES TO USE
A compatible PMS
A compatible Door lock system
Choose which kind of check-in process you want
IN A NUTSHELL
CLICK HERE TO CONTACT THEM➜
SPECIAL “DOWNTURN” OFFER
Free during the COVID-19 crisis (while weekly occupation is under 25%).
TYPICAL MONTHLY REVENUES
Depending on set-up, you could get incremental bookings from guests mindful of physical contact, and save up to 90% of check-in-associated costs.
CONVERT ANY TABLET INTO A SELF CHECK-IN KIOSK FOR YOUR HOTEL WITH ABITARI
OFFER YOUR GUESTS A CONTACTLESS STAY
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WHAT THEY OFFER
JustPark is a leading provider of car park management, allowing hotels to maximise their pricing, occupancy and overall revenues from 4.2 million registered drivers.
JustPark users can pre-book, reserve and pay for car park slots directly online, solving parking problems in city centres
Just Park is currently for UK hotels only
Depending on the facilities, between 2 and 4 weeks are sufficient to be completely up and running.
HOW LONG IT TAKES TO START
PRE-REQUISITES TO USE
Ideally a central location, obviously with a car park, and with a minimum of 5 slots to put on the platform.
IN A NUTSHELL
CLICK HERE TO CONTACT THEM➜
SPECIAL “DOWNTURN” OFFER
VIP treatment for all hotels signing up through the Growth Works!
Zero cost set-up and higher revenue shares offered to support hotels
TYPICAL MONTHLY REVENUES
Revenue forecast is provided during the first contact, but typically £3-9K of annual incremental revenue per parking bay
MARKET & SELL UNDERUTILISED SPACE TO 4.2 MILLION JUSTPARK DRIVERS
MAX OUT YOUR CAR
PARK’S OCCUPANCY
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WHAT THEY OFFER
MeetingPackage software gets meeting rooms distributed & booked as simply as hotel rooms - live on your site & partner sites
A prepayment offer generates income at time of booking, for future meetings
Online fulfilment frees up sales teams for other work
Global network of Corporates; Travel Management Companies & Event teams
Launch on your website in a few days; and start reaching business through partners
HOW LONG IT TAKES TO START
PRE-REQUISITES TO USE
Small & midsize meetings rooms
Just need an internet browser!
Later, can flexibly integrate if needed
IN A NUTSHELL
LET’S TALK ➜
SPECIAL “DOWNTURN” OFFER
MeetingPackage are offering a free trial of their full product suite to new venues until May 31st
TYPICAL MONTHLY REVENUES
A new EU city hotel customer generated 23 confirmed bookings and £15k/€18k per month across Jan & Feb 2020
ALL-IN-ONE MEETING PACKAGE SOLUTION
DRIVE LIVE MEETING BOOKINGS & REVENUES
DID THIS HELP YOU? WHAT COULD WE DO BETTER? LET US KNOW AT HELLO@THEGROWTHWORKS.COM
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FEEDBACK
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