Why should I barter with ITM?
To gain new business and incremental revenue.
Barter is an advantage any time you use available inventory and receive full value towards services for which you would normally pay cash. Barter affords the opportunity NOT to discount, or lose a sale, while increasing profit. Some key reasons to barter with ITM:
• Increase occupancy and average rate
• Obtain corporate end users to bring incremental dollars with repeat potential
as a cash paying customer
• Hotel expertise and high level of service
What are the advantages of barter?
Using unsold rooms as equity to increase marketing dollars and brand awareness.
The lost revenue resulting from an unoccupied room night, airline seat or cabin can never be recovered. Barter permits clients to expand their advertising budget by using unsold inventory in exchange for advertising placements or other services. This transaction allows clients to achieve higher occupancy with the prospect of repeat business. Trading also results in increased profit from cash flow savings, incremental revenue and reduced marketing expenses.
How do I incorporate barter into my budget and marketing plan?
Include a barter line in your budget and estimate revenue that can be traded from a percentage of unsold rooms.
How do I determine my barter budget?
By trading 1% of potential room revenue on an annual basis, a hotel can achieve a substantial budget to exchange for valuable marketing goods and services. For example, a 200 room hotel with an average rate of $300.00 per night can achieve over $200,000 of barter credit by using just 1% of their potential room revenue.
When is the best time to barter?
Whenever a hotel has unsold inventory, it can optimize that equity through barter to:
• Support the sales effort with a cohesive advertising campaign
• Impact low season business and gap periods with a tactical campaign
• Launch new products
• Test new markets
• Test new media
• Handle an unexpected dip in occupancy
How will I receive the advertising or services requested?
ITM will provide a media schedule tailored to hotel and/or ad agency specifications. All schedules must be approved prior to booking. ITM’s Media Department will traffic schedules and provide proof of performance for all media placed. Direct mail, printing and merchandise orders must also be approved prior to fulfillment and will be shipped in a timely manner.
What is the benefit of bartering if the cash advertising budget must
be charged dollar for dollar?
Your budget is an internal document. When a barter line is added to the budget, the barter transaction enhances occupancy and rates when posted on a dollar for dollar basis. The bartered revenue from the end users of the barter credit, as well as increased sales generated by the advertising campaign, offset room cost and increase profit.
Who will use the hotel credit?
ITM’s corporate and media clients will use your available inventory, including rooms, food and beverage venues and recreation facilities, based on availability. These clients represent new business and future cash revenue.
How are hotel credits booked?
All hotel, travel and merchandise requests go through ITM’s professional Client Services Department. From individual travel to group meetings or special events, ITM’s staff is experienced in handling every detail.
ITM expands your budget with barter
ITM’s unique ability to trade for advertising, travel, merchandise, and other services, makes it the recognized leader in hotel barter. Find out how ITM can expand your buying power and deliver increased revenue and greater profitability. Contact us now.