Today's Revenue Management thought:-

Not all business is good business….. calculate properly before making your offer.

An ex colleague called recently. His new(ish) group reservation manager had taken in a film crew, who would occupy 50% of his capacity for 4 months (Sunday to Thursday). Sounds great… big problem…. he runs a property that lives on meetings & events, and the agreement made with the film people was extremely favourable.

This entails that he has roughly 50% of his capacity left in his main revenue season to generate upwards of 80% of his Total Revenues.

Do the maths, know you revenue flows, consult your colleagues, establish revenue meetings and strategies to avoid making costly mistakes.

This case can be saved - we have adjusted distribution strategies focused on reducing distribution costs, increased marketing activities on selling weekend packages, and started marketing smaller “exclusive” meeting packages.

Have a profitable week.

✌🏼