Today's Revenue Management thought:-

I had an interesting chat with a potential new client a few weeks ago. They were very proud to tell me that they prior to Covid have had constant 90% occupancy and expect to get to that level again in the very near future without having to do anything with their pricing (i.e. they don’t need help)

My response: you will be too busy. Aim at 60 - 70% occupancy but put your pricing up. Make the same money for less cost and less rush.  Also take into account that you have staffing issues - so 90% occupancy is not something you are geared to deal with.

Clients response: But what if my customers don't want to pay more? 

My response: Lets find out. 

Are you generating the right revenues ? Are you managing your occupancy to ensure your costs are minimised? High occupancy isn't always the end goal. 

Have a profitable week.

✌🏼