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.

✌🏼

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.

✌🏼

Today's Revenue Management thought:-

Would your pricing strategy pass this test ?

You know your pricing strategy is working…because your hotel is receiving reservations every day.

Is it ALSO true that your pricing strategy is costing you money?

Does your pricing strategy:

• Put your hotel at risk of not maximising it’s daily revenue potential

• Put your hotel at risk of reduced revenue every day

• Motivate clients to ask for rate reductions if other hotels charge less

• Attracting the wrong segments for your property

• Squeeze profit margins

• Require costly systems to track and administer revenue

I did a simple exercise with a client to test the alternative: “What if your pricing strategy had been value based pricing instead of being based on comp. set analysis ?”

How would that impact their actual revenue compared to forecast?

Test results - Major revenue increases and a better utilisation of capacity….. and an increased auxiliary spend

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

The concept of differential pricing increases total profits for your hotel.

You will however have to think about:-
- How can you differentiate between the two segments and structure your pricing to make one segment pay more than the other ?
- How can you control demand so the lower-paying segment does not use the entire availability ?

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Never underestimate your challenge or your ability to deal with it.


Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Win by personalisation, not standardisation.

Think out of the box - who want’s to stay in a standard product

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Plans are only good intentions…...

Put them in action

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Your USP is never what you think it is.


It is what your customer think it is.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Everything is on sale…….

If the price is right !

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Acquaintances will ask for discount prices.

True friends will pay the price, to support you, your business, your time & work.

Make your guests your friends.

Have a profitable week.

✌🏼