Today's Revenue Management thought:-

Your hotel can generate lots more revenue with some very simple commitments:

• Always respond quickly to emails, voice messages and inquiries - online is not always your most profitable or your only sales channel

• Always respond positively and proactively to reviews no matter how bad they are

• Do the hard things even when–especially when—they are inconvenient for you - drill down into your data & discover

• Communicate regularly and frequently to remain top of mind with your guests

  
  Have a profitable week.
  
  ✌🏼

Today's Revenue Management thought:-

If you’re not out of the start hole… you should get moving:-

• Keep yourself informed - reading of industry news, study industry statistics & trends from your feeder markets

• Analyse and track - how is the future on the books demand for your hotel vs destination vs compset moving

• Rethink Segmentation - To diversify your segment mix and target the right segmentation, you will probably need to think outside the box and be creative in your offers and packaging

• The price drop is the only way when value ends, don’t give up on value !

• Plan your revenue strategy per month: start now and revise when necessary, always keeping a close eye to the forecast.

Keep your friends close, but your enemies closer - assess your own and your competitors’ distribution mix, will make this the right moment to reconsider the channel mix and plan your strategy moving forward.

Write down your strategy but do it in pencil. Get ready to change, modify and adapt. Remain positive.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Lost opportunity:-

• Having flat pricing through the year or 4 seasonal rates

• Charging too little

• No differentiated - days of the week - pricing

• Failing to respond to demand changes (on time)

• Little price difference between Minimum & Maximum prices

• No use of Length of stay restrictions (LOS)

• Not really understanding the importance of dynamic pricing

I know that it can be difficult to do all of these things, but give it a try - tweek here & there - there is nothing to lose!

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Abraham Lincoln was quoted as saying - Give me six hours to chop down a tree and I will spend the first four sharpening the axe.

Make sure you have the right tools in place before you try to accomplish the task.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

More revenue is good, right?

Wrong !

You need to keep profitability in mind so that you don't drop rates to increase occupancy...and actually make less money because you have fixed costs to service each additional room.

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:-

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.

✌🏼