Today's Revenue Management thought:-

WTF…….

How many times do you say this to yourself on a daily basis ?

The abbreviation is however not what you think - What’s the Forecast - is what you should be thinking day in & day out.

Forecasting allows you to find :-

• Hidden opportunities, 

• Dates in need for corrective measures 

• Increase Operational Efficiency 

• Reach New Levels of Profitability

So continue thinking WTF…….

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

All too often we focus on sales….. how many have dipped into lost sales.

Don’t just blame price for lost sales. There is so much more to a buyer's decision than price.

• Not enough value was on offer

• Presentation of value was poor

• Booking process confusing

What happens if I reduce lost sales ?

Cha-ching! It all comes down to two words “more money.”

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Few hotels understand their true value and they had to work hard to learn what that value is.

Knowing the value of your product isn't easy, but it's worth it.

It's how you get to earn better prices, better customers, and better profit.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

When was the last time you considered the GDS connectivity as being an essential part of your distribution strategy.

Did you know that once connected to a GDS, a hotel becomes bookable by thousands of travel agents and corporate buyers on a global scale.

The vast majority of new booking opportunities will come from business travellers.

Being connected entails that your hotel will:
- participate in various Consortia programmes
- negotiate corporate rates with top companies
- attract loyal returning corporate guests

Don’t oversee this distribution opportunity.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Don’t Forget the Customer !!!!

Everything we do in pricing is for or about the customer.

Your hotel exists to create value for customers. Pricing simply captures some of that value.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Let Us Be Very Clear ……

Revenue Managers Do Not Create Demand.

We can capitalise and optimise demand by capturing it at the right price points.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

"Complexity is the enemy of execution”.

This statement fits perfectly into the world of revenue management.

It prevents many from moving ahead, mostly because of the "perceived complexity" that "awaits". Therefore, the mere thought of execution puts an end before the starting line.

As the Nike slogan says - Just do it !

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

“Honesty is the best policy”

Your prices are a signal of your quality.

Be honest & set your prices to being consistent with your quality.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Some of our clients are faced with a high proportion of bargain hunters in that their client base is via OTA’s. This is not because these customers are bargain hunters by personality trait, but because OTA’s have educated their customers to become bargain hunters by offering more and more discounts.

How do you deal with such a situation as a hotelier ?

The problem with discounts is not only that they are poison for your margins, but that they work like drugs: to achieve the same effect, you need an ever higher dose.

So we need to organise rehab ?

Fortunately, there are many other ways to give the impression of advantageousness (that’s what bargain hunters actually are looking for) and make customers feel like they're getting a particularly smart deal (the “fix”).

For example, on your own website:

⏱ Limited-time offers
📦 Limited-quantity offers
📊 Different pricing intervals in your room assortment
🏷 Higher priced room types moderately adjusted compared to mid-priced room types, to make the latter appear less expensive,
etc.

All these measures protect margins and therefore make more sense than discounts.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

How can you set your prices right if you don't know your customer's willingness to pay.

It's all about the customer and customer perception.

And you cannot sell value without communicating value

Have a profitable week.

✌🏼