Insights & Strategies for Independent Hoteliers.
Today’s Revenue Management Thought - ran for 4 years
Now I publish Monday Revenue Rethink each Monday
5 Revenue Management Mistakes
Costing You Money
Dynamic Pricing Myths
Holding Your Hotel Back
How to Compete with OTAs
Without Losing Margin
The Power of a
Balanced Channel Mix
Today's Revenue Management thought:-
Pricing with growing inflation is a challenge that's every bit as uncomfortable as it is pressing.
If you want to thoughtfully and effectively address your pricing during inflation, you should start by reviewing the discounts you're currently offering.
In many cases, a "discount reduction" comes off as less imposing than a "price increase."
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Inflation is galloping away, and having severe consequences on our pricing.
What do we do about our prices?
Adjusting prices for inflation is more complex than looking at the overall inflation percentage and increasing all of your prices to fit that figure.
You want your inflation-driven pricing to be fair.
"Fair" is a frame of mind — it's a matter of customer perception.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Thinking about everything that goes into pricing can make your head spin:
competitors
operating costs
customer demand
profit margins
… the list is endless.
Thankfully, you don’t have to master all of these factors at once.
Just remember pricing is an dynamic process. It’s highly unlikely that you’ll set the “right prices” — it will be hit & miss on many occassions, and that’s OK.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
How to determine & set your room or service’s prices shouldn’t be a haphazard decision focused entirely on profit.
It should be a calculated, informed choice in which your identity, brand and financial stability are considered.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Prices are more than just numbers.
The way you price your rooms or services can be a reflection of your business’s identity, how you view and treat your competitors and how you value your customers.
That’s why it’s important to have a carefully planned pricing strategy.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Always think about how to add value to your business & services.
The more value you create in your business, the more you earn the right to raise your prices.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Hotel management teams love having data to help make decisions.
Data is awesome.
It just doesn’t tell you what’s in your buyer’s mind.
If you want to win more business at higher prices, you need to have value conversations with your guests.
Listen to your customers & your market.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Hotel management teams love having data to help make decisions.
Data doesn’t always give us the answers.
Data allows us to test theories or strategies & provides interesting correlations between variables.Regardless of what our data tells us, in the end, we need buyers to be willing to pay more.
They don’t pay more because we don’t ask them to.
They don’t pay more because they have a price limit.
They don’t pay more because they don’t know how good our product is.
Who knows ?
You should & your hotel should!
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
New day…. same procedure ?
Success is often the result of boring consistency applied to the right things.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Budgets in pen.
WTF……….
That’s “What’s the Forecast” - for those who did not see yesterday’s post.
Forecasts in pencil.
Have a profitable week.
✌🏼