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:-
Underpricing is rarely the solution to any pricing troubles.
You end up dropping into a different segment of customer and lose out on cash from your current customers.
A race to the bottom is one of the worst ways to compete. Lower prices equals lower revenue rates, which means the number of sales must increase to cover the loss.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
The only way to increase sales is by decreasing price.
It may sound too good to be true, but it is possible to raise prices and increase volume at the same time. Price isn’t the only factor that attracts consumers.
Focusing on giving consumers a reason to pay a higher price is crucial, whether that be greater quality or friendlier service.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
We need to accept market or competitor pricing.
This is a convenient excuse for marketing managers to abdicate responsibility for pricing.
Simple product and brand differentiation can take you well above the market standard. Hell, even basic things like psychological pricing can set you a part and justify price increases.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Desperation is not a strategy. Neither is hope.
You must approach your revenue management decisions in the same manner that medical staff deal with the critically wounded.
You must make quick, unemotional decisions which do the most good for the most people.
Then….you keep a critical eye on the long-term outcomes.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Targeted price reductions are an essential component in any robust pricing strategy.
I can tell you how many times I’ve seen a hotels drop prices, just because they can’t think of anything else to do to compete.
It’s just too easy.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
It’s my birthday & another year has passed.
I am never really aware of time because I am passionate about what I do, so I have found that if you really love what you do, then time flies.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Undisciplined Discounting.
I recognize that, once we are on the road to recovery, discounting will be an absolutely essential component of your Revenue Management arsenal.
However, it must be done with precision
Have a profitable week.
✌🏼
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.
✌🏼