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:-
When revenue management is under control, good things start to happen.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Discounting campaigns to create demand.
Many hotels use rate discounting campaigns as an attempt to attract customers.
These products do not necessarily create demand but reveal a need that was not apparent under the previous pricing strategy.
Keep an eye open for how & when your competitor’s introduce discount campaigns.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Dynamic pricing - the only way to go ?
Many assume that in order for dynamic pricing to be successful, the process requires years of historical data combined with years of time and resources to implement.
The magnitude & immensity of the task is off-putting for many hotels.
In reality, dynamic pricing does not require a large digital transformation project at all because technologies such as smart price optimisation and management software do the work in enabling hotels to price rooms quickly and accurately on sales channels.
Have a profitable week.
✌🏼
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.
✌🏼