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 is not ONLY about controlling margins !
ACTUALLY pricing is about controlling value.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Your pricing strategy should focus on 3 KPIs.
Price Realization, how close we are selling at our target price ?
Margin, how profitable are we when we sell at the current price ?
Growth, did I price it right so that we are not losing deals and opportunities ?
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Your pricing strategy will require more depth and direction than simply looking to maximise profits.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
“I hate overbookings”, says the guest, who was “turned away”.
“Overbooking is a great revenue strategy”, says the hotel manager.
Who is right ?
A bad overbooking strategy can cause a lot of damage and a whole lot of stress: from guests to staff. It often leads to bad online reviews, harm to your online reputation, financial loss, and “real-life” complaints.
If you plan it right, you open the door to revenue optimisation and even guest satisfaction. You must be well be prepared for all the possible scenarios for this to work.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Profitable hotels are ones that have deep knowledge of their guests.
Where they come from, how far out they book, and how many of them will end up cancelling. Tracking these metrics allows you to plan accordingly and be prepared for the worst.
That way, when that notorious cancellation notification comes, there are no surprises and you can simply say, “I know.” Knowledge is powerful.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Consumers vs. Revenue Managers ?
A growing number of customers have learned over the years that the strategy of “book and search” - thanks to flexible cancellation policies - and this is reeking havoc on yielding strategies.
Use your cancellation terms as a tool in the price discrimination mechanism - with other words, the cancellation policy terms are now the way to identify (willingness to pay) and enforce.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
It’s summer time.
Get creative and drive revenue with your perishable inventory.
Have a profitable week.
✌🏼
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.
✌🏼