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:-
As a Revenue specialist, you tend to spend all your time managing day-to-day operations.
There’s little time for strategy.
Those who understand how to identify trends & opportubity are most likely to be successful.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
"Price is what you pay. Value is what you get." - Warren Buffett
Pricing should based solely on how much value your customers find in your hotel.
Customers don’t care about how much or how little you spent on branding and refurbishing your hotel and if you’re offering a unique experience.
The moment you make a mistake in pricing, you're eating into your reputation and your profits.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Focus on your pricing power - your ability to charge more without loosing customers.
Understand how pricing power relates to price elasticity.
Think about how it’s:-
a competitive advantage
a perceived value
Think of what can you do differently to improve your pricing power today.
Have a profitable week.
✌🏼
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.
✌🏼