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:-
Doing fewer things better is how you achieve notable results.
Efficiency in Revenue Management can only be properly achieved with the help of the right tech stack.
It is physically & mentally impossible to process the amount of data needed to make the right decisions & execute them.
Exhaustion is not a status symbol.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Are you're tired of feeling behind your competition when it comes to pricing ?
You think they're making all the right pricing moves.
Stop and think - don't try to outdo their pricing.
Outdo your competitors on value for your customers. Excel in service & create a true value for your customers.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
People are determined to stay at certain properties and willing to pay a premium to do it.
The competition has the same products but these properties have positioned themselves as the option for people who want a unique experience.
In good and challenging times, positioning matters.
It’s not enough to simply depend on strong demand to fuel sales.
To outflank rivals, hotels must stand out from the crowd.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Last-minute cancellations and no-shows are inevitable; they are our nightmares.
Empty rooms always have a significant negative impact on the profit margin.
However, there’s always a fix.
Either you bear this revenue loss or find some other way to retain it.
However, most of the time, it is tough to replace such last-minute cancellations or no-shows with another reservation.
We all know that at the end of the day, it all boils down to implementing successful strategies.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Another cancellation ticks in……..
You should definitely be tracking your own cancellation rates and building your strategy with this in mind.
To successfully deal with cancellations, it’s important to know how many cancellations you’re likely to get and create a plan to deal with them.
How often do your guests cancel their bookings, how far in advance do they usually cancel, and why are they cancelling - are all questions you should be addressing.
Do you have an overbooking strategy in place for times you know you’re likely to get a lot of cancellations?
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Cancellations increase each year and have become one of the biggest problems faced by a hotel.
On-line bookings are increasingly popular as they simplify booking and make cancellations easy. This pushes the customer to book impulsively or pre-emptively, which has a negative effect on hotels.
One of the most common strategic errors hotels make, given this situation, is to assume a high level of cancellations and make decisions on that basis.
It is therefore important to implement strategies aimed at combating and preventing this kind of behaviour by customers.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Reservation cancellations have a substantial impact in revenue- management decisions.
Cancellations limit the production of accurate forecasts, a critical tool in terms of revenue management performance.
Implementing well thought out cancellation policies and overbooking strategies will help, without necessarily having a negative influence on revenue and reputation.
Have a profitable week.
✌🏼
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.
✌🏼