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:-
Your inventory cannot be stored for later use.
Don’t be afraid to oversell, in a controlled manner. I am not recommending this for a small-sized property. But if you’re part of a pretty big hotel network, take a chance. It will definitely mitigate the consequences of last minute cancellations and no-shows.
The timing of this decision, as well as market knowledge is crucial. It’s better to adopt this strategy at the time of high demand or during peak season.
Have a backup plan, just in case. Shifting a guest to a similar property at the time of check-in could be one way to handle the situation.
Not earning money is losing money - Have a profitable week.
✌🏼
Today's Revenue Management thought:-
“Sorry, no time to make more money !”
So many hotel’s are understaffed, yet they are deferring the decision process’s which can help them optimise and increase revenues.
- Outsourcing functions like Revenue Management
- Implementing automated systems
- Re-evaluating Standard Operation Procedures
What will it take to convince hoteliers ? How long can you continue to live with “lost opportunity” ?
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
There’s a time to analyze and a time to act.
In challenging times, sometimes you just to make a decision and move forward.
Momentum is a powerful ally in an uphill battle - especially in an environment where conditions change frequently.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Success does not come from what you do occasionally.
It comes from what you do consistently.
Are you still asking your colleagues WTF (What’s the forecast) ?
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
The Revenue Management environment is chaotic, stressful, noisy, stakeholders coming at you from all angles, too many orders, not enough time, and so on.
"When you hear lots of things, you may shorten your focus. And a short focus is not conducive to long profits." - Warren Buffett
In this world full of noise, focus is the key to do what's right.
Have a profitable week.
✌🏼
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.
✌🏼