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:-
Progress is not uniformed, and the path is in never the same.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Will technology help reduce the impacts of rising inflation ?
There is a highly unpredictable & volatile future ahead, now might be the time for hoteliers to seriously consider revenue management solutions and leverage their capabilities to:
Optimise hotels' pricing power & adjust room rates to reflect labour and productivity expenses
Review and adapt pricing to maximise the length of stay & day of week trends
Examine the total revenue potential of group bookings versus short-term guests willing to book higher room rates plus ancillary spending earlier in the booking window
Review & control the buying down options on booking channels, especially when approaching a 30-90 day booking window
Optimise earnings by increasing rates for upgrading rooms at the time of purchase or upselling at check-in
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Inflation affects most of your competitors in similar ways.
However, they will not all react in the same way, nor will their actions have predictable effects.
Your competitors’ changing of prices is one of the most important factors to bear in mind when pricing; consumers will decide between you and the next best offer.
As competitor prices changes become more frequent and more pronounced the new situation with new opportunities needs to be understood quickly.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
The current economic climate & associated pricing management pressures present challenges not seen in decades.
Many revenue managers and pricing teams have likely never experienced such conditions.
However, with foresight and careful planning, hotels can manage pricing margins effectively, responsibly, and profitably. Determining how and where opportunities exist to pass-through rate increases and this can help companies control inflation, drive growth over time, & remain profitable.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Anticipated demand is one of the biggest insights you can leverage to help determine your prices.
Essentially, it means constantly re-evaluating demand for accommodation and pricing your rates accordingly.
We all know that to forecast accurately, you need to keep accurate historical data around occupancy rates, revenue and guest spend.
But what about the influence of massive inflation - not many RM’s have faced this challenge previously, and global macro economic numbers are laying the foundations for future forecasting.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Holidays over - now it’s back to business.
The earlier you start your forecasting & budgetting for 2023, the more time and flexibility you have to amend and adjust your.
Cash in on the good times & better prepare yourself for slower periods.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
🌈 All the colours of the world 🌈
Corporate involvement in #Pride is controversial, with many businesses being accused of ‘being there for the party, and not for the fight’.
This Saturday marks the culmination of Copenhagen Pride, one of many events around the world celebrating LGBTQ+ communities and raising awareness of key issues. There are however questions around corporate participation in Pride, and whether it is done entirely for the right reason.
We all know that at the end of the day, it all boils down to implementing successful strategies.
Is hospitality truly supporting #Pride for the “party or the fight” ?
Have a profitable week.
✌🏼
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Today's Revenue Management thought:-
Two basic factors drive hospitality pricing: Segmentation & Uniqueness.
Access to customer information provides opportunity to understand emotions, understand how the customer felt with the experience and what sentiments were felt by the customer. A major source to success for hotels is to understand consumer’s needs and wants in order to price correctly.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
User-generated content on social media, and particularly online reviews, is undoubtably a valuable source of data for RM.
The relationship between online review attributes and hotel KPI’s - in particular RevPAR - and the effect on likelihood to book should not be underestimated, as it provides key insight into optimising your pricing strategy.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Social Media reviews are impacting channel conversion & loyalty.
While some loyalists will stay true to a brand - weighed with a loyalty card in their wallet - casual preferred brand travellers will begin to weigh social media versus brand loyalty and factor price even more as part of their decision criteria.
One can see the almost instantaneous effect of a bad review, with an immediate dip in conversion, which then affects booking windows and channel-shift strategies.
Social media is a constantly evolving platform to engage with travelers. Hotels that connect that engagement to revenue management strategies and find ways to incorporate this intelligence into their day-to-day revenue plans will lead their competitive sets and ultimately find themselves ahead on the bottom line.
Have a profitable week.
✌🏼