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:-
Over a decade later & the truth still holds solid ground.
Warren Buffett said this about pricing power in a 2010 interview:
“The single most important decision in evaluating a business is pricing power. If you’ve got the power to raise prices without losing business to a competitor, you’ve got a very good business. And if you have to have a prayer session before raising the price by 10 percent, then you’ve got a terrible business.”
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
In the wake of an impending recession, Revenue Managers cannot use a crystal ball to predict a probable collapse.
However, due to market turbulence and the potential for instability, it is advised that the key to minimizing threats in a recession is to be proactive rather than reactive during an economic downturn.
So look deep into the future & find opportunity for your property(ies)
Be flexible with existing customers
Don’t reduce pricing
Protect available cash
Evaluate non-essential expenses
Accept short term thinking
Re-evaluate everything
Innovate – Look for opportunities everywhere
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
All hotels want to generate more sales, and this is why we invest in tools and strategies to achieve such a goal.
There are however a few common mistakes we all make in forecasting
Basing our business decisions on gut feeling
Basing our decisions on limited or conflicting data
Failing to be flexible
That said, it’s still important to recognise that a sales forecast can’t accurately predict the future. But avoiding the mistakes, as well as applying best practices will help you boost confidence in your predictions, helping you avoid disappointment if reality and your forecast don’t meet.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Asking for help is the scariest thing to do for many people. It can feel uncomfortable and embarrassing.
Mainly, it sprouts from the fear of judgement and relationship dynamic changes.
Even if you're an expert at what you do, accepting help from others is key to achieving success
When you allow others to help you, you strengthen your relationships with them and create opportunities for you & your business to grow.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Information comes to you from left, right and center in a constant flow.
There are price monitoring reports, performance analytics, price recommendations, constantly bombarding your inbox.
Automated pricing systems spit out rate change suggestions.
Do we really need to constantly react to all this information.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
A strategy is something you draw up on a piece of paper.
Anyone can do it, even if it has not been tried before.
The difficulty is convincing your team and transforming, implementing & executing the strategy into actual operations to generating the intended results.
Today's Revenue Management thought:-
A major challenge facing many hospitality business is the inability to provide reliable revenue forecasts for planning and budgeting purposes.
Accurate revenue forecasts are a key element for the design and execution of sound operational & sales strategies.
Forecast errors can lead to substantial budget management problems. While forecast errors can never be entirely avoided, budget revenue estimates systematically deviating from actual revenue will challenge your trustworthiness as a Revenue Manager.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Amongst the biggest challenges facing hospitality today are:-
- growing revenue
- hiring employees
- increasing bottom line profit
Challenge is necessary for business survival, but knowing the right solutions to use in order to solve challenge effectively and appropriately is also important.
Challenge your organisation with different ideas and points of view, but also be prepared to be counter challenged for your views & ideas.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
It is so easy to follow the crowd.
Understand the in’s and out’s of your hotel, why & where are we different from our competition.
Create thoughtful pricing strategies so that you can price correctly & don’t have to follow the crowd.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
It is so easy to blame price for the loss of sales volume.
That is not really the only issue.
Marketing and brand promises that do not live up to the promise, create situations where consumers try your product and it failed, so they will not come back or stay again. In addition they let the world know with a scathing review.
Create truthful messaging & concepts so that you can price correctly.
Have a profitable week.
✌🏼