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:-
ADR as a KPI…..
Using averages as a foundation to make future predictions might be leaving a lot of relevant information on the table.
This is not to saying that averaging is not useful. It’s simply a tool for a specific task, namely noise reduction, and it should be used for that task only.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
“The greatest enemy of knowledge is not ignorance, it is the illusion of knowledge”
I’ve personally stopped making forecasts. Instead, I just tell people what’s going on today and what I see as the possible implications for the future.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Forecasting looks at how tendencies in the present signal possible changes in direction thereby identifying a full range of possibilities.
That doesn’t mean you must learn algebra to become a forecasting expert.
It is an exercise of using your own common sense to properly identify the opportunities and risks forecasts present.
At the end of the day, forecasting is nothing more (or less) than the systematic and disciplined application of common sense.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
It’s Friday & time to reflect.
Here is one of my favourite quotes.
“ Forget the past ! ” - Nelson Mandela
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Prices can be easily changed and easily matched by your competitors.
Consequently, the prices of your rooms alone might not provide your hotel with a sustainable competitive advantage.
Nonetheless, prices can attract consumers. So get your pricing right !
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Many hotels widely consider pricing to be a tactical lever that starts and ends with setting prices.
Others get stuck when it comes to investing in the necessary skills and tools.
The result ?
Value is left on the table and price wars can ensue – not because hotels have lost control of pricing, but because they never controlled it in the first place.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
What you charge today has nothing to do with yesterday or tomorrow.
It has to do with now !
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Pricing has nothing to do with quality, skill, supply or demand.
It has to do with marketing and with what clients perceive to be value.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Predictably irrational.
Have you ever thought about why our aversion to loss is such a strong emotion, but also leads us to make bad decisions. We often focus on what we “may” lose rather than what we “may” gain.
Many of our pricing actions are highly predictable, based on past experiences, achievements, etc., but are at the same time commercially irrational.
Holding fort and trying to sell a room for €200 is irrational when the market’s going rate is €150. So we think we lose €50 if the sale is made…. but in fact we are losing €200 if the sale is not made, but gaining €150 if it is made.
Predicting the “if” in the sales equation is the hard part.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Your most expensive room is the room you are yet to sell !
Why do many hotels refuse to adjust prices when there are a large number of vacant rooms that have not been sold ?
Last minute rates or discounts need to be calculated carefully and clear strategies established as to how and when to use them.
Have a profitable week.
✌🏼