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:-
Inflation is here. It’s time to understand the macro economic factors.
No one is sure exactly where business is going to go, so do your utmost to be on top of things.
You should keep a close eye on the world around you — while still focusing on what you can do better with your businesses today.
Loosing a lot of sleep over macroeconomic issues will not resolve much, but I like to think that taking a proactive approach in trying to understand what is happening around us in the macro environment will enable you to respond quickly.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Inflation is here. It’s time to think creatively.
If you want to sell your hotel rooms you need to do more than display them and expect customers to buy.
If you want to succeed you need to convince your customers.
At the end of the day, booking a room is like a relationship: you don’t need to be the best looking hotel, but you definitely need to be the one that makes each customer feel that you are the best possible match for one night or more.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Inflation is here. It’s time to raise prices.
Willingness to pay drives pricing.
Without a doubt inflation increases your costs.
However, it also increases your customers’ willingness to pay. Not that they want to pay more, but right now they almost expect to.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
What happens with pricing when the dust settles ? Some might say there is too much dust for it to settle !
Many of us are thinking about “survival”, is anyone beyond that ?
It might be useful to already think ahead and start planning your future pricing strategies and tactics when all the dust is settled in the future and inflation is back to normal.
Are you aiming to restore prices to the level they were before or does this era provide an opportunity in the future to increase profitability and compete on another level for some categories?
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
What Happens to Pricing When Demand Falls ?
We need to think about managing pricing strategies as we deal with high inflation and brace for the possibility of a recession.
Keeping the below in mind will help you navigate difficult economic conditions.
Plan for all scenarios
Know your KPI’s backwards and forward
Ensure pricing transparency
Increase your pricing agility
Understand your customer segments and know your properties value
Take a surgical approach to price increases
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Pricing in uncertain times
As pricing experts, we are expected to make accurate decisions with imperfect information.
What steps can we take to reduce uncertainty, and risk ?
How do we "illuminate" the landscape and cast light on the unforeseen ?
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Timing Your Pricing Actions.
The timing of your pricing actions can influence how those actions are perceived and received - not only by the market, but also by your organisation.
Get the timing right and you probably won't have much of a fight. On the other hand, get the timing wrong and your actions may produce much more pain than gain.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
A provocating thought - Revenue management is nothing more than 50% pricing and 50% inventory management !
Together, they make up what I consider to be revenue management.
Pricing is one side of the coin, and on the flip side inventory management.
Is there a difference between Pricing and Revenue Management ?
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
When someone asks what I have done in the past …
Have a profitable week.
✌🏼
