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:-
Rolling forecasting evaluate performance against KPI’s on a continual basis throughout the year.
Allowing you to create a more realistic picture of the short and medium term future, as it allows for a more accurate assessment of conditions and likely outcomes.
Rolling forecasting will allow your teams to make more timely adjustments in the face of developing circumstances. Something that’s almost a necessity in an age of unprecedented uncertainty, and in which a once-yearly plan simply can’t account for the changes that may occur.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Update your forecast frequently.
The revenue forecast you create at the beginning of the year shouldn't be abandoned to gather dust.
You should adjust your revenue forecast as circumstances change.
The most crucial thing is to avoid treating your revenue forecast as a static record. It can be a helpful tool for progress if you frequently monitor and analyse it.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
There is no flawless forecast. It's impossible to anticipate precisely how much revenue you'll have in three months, let alone 1-2 years from now.
Anything could happen between now and three months from now.
Revenue projections aren't intended to be accurate future forecasts.
They're designed to provide you with direction so you can decide more wisely.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
It’s the last friday of the month, and your GM casually passes by your desk, before you even get your first cup of coffee.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Inflation is here. How do your target audience(s) view this ?
Women and men shop differently and have different perceptions of prices and inflation. A recent study conducted by the ECB showed that “Women tend to have higher inflation expectations than men”.
How do you convert this information into your pricing & marketing to stay ahead of the competition ?
Have a profitable week.
✌🏼
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.
✌🏼