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:-
Escaping the numbers box !
Revenue managers are often comfortable toiling with their numbers and analysis and less comfortable in using that knowledge to actively challenge their business to think differently.
You can be the best number cruncher, but if you cannot communicate and implement your message and finds effectively, you will fail as a revenue manager.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Who runs the pricing show ?
Many revenue mangers are relegated to the role of providing reports - predominantly reactive (i.e., doing analysis, writing reports, creating forecasts, responding to data analysis questions) - to others, who in turn then make decisions regarding strategic pricing and allotment.
Others revenue managers are being viewed as the most knowledgeable person at the hotel with regards to what actions will improve performance of the hotel.
With full automated RMS’s becoming more widespread and commonplace, what is the future role of a Revenue Manager
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Tech Stack overkill !!
I’m seeing far more complex and honestly unnecessary tech connectivity.
Right now, many hotels have invested in systems that they do not fully exploit - for a number of reasons.
Systems overlapping each other & presenting the same data in a slightly different manner.
Less than optimal set-up.
Lack of sufficiently skilled staff
How well thought out is your tech structure, and are you gaining the full ROI on your investment(s).
Nice to have vs Need to have !
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Should we ditch Excel !!
It is not an effective tool to communicate and collaborate with other team members in order achieve your goals..
Excel does not deliver the dimensionality and interactivity you need to create revenue forecasting models.
When everyone on the forecasting team is working with a single version of the truth (which is not only the numbers), your data foundation will be more coherent, whichever revenue forecasting methods you choose.
Have a profitable week.
✌🏼
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.
✌🏼