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:-
Choosing the right KPI’s !
Most discussions on revenue KPI’s focus on RevPAR, ADR & OCC.
RevPAR and ADR are good performance indicators when it comes to understanding revenue. That said, they are not enough to depict the full financial reality of a hotel.
It’s not a matter of RevPAR versus ADR, but rather, a change in the entire evaluation process.
Technology has made great improvements in how we collect and process data, and it’s time for us to take advantage of more complex indicators, such as GOPPAR, and incorporate them into our tracking and benchmarking efforts !
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Finally Friday !
There is so much information out there.
Is your role and associated work processes fully understood ?
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Choosing the right numbers !
There is so much information out there.
Many properties are still using manual processes to create forecasts of demand and supply for inventory, prices, lengths of stay and more. This is time-consuming and prone to error.
How do you best filter all this information and how do you decide what to focus on to maximise and optimise your properties performance ?
Have a profitable week.
✌🏼
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.
✌🏼