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:-
“The most reliable way to forecast the future is to try to understand the present.” - John Naisbitt
Let’s just let this hang there for a while, and reflect.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Plans are only good intentions…...
Put them in action and see them come to life.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Dare to be different !
Why do you want to compete with other hotels on a level playing field and have the same chances of winning as the next hotel ?
If you’re looking for your rate startegies to succeed, you need to tilt the odds in your favour - there's a simple way to do just this - by doing your homework and being prepared !
Find that winning formula.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Choosing the right KPI’s !
Revenue is an essential department, but its function is meaningless without metrics that guide the team in the right direction.
EBITDA of a hotel, should be another key metric in revenue management.
So, what is it for and what does EBITDA tell us?
The main quantitative information provided by this metric is profitability in order to meet debts and interest - it measures the value available to pay fixed expenses.
This is a key metric and one which a revenue manager should pay great attention to, enabling forecasting of the properties economic growth trends.
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Choosing the right KPI’s !
Distribution costs have a big impact on profitability. Do you measure them ?
Net RevPAR !
This KPI will define the impact of distribution costs such as commission, credit card costs, reservation transaction costs, etc.
To get this accurate you will need to ensure that your PMS is able to associate these costs with each reservation, and you will need to establish a cost structure for your direct offline reservation (telephone, e-mail, etc.)
Have a profitable week.
✌🏼
Today's Revenue Management thought:-
Choosing the right KPI’s !
Benchmarking - the practice of comparing performance to your competition, is key to understanding your hotel’s performance.
Which KPI’s deliver the most valuable information in your decision making ?
Which KPI's are needed for Benchmarking & Management purposes ?
Have a profitable week.
✌🏼
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.
✌🏼