Today's Revenue Management thought:-

There’s more to pricing strategies than simply offering the lowest price to beat your competitors.

The right pricing strategy has to align with your business goals, whether these are to maximize profitability, ensure your business’ longevity, or grow your customer base.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

As revenue managers, we basically built pricing models that surgically identified what people wanted to pay us for and what they didn't want to pay us for.

One of the things we figured out early on was that we could create value for people by creating a price level that allowed them to experience something that they couldn't without us.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Don't fall into the irresponsible trap of setting low prices.

It will kill your business and reputation.

Low prices attract cheap customers with luxurious demands.

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Today's Revenue Management thought:-

The big picture or laser focus ?

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Today's Revenue Management thought:-

How do you know when the price is right ?

If customers believe that a price is unfair, their negative reaction can be devastating for business.

If customers believe that a price is fair, their purchases can limit your future revenue potential.

A catch 22 situation to find the perfect price.

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✌🏼

Today's Revenue Management thought:-

There is no victory at bargain basement prices.

Keep this in mind for challenging times.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

The Christmas holidays are unlike any time of the year.

As you prepare your hotel for the Christmas season, make sure you re-evaluate your pricing strategy.

The holiday season can be stressful for hotels that aren’t prepared to keep up with the high demand for promotions and intense competitive rivalry.

Don’t get distracted by the festivities, but stay focused.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Why is revenue forecasting important?

Mainly, because it shines a light on the state of your business moving forward. It helps you plan effectively, make strong decisions, and take your business to new heights – without fumbling in the dark. 

Most intriguing is that forecasting is driven by concrete information and actionable insights.

This takes your hotel’s future from wishlist to business plan. 

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

What’s the right pricing strategy for your property ?

Whether your hotel is located in a bustling city environment or nestled in the quiet countryside, establishing an effective hotel pricing strategy is vital for success.

• Demand-based pricing

• Rate parity pricing

• Occupancy-based pricing

• Optimised rate level utilisation

• Market segmentation pricing

• Day of week (DOW) pricing

• Competitive pricing

• Penetration pricing

• Discounted and promotional pricing

• Length of stay pricing

• Flex rate and semi-flex rate pricing

• Package pricing

What works for you does not necessarily work for your neighbour…. But how do you determine which is the right strategy to employ and when ?

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Remember... No matter how good your pricing is, the next transaction entails that you should restart your calculations to find the optimum.

Let’s just let this hang there for a while, and reflect.

Have a profitable week.

✌🏼