Today's Revenue Management thought:-

How much will guests pay for your rooms and services, and how do you decide what to charge ?

Keeping track of price sensitivity is vital as it allows you to understand the impact an increase or decrease in price will have, and how to time any pricing changes you have planned to best take advantage of the current mood among your potential guests.

Pricing strategy and revenue management is all about understanding and acting on these elasticity changes before your competition does.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

As consumers continue to trade down in the face of challenging economic times, pricing will figure prominently in the strategic discussions of marketers.

It remains critical that hotels gain a nuanced understanding of the motivations that drive price-sensitive purchases in specific markets, categories, and circumstances.

Such knowledge can be the key to winning in a market—by being both price competitive and profitable.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

The “Rack Rate” is & has been under threat.

Instant access to price information has fundamentally changed how customers perceive value and judge prices.

It is inevitable that this disruption will diminish the role of the “Rack Rate”.

That said, the “Rack Rate” can still play an important role in an optimized price communications mix.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

How do I squeeze more revenue out of my product ?

It’s not as easy as illustrated, but don’t let yourself get stuck - a little creativity can add additional value.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Business is slowing down…..and will be challenging for the coming months.

I even posted the following yesterday ”The light at the end of the tunnel has been turned off 😎”

One thing hoteliers want to avoid is price wars.

Tighter control over discounts will be necessary to maintain price levels. Avoiding unnecessary discounts, revenue managers should strive to innovate their discount structures by offering upsell, cross-sell, or free services instead of using pure discounting as an incentive.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Charging fair prices, not maximum prices, optimises profits over time.

While there is no standard answer to the above opinion, revenue managers can however embrace market transparency, understand what drives the perceptions of fairness in their market, and ensure that they offer prices that customers will perceive as fair.

With the right understanding and the right approach, hotels can vary prices in ways that mutually benefit themselves and customers, and perhaps society as well.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Success does not come from what you do occasionally.

It comes from what you do consistently.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

It’s that time of year again……..are holiday promotions really worth the effort ?

• Promoting during the holiday season is a waste of time !

• Promoting during the holiday season is essential !

Are we just going through the motions for the sake of satisfying the top brass or is really worth the effort ?

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Pricing you product correctly, “merely” requires some thought.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Every market has poorly-run hotels (branded as well as non-branded) who have substandard results.

Resist the temptation to sell at their price.

Instead study where the high performing hotels are pricing and benchmark your efforts to follow their lead.

Have a profitable week.

✌🏼