Today's Revenue Management thought:-

A short reminder on the best practices in hotel pricing.

1. Monitor the competition: Monitor your competition's pricing and adjust your rates accordingly. This will help you remain competitive and attract more customers.

2. Consider the season: Consider the season when setting your prices. During peak season, you can charge a premium rate. During slow season, you may want to offer discounts to attract more customers.

3. Differentiate your offerings: Differentiate your offerings and charge different prices for different types of amenities. This will allow you to capture more of the market.

4. Focus on value: Focus on providing value to your guests and making sure they are getting a great experience. This will help you establish a good brand reputation and attract more customers.

5. Use data to inform decisions: Gather data and use it to inform your pricing decisions. Analyze market trends, customer feedback, and occupancy rates to determine the best prices for your hotel.

6. Use dynamic pricing: Consider using dynamic pricing to adjust your prices in real-time. This will help you maximize your revenue and capture more of the market.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

"We face danger whenever information growth outpaces our understanding of how to process it,” - The Signal and The Noise by Nate Silver.

This is the dilemma we face with benchmarking - so much data is available, from a multitude of diverse sources, entailing that it can be challenging to know where to start.

In addition, given that some of the data collected is unreliable and incompatible with other data, it can actually be next to useless. 

Without understanding what drives the performance that we can see, we will risk blindly assuming that future performance can be predicted based on past outcomes. 

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Benchmarking is one of several components of the performance measurement picture, not the complete picture of the truth, as many tend to think.

To really understand and improve performance you need a combination of :-

- benchmarks

- forward-looking KPI's

- budget targets

- clear strategic goals

- initiatives that deliver change

Once in place you can interpret the data to better understand and predict performance, and use that information to plan projects, pricing initiatives and changes that will improve future performance.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Why are we still using 2019 as a benchmark ?

It’s after all 3 years ago…. That’s 1096 days ! ( 3* 365 days + 1 extra day as 2020 was a leap year with 366 days).

Few of us refer to the 1970 - 71 tourism boom before the great travel crash with the 1972 - 73 oil crisis.

The dynamics of 2019 or 1970 bear relatively little relevance for our future. We can reference them yes, but the dynamics of 2023 or 2024 for that matter have moved beyond 2019.

I guess we all like to reminisce about the good times - we do too often forget that Revenue Management is about cementing the good times that others can refer to in the future. 

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

A curious & creative line of thought will always help you to identify new revenue opportunities.

Use your pricing strategies proactively & start testing the limits.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

If you are not willing to risk the unusual, you will have to settle for the ordinary.

Use your pricing strategies commercially & start testing the limits.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Admit it - you may have made one or two pricing errors during your esteemed pricing career !

Automated pricing tools have helped us get around mistakes made through manual input. Being on top of your numbers will also entail that you quickly identify & rectify these errors.

We all make mistakes, it's just that some are more costly than others.  If you've made pricing mistakes, learn from the experience.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

When was the last time you tested your Pricing Strategy ?

• How do you know if your pricing strategy is working ? 

• How do you know if the prices you have set are the best prices for your rooms or services ? 

• When was the last time you made changes to your pricing strategy to test if that made a difference to your overall profitability or revenues ?

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

A-B-C: Always Be Changing Your Pricing

If you are not constantly reviewing and updating your prices you could be missing out.

Automated pricing technology allows you to change prices frequently, minute-by-minute if required. 

To remain successful you will need to focus on the profitability of every room you sell almost on a daily basis, which is done by reviewing and testing prices.

In addition you will always need to be aware of what the markets "perceived price” is, how your company and product are perceived – and what your competitors are charging.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Pricing is something that every revenue manager loses sleep over at one point or another. 

Setting a price is an important decision with serious ramifications. Set the price too high and you risk losing customers. Set the price too low and you could devalue your products and damage the bottom line.

Many just keep doing whatever they have always done, for better or worse. They do this because they fear they will — as they’ve been told a thousand times — price themselves out of the market.

Forget the market….. it does not care about your bottom line.

One of the most visible side effects of poor pricing is the impacted bottom line. Whether you go too high or too low, it’s likely that you’ll feel some sort of influence. 

Have a profitable week.

✌🏼