Today's Revenue Management thought:-

A 100% rate parity strategy can prove effective in helping hotels maintain control over their prices, one can argue that it can lead to higher prices, decreased competition, and reduced customer choice.

Additionally, rate parity has been accused of creating a less competitive market, as hotels are discouraged from offering discounts to attract customers.

Some will also highlight that rate parity does not always benefit customers, as hotels may not always be able to provide the best deals when using rate parity. Furthermore, rate parity can be difficult to enforce and can create a complex pricing model that is difficult for customers to understand.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Rate parity is generally seen as beneficial for hotels, as it helps ensure that guests receive a fair price when booking through different channels, while also allowing hotels to maintain a consistent level of profitability.

Rate disparity, on the other hand, can often lead to price discrimination in which guests who book through certain channels are charged more for the same hotel room than those who book through other channels.

This can lead to confusion and frustration among guests, and can damage the reputation of a hotel.

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Today's Revenue Management thought:-

Hotel price dumping in hopes of stimulating sales often only leads to failure & more misery !

Hotel price dumping is not a successful pricing strategy in periods with low demand.

While this strategy can be successful during periods with high demand, it is not a successful pricing strategy in periods with low demand. This is because when there is low demand, customers are already expecting lower prices, so reducing prices further does not have a great impact on stimulating sales.

Additionally, if the price is too low, customers may be wary of the quality of the hotel and not be willing to book. This strategy can also lead to a decrease in customer loyalty as customers may wait for the next price dump and not be willing to pay regular prices.

Furthermore, it will lead to a decrease in revenue as hotels are not able to make up the difference in price with increased sales volume.

Finally, this strategy can lead to a decrease in profit margins as hotels are not able to fully recover their costs when they reduce prices.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Food for thought.

Do you consider your hotel rooms to be a commodity ?

Hotel rooms can be considered a commodity because they are readily available and can be purchased at a “standard rate”.

Hotel rooms typically have similar features, amenities, and services, making them a homogeneous product.

This makes them similar to other commodities, such as oil or wheat, that can be bought and sold on the open market.

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Today's Revenue Management thought:-

We constantly hear about Dynamic pricing, and many think this is the only step in maximising revenue opportunity - but is it really the only step ?

Dynamic pricing models are designed to maximise revenue.

However, they are not necessarily the most effective way to maximise revenue opportunities.

All hotels should also consider other pricing strategies such as segmentation pricing, loyalty pricing, and value-based pricing. These strategies can help hotels create value-based offers and create more attractive pricing options that will entice more guests to book.

Additionally, hotels should also consider factors such as seasonality and customer preferences when setting prices.

By taking these measures, hotels can maximise revenue opportunities and maximise customer satisfaction.

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Today's Revenue Management thought:-

Believe it or not, I have been asked twice in the last few weeks, “why do I need to test my pricing strategy ?”

Testing your pricing strategy is important to make sure that you are setting prices that are competitive and profitable.

Testing allows you to experiment and make adjustments to your strategy in order to maximize revenue and make sure that you are meeting the needs of your customers.

Additionally, testing your pricing strategy can help you identify potential weaknesses in your strategy and make changes that will improve the overall effectiveness of your pricing.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Complexity is the absolute enemy of running a successful accommodation business.

The simpler you can make your solutions, the easier it will be to manage and secure your customer information, price correctly & provide sublime service.

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Today's Revenue Management thought:-

Doubt, of whatever kind, can be ended by action alone.

When we act without worrying about what the outcome will be and instead focus on the action itself, we are able to cut through the doubt and find a tangible solution. By taking action, we can gain clarity and direction, which helps to alleviate doubt and replace it with confidence in the decisions we make.

Make a bold move & try.

Have a profitable week.

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Today's Revenue Management thought:-

GDS – Is it relevant for your hotel in 2023 ?

Yes, Global Distribution Systems (GDS - Sabre, Amadeus, Galileo or Worldspan) are still relevant in 2023.

In fact, the increasing use of technology and mobile applications to book travel is likely to make GDSs more relevant. GDSs also provide a secure, reliable platform for travel companies to manage their reservations, which is likely to remain important in 2023.

Remember to conduct your GDS Audit, and ensure available inventory and rates.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Why hotels need all revenue, not just lodging revenue

Hotels need all revenue, not just lodging revenue, in order to remain profitable.

Hotels not only generate income from guests staying in their rooms, but they also make money from food and beverage, event and meeting space rentals, spa services, and other amenities.

All of these revenue streams contribute to the overall profitability of your hotel, and without them you are not maximising your revenue potential.

You also need to consider your operating costs and expenses, and having multiple revenue streams helps to offset those costs and keep the business profitable.

Have a profitable week.

✌🏼