Today's Revenue Management thought:-

Mind boggling……..Deriving price by looking into the consumer’s mind….. if only it was that easy & we did not have several million potential customers.

Pricing has the task of increasing the probability that a customer will decide in favor of an offer at a certain price. Pricing therefore always aims to influence decision-making behavior. Good pricing should therefore always be based on an understanding of the customer’s decision-making process.

Pricing must therefore take into account the customer's needs, preferences and subjective perception of value. Pricing should also be adjusted to the current market situation, competition and the customer's buying power. Pricing should also factor in the costs associated with producing, selling and delivering a product or service

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Revenue, Sales, Marketing…….

It’s impossible to make revenue progress without aligning the forces of Sales, Marketing & Revenue.

But how do we highlight value over discounts.

Discounting is great for certain consumer products.

Highlighting value is what hospitality all about… from the humble B&B to Burj-al-Arab

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Sticking to your lane…..

All too often, we do encounter good old Harry / Harriet, following all the rules and moving forward at a steady pace. Young gun Carl / Caroline jumps into the drivers seat, wheel spins out of the starting gate, switching lanes, with a heavy lead foot on the pedal……no particular direction in mind, as long we’re moving fast and flashing the goods, eventually burning all the gas in the tank & coming to an abrupt halt.

We all know that when driving, you speed up, slow down and change lanes. As a a revenue specialist, you also need to change lanes, slow down or speed up, but for the sake of god (and your business) do this in a controlled manner, and not erratically.

And finally, determine where you want to go before you start.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Bridging the gap…..

Yes we are competitors, but by sharing knowledge, exchanging information, ideas, and experiences between revenue management professionals will enhance and optimise performance, improve processes, and increase profits.

We can be more open about sharing best practices, case studies, tips and tricks, and data analysis. Knowledge sharing can help us identify areas of improvement, set goals, and develop strategies with the single goal of lifting the standards of pricing within our industry.

Knowledge sharing will also help bridge the gap between theory and practice, allowing revenue management professionals to gain a deeper understanding of their field and develop more effective strategies.

By sharing knowledge, revenue managers can stay informed, stay ahead of the competition, and increase their effectiveness.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

I saw a multitude of systems and fantastic programmes on offer at the ITB.

It actually led me to think - why teaching revenue managemnt is essential.

Yes, systems help us to a great degree…… but do those who use the system fully understand the tools and the task.

Teaching & discussing revenue management is essential in that it helps us maximise profits and understand the importance of pricing strategies, as well as the varied lines of thought on the subject. It also helps us understand how to optimise our pricing strategies in order to make the most of the resources we have. This knowledge, enables us to adjust our pricing strategies to capture the maximum amount of revenue.

Furthermore, teaching revenue management also helps us develop a better understanding of the different aspects of our customers and how to best target our offers and promotions. This knowledge helps us better meet customer needs and create more successful marketing campaigns.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

It was fantastic to be at the ITB - to meet up with “lost” colleagues & find new contacts.

In addition there was so much inspiration to be had, and it was great to see what was developing on the tech side of hospitality.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Seeking inspiration at ITB……..No post this morning

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Is your price right ?

It really depends on who is looking at the price. 

You have set this price based on a number of determinants - occupancy, costs, market activity, etc. - and consider this to be your value proposition.

Do your guests or potential guests share your opinion on the value proposition ?

The key is putting yourself in your buyers' minds and determining what they will think is fair.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

A new client contacted me to consult on the following - Should OTA's be the ones controlling the payment side of reservations made on their sites ?

There is no right or wrong answer to this, as allot depends on the set-up of your operations and administration.

My initial thoughts on the issue is - No, OTAs should not be the ones controlling the payment side of reservations. This should be managed by the hotel . OTAs should be responsible for providing customers with the ability to book reservations, while the payment side should be handled by the hotel.

On the other hand - Yes, there are advantages to allowing OTAs to control the payment side of reservations. OTAs typically have sophisticated payment systems that can help streamline the booking process, reducing the time and effort of hotel staff. This can also help reduce administrative costs and fraud risks, as well as make it easier for customers to pay for their reservations. Furthermore, OTAs may offer customers additional payment options and benefits, such as loyalty programs and discounts, which can help to attract more customers.

So while many hotels are still playing tech catch up….. we again see our efforts being outsmarted by our suppliers.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

€89…€99 or €109…….

What goes through my mind when I evaluate prices.

When setting prices, I think about the the properties cost structure, the demand trends for the property, the competition, and what we want to achieve in terms of profit.

I also consider the value that customers get from booking a room and how it compares to similar products in the market.

Finally, I think about the marketing strategies we need to use to promote the property, and how pricing will impact those strategies.

Have a profitable week.

✌🏼