Today's Revenue Management thought:-

Is your Property Management System (PMS) limiting your ability to execute your pricing strategies ?

Hoteliers often complain about their PMS systems because they are often outdated and don't meet their needs. However, they resist making the investment in a newer PMS.

Your current PMS may not be able to track key data points necessary for revenue management, such as customer segmentation, booking patterns, and average daily rates. This makes it difficult to implement a revenue management strategy that's tailored to your specific needs.

Additionally, your PMS may be unable to integrate with other third-party technology, such as a channel manager, which further limits your ability to optimise pricing and availability.

Finally, the PMS may lack features such as automated rate rules, which make it difficult to quickly and accurately adjust rates in response to changing market conditions.

All of these issues can lead to lower revenues and diminished profits for your hotel.

That said, an “antiquated” or “legacy” PMS can provide you with the fundamental data you need to implement pricing strategies - you might just have to restructure how you work with it.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Is the price right ?

It’s no secret that pricing has a direct impact on profitability and customer satisfaction. When it comes to setting prices for a hotel room and the properties auxiliary services, there are several different strategies that hotels can use.

No matter which pricing strategy a hotel chooses, it’s important to remember that pricing is an important part of any successful business. Setting prices that are too low can lead to lower profits, while setting prices that are too high can lead to lost customers.

At the end of the day, it’s important to find a balance between pricing and customer satisfaction.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

What are they trying to do ?

Revenue management will always require that human touch, and understanding…. but the systems we rely on can most definitely crunch trough the observed anomalies and provide guidance.

You’ve observed a radical change, and deduced what you competition is up to…. but how do you (or your systems) react to this, and is this the right move.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Scratching my head and pondering………

What are they trying to do? 

Whenever I see a hotel do something out of the ordinary with their pricing, I say to myself…… it’s worth thinking about.

With all the automation we have, do we notice these anomalies and extra ordinary pricing changes, and do we have time to ponder…. what’s going on & why ?

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Do revenue managers create value or create revenue ?

Revenue managers create value by optimizing the revenue earned from a given set of resources. This is done by analyzing customer demand, setting prices and inventory levels, and making strategic decisions that maximize the revenue generated.

Revenue managers also create revenue by leveraging data-driven insights to drive sales, marketing and pricing decisions.

Have a profitable week.

✌🏼

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.

✌🏼