Today's Revenue Management thought:-

Capturing the right data……

In today’s digital world, data availability is seldom a barrier, but the quality of data frequently is.

In order to generate the deeper insights that drive smarter pricing decisions, hotels need to be selective about the data they use, how they get it, and how they analyze it.

That doesn’t just mean using “data scrubbers” to clean it up, but developing a data sound structure, together with establishing processes and incentives to get the right data in the first place.

Hotels also need to look at data sources outside to highlight new opportunities in order to fine-tune their prices to covert to revenue.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Reducing risk and unlocking value.

Hotels should always seek to reduce the risk of loss by using revenue management strategies, this allows you to maximise your profits by setting prices that will generate the most revenue.

Pricing always involves risk and uncertainty. You make the best decision you can, but you can’t tell how it will play out until you put your price in front of customers and see how they react.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

You never know when opportunity will arise.

Yesterday I met by chance 2 individuals (in 2 different airports) that I have not seen in years.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Not all business is good business….. calculate properly before making your offer.

An ex colleague called recently. His new(ish) group reservation manager had taken in a film crew, who would occupy 50% of his capacity for 4 months (Sunday to Thursday). Sounds great… big problem…. he runs a property that lives on meetings & events, and the agreement made with the film people was extremely favourable.

This entails that he has roughly 50% of his capacity left in his main revenue season to generate upwards of 80% of his Total Revenues.

Do the maths, know you revenue flows, consult your colleagues, establish revenue meetings and strategies to avoid making costly mistakes.

This case can be saved - we have adjusted distribution strategies focused on reducing distribution costs, increased marketing activities on selling weekend packages, and started marketing smaller “exclusive” meeting packages.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

The reputation of your hotel is one of the main factors that influences its pricing ability.

Have a profitable week.

✌🏼

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.

✌🏼