Today's Revenue Management thought:-

Cost of acquisition ….

Following up on yesterdays post - a number of individuals contacted me to clarify acquisition costs, as they were of the opinion that these were solely commissions.

We may be putting out that same rates on different channels, but all rates are not created equal, as there are different costs associated with each “sale”.

Commissions are one of many cost associated with acquiring a paying guest. Amongst the other costs that can be considered are:-

• Website & booking engine maintenance & subscription fees

• Advertising - some will argue that this is a marketing cost, and should not weigh on the actual incoming reservations

• GDS transaction fees

• Last Minute Discounted rate, as opposed to BAR rate

• OTAs also give you the option of spending more to get higher visibility (ex. offering membership discounts or country specific discounts) and a host of other options that can confuse you.

In addition cost of may vary from property to property & you may be paying more than your competitor down the street to acquire a reservation from a specific source, simply because that other hotel negotiated better terms. This makes comparison even more challenging.

At the end of the day, you should always have a reasonably clear view on what it costs to generate a reservation (even walk-ins).

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Monday morning blues….

Reservations have poured in, which is great news…. but when you dive in deeper and realise that the vast majority have come from OTA’s, the alarm bells start to ring. What will this cost me in commissions ?

Would your property have been better of getting these reservations directly ? More than likely will the vast majority state… but what are the true costs of acquiring a reservation directly, and would you have gotten it at all !

Do you truly manage and understand your acquisition costs ?

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Is gut feeling a better indicator than data ?

Sometimes my day is just like this……..

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Consumers have a different perception of how hotels set their prices, than what actually happens.

“Bargain hunters often say hotel prices go down at night.”

“The best day of the week to book your hotel at the lowest rate is Monday for domestic travel and Tuesday for international travel according to Expedia.”

“Hotels go down in price closer to the date only when there is inventory available.”

Do you consider consumer price perception & behaviour when setting your prices ?

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

First day of business after a long break.

It’s always extremely interesting to observe sales on the first day of business after a long break.

Some properties experience a massive sales boost from the start of business, others are slower out of the box.

Some experience many bookings for the immediate future - mainly corporate related, whilst others see a large number of reservations for future holiday dates.

How does your property perform on such a day ?

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Back in business after a 5 day Easter break.

With 10 weeks until the summer holidays start, we have 10 weeks where we have opportunity to shine as revenue management experts. 

Historically the months of May & June tend to be busy for most major destinations, with high demand from all segments (Business, Leisure & Group / Convention.

Please remember to ensure your distribution strategies are in place, and that your pricing startegies are top tuned. Re-evaluate your demand forecasts and have a deep look into what you competitors are doing. Cross check with operational departments that they are clear about upselling & upgrading opportunities. Identify opportunities where you can “package” your properties services to increase overall revenues.

How do you intend to shine, are there any tips you want to share?

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

So we’re off for the next 5 days………

A lot can happen during these days…. Revenue never sleeps.

How do you run the show during these days ?

Have a profitable EASTER.

✌🏼

Today's Revenue Management thought:-

Discounting on the GDS……a little effort can lead to amazing results.

I have noted that many properties go all in when discounting on the OTA’s, but totally disregard offering similar discounts on the GDS systems. The ease of setting up advantageous rates on the OTA’s is more than likely the reason herefore.

However friends, don’t under estimate what you can gain by being active on all your distribution channels.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

It’s a short work week……

Despite many taking advantage of the short work week, by taking time off, there is opportunity to be had for the save Revenue Manager.

Position your hotel(s) prices advantageously and ensure you have the necessary availability to fill requests for the coming holiday season. Even if you are running close to full, ensure that those last rooms get occupied.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Not all revenue seeker’s have the same methodology.

Have a profitable week.

✌🏼