Today's Revenue Management thought:-

Use Booking Patterns to Shape Your Forecast.

By using booking patterns to shape a forecast, we can create more accurate projections and adjust budgets accordingly.

A more detailed analysis of booking patterns can help identify areas of opportunity to maximize profits and identify any potential risks that could affect your hotel’s performance. Utilising advanced analytics and reporting, we can better understand our booking patterns and use this data proactively.

So when we start rolling out next years budgets getting through the piles of work assessing the upcoming year’s goals, threats and opportunities , calculating a final prediction of revenues and expenses for each operational department becomes allot easier.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

May 1st - International Workers day…..

For some a holiday & for others a normal working day.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Many of us think that revenue management strategies are a new phenomenon.

Here’s a 1904 cartoon from The Tacoma Times warning attendees of the 1904 St. Louis World's Fair of the probability that St. Louis residents will gouge them.

The cartoonist depicts people renting "hotel rooms" that are literally shelves.

The bottom shelf is $1 (in 1904 money), the top shelf is $3, and the adjacent wall hooks are $0.50.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Clear & Concise = Conversion

The manner with which hotels communicate in general & particularly on their websites can have a major impact on the perceived value and willingness to make a reservation.

In order to ensure clear and concise communication, focus should be directed on using simple language, providing detailed yet easy to understand product descriptions, and providing accurate and up-to-date information.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Ethics & pricing….. 10 key questions to ask yourself.

1. Is it ethical to set prices based on a customer’s ability to pay ?

2. Is it ethical to engage in price gouging during times of high demand ?

3. Is it ethical to offer discounts to certain customers or groups of customers ?

4. Is it ethical to have different prices for different versions of the same product ?

5. Is it ethical to use pricing as a way to manipulate demand ?

6. Is it ethical to use pricing to foster loyalty among customers ?

7. Is it ethical to use pricing to limit competition ?

8. Is it ethical to use pricing to create barriers to entry for new competitors ?

9. Is it ethical to set pricing based on perceived value rather than the cost of production ?

10. Is it ethical to use pricing to differentiate between customers?

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Customer value perception…..

Fluctuating value perception from customers can affect your ability ability to price rooms correctly.

Customers' perceptions of value can change based on their personal preferences, the market, and other factors, making it difficult for Revenue Managers to accurately gauge the value of their product or service and set an appropriate price.

Revenue Managers must therefore pay close attention to changing customer perceptions in order to ensure that their prices remain competitive and attractive to potential customers.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Someone recently ask me if you can create & retain value for your hotel with limited staffing.

Thinking out of the traditional “hotel mind set box”, the only answer is - Yes, it is possible to create value for a hotel with limited staffing.

Remaining focused & creating a welcoming and inviting atmosphere for guests, even with limited staff is essential.

Additionally, utilising technology to streamline processes, and automation of certain processes can reduce the need for manual labor and enable your property to deliver a better experience to guests.

Finally, focus on creating a memorable experience for your guests through unique experiences, such as art installations or special events. By creating a memorable experience, your hotel can create a positive lasting impression for guests, creating positive reviews and generating repeat business.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

CAC …… continued & summed

Every step of the way there is an associated cost….

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✌🏼

Today's Revenue Management thought:-

Cost of acquisition ….CAC

Unfortunately, most hotels have very little insight or interest for their CAC.

By monitoring CAC as a KPI, hotels can better understand how it varies and make smarter decisions in an attempt to steer these costs downwards.

Experimenting with different marketing strategies, changing pricing strategies, and finding more cost-effective channels to acquire customers.

Monitoring CAC also helps identify areas where cost savings can be made and highlight areas to be more efficient in the use of resources.

By not maintaining an watchful eye on CAC you will see long-term profits deteriorate over time as CAC tend to increase faster than the total revenue..

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Cost of acquisition ….

We as an industry need to reduce guest acquisition costs in order to remain competitive and profitable.

The advent of OTA’s and the increasing use of mobile booking apps, guests have more options than ever to compare prices and choose the best deal.

We need to be able to offer competitive prices and value-added incentives in order to attract and retain guests.

By reducing our guest acquisition costs, we can lower our prices and offer more attractive packages to potential customers. Reducing acquisition costs also allows us to reinvest in other areas such as automated pricing tools, marketing, product innovation and customer service.

This helps us to stay ahead of our competitors and remain competitive in the market.

Have a profitable week.

✌🏼