Today's Revenue Management thought:-

Will the end of rate parity lead to a change in the distribution mix ?

The end of rate parity will potentially lead to a change in the distribution mix for hotels. Without rate parity restrictions, hotels have more freedom to offer different rates and promotions through various distribution channels, which could impact the mix of channels they choose to use.

Ultimately, the decision about the distribution mix will depend on a variety of factors, including the hotel's marketing and revenue strategies, its target customer segments, and the competitive landscape in the local market. It is important for hotels to carefully consider the benefits and drawbacks of different distribution channels and develop a distribution strategy that is tailored to their specific needs and goals.

However, it's worth noting that the impact of the end of rate parity on the distribution mix may not be immediate or significant for all hotels. Some hotels may choose to continue to offer consistent pricing across all channels, while others may decide to maintain their existing distribution mix. In the end, the key is for hotels to remain flexible and adaptable to changes in the market and consumer behavior, and to be strategic in their approach to distribution.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Thursday is the new Friday…….

I usually publish an inspirational image on Fridays. Tomorrow May5th is a public holiday in Denmark (Great Prayer Day), which our parliament recently abolished, so it’s being celebrated for the last time.

So Fridays inspirational image is being published today….. trying not to make things too complex.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Are hotels ready for the Post-Rate Parity Era on OTA's ?

Inspired by the decision from the EU on rate parity clauses by OTA’s, I thought it would be a good idea to write about & did a little research.

I discovered this article from 2015 by Max Starkov discussing the subject and find the content still relevant.

Before we all start celebrating, we must ensure that we fully understand the full impact and consequences of differentiated pricing. In addition we also need to ensure that we have invested in the technology that allows us to take full advantage of situation.

Have a profitable week.

✌🏼

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.

✌🏼