Today's Revenue Management thought:-

Revenue management is a dynamic and constantly changing field.

As a revenue manager, you are responsible for making a lot of decisions daily that directly impact net profit of a hotel.

Smart pricing strategies and efficient inventory management are the keys to success.

To be successful in your role as Revenue manager, you should not only prepare accurately the strategy, but at the same time be open and flexible, constantly measure the results, draw conclusions, and work hand in hand with new technology.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Consistency…… absolutely boring but essential !

An example from the everyday life of RM…….

A new client reached out to me because they could not understand the large number of errors their Channel Manager was reporting.

Turnout that the mapping was slightly off.

Why - a pretty simple mistake…… all their rate codes in the PMS were a combination of 4 numbers & letters followed by BAR - 7 characters in total.

In the Channel Manager the same rates were entered….. but this Channel Manager had a limit of 6 characters, which entailed that the rate codes were added with the 4 number/letter combination followed by BA & not BAR - despite the property believing they had added BAR, and not realising the space limitation of 6 characters, entailed that the R was dropped.

Amazingly the CM allowed mapping to the correct rate in the PMS, but was sending the shortened version of the rate code in the reservations - hence the errors.

I know, I know - what kind of CM is this…. but it’s what they have & also strengthens the arguments to invest in a better infrastructure

Easily overseen and just goes to reiterate the importance of consistency.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

What are the other guys doing ?

Monitoring competitor pricing is crucial in revenue management.

Understanding how & why competitors price their rooms and services allows revenue managers to position their hotel competitively in the market.

This information helps in setting rates that are attractive to potential guests while still maximizing revenue.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Sometimes tough decisions have to be made…….

Luckily - revenue teams have the numbers to support the decisions.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

In Denmark we have a tradition for flying the flag when celebrating great things…… like my birthday.

In Hospitality many properties are referred to as “flagged” when associated with a brand.

Does being “flagged” in hospitality have a greater impact on your ability to grow revenues ?

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Aligning you revenue strategies.

By aligning your revenue strategies across different departments and functions, you can optimise revenue, enhance guest experiences, and drive overall business success.

It does however requires effective communication, collaboration, and a holistic approach to revenue management that considers all revenue streams and their interconnectedness.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Pricing is a crucial driver in hotel revenue management. Effective pricing strategies can directly impact a hotel's revenue and profitability.

It's important to note that pricing is just one element of a comprehensive revenue management strategy. Other factors such as distribution, marketing, and sales strategies also play significant roles in maximizing revenue and achieving overall business objectives.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Pricing is a critical driver of not only profit, but also client engagement and the sustainability of every hotel.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Let’s see if our tech people can get this up and running !

Don’t over complicate your tech stack - invest in what you need & can get you the results, and not In what you might need.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

A helping hand - the role of ChatGBT in Hotel Revenue Management.

ChatGPT can play a supportive role in hotel revenue management by providing insights, data analysis, and recommendations. By leveraging its capabilities, revenue managers can optimize data analysis, pricing strategies, personalized offers, inventory management, and real-time communication.

It's important to note that while ChatGPT can provide valuable support, human expertise and judgment are still essential in revenue management. The AI model should be seen as a tool to assist revenue managers in decision-making processes, rather than a complete replacement for human involvement.

Have a profitable week.

✌🏼