Today's Revenue Management thought:-

Change your focus & mindset on pricing.

Focus on the profit you are generating, NOT the quantity you are selling.

When your mindset is focused on the number of rooms that you sell, it is easy to resort to lowering prices and hence generating lower profits than you need to.

Focusing on quantity, can result in favoring lower profit actions, like resorting to discounting in order to get more bookings, which isn’t always the solution.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Gut feeling…. we personalise our pricing.

Our opinions about money is related to our views about pricing & what we feel our travel product or service is worth …

These feelings we have will impact how we set prices. Often, we set prices too high or too low – because of emotional reasons.

Dismiss emotion from the equation !

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Everyone wants to pay the lowest price……..

But before you even consider dropping your price, consider that most tourists are value-based shoppers and not price-based shoppers (even if they say they are price-driven). This means that there will always be a trade-off your guests will make because of what they perceive is value to them……and this can be very personal !

So remember that not every guest wants to pay the lowest price – and if they do, you haven’t convinced them to think about anything else!

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Creativity knows no limits …….

The summer heat can stimulate some pretty creative thoughts…… not only from the Revenue Department.

Have a profitable week.

✌🏼

Today's Revenue Management thought:-

Here we go… summer holidays are about to start…. are you ready.

• You’ve updated your rates & pricing startegies -✔

• You’ve ensured that your website booking engine is full optimised to meet demand - ✔

• You’ve loaded all your summer specials & packages - ✔

• Your bedding configurations & extra person policies are in place - ✔

• You’ve ensured that you are top ranked on web search results - ✔

• Your front desk & reservation staff are all up to date on the above - ✔

Then…. bring it on… summer demand surges are ready to be dealt with… maybe there is even time for you to have a summer break.

"By failing to prepare, you are preparing to fail." - Benjamin Franklin

Have a profitable week.

✌🏼

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.

✌🏼