Today's Revenue Management thought:-

Would you rather have higher margins or higher occupancy?

Price increases to drive profit increases will become unsustainable at some point. The strategy to make more revenue solely through price increases from less buyers over a prolonged period of time works fine for collectors items, not so well for perishable goods like hotel rooms.

If you're running at high occupancy, then it makes sense to raise prices, and increase margins. 

If you have underutilised capacity, then keeping prices flat, or lowering them to increase occupancy, makes more sense. 

What factors would drive your decision?

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

Unfortunate oversights…… 😔

Having procedures in place to follow up on your group reservations are of utmost importance. Without these procedures you can end up in situations which are rather unfortunate.

Automation of your follow up procedures can and will entail that you are not caught with your pants down, and all of a sudden have to find a method to sell 50+% of your capacity with 3 days notice…… yes this happened for a client of mine this week.

Luckily this business will come through at a later date.

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

What are have the other guys done & even more important - what are they going to do in the future?

Monitoring competitor pricing is crucial in revenue management.

Looking back - have you noticed any changes in your competitors pricing behaviour over the last few months ?

Looking forward - have you observed repositioning behaviour, or is it business as usual ?

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:-

Automate….. automate….. automate !!

How many revenue specialists experience this daily, weekly or monthly ?

Have a profitable week & a fabulous summer !

✌🏼

Today's Revenue Management thought:-

Hey we aren’t coming…… !

How many times have reservation or reception staff heard these words. Even worse when the expected guests do not arrive

It is important to safeguard your hotel’s occupancy and provide clear policies for cancelling a reservation.

Cancellations can occur due to illness, traffic, or the client simply making an alternative choice. Whatever the reason, it can lead to lost revenue and profits.

Ensure the policies attached to your rates have the following elements included:-

• Be mindful of your tone

• Define a cancellation time frame

• Outline penalties for cancelling

• Attach the policy to the relevant rate

Setting a clear standard means no one is surprised, even if a cancellation results in an unfortunate fee.

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

Hmmmmm - too many choices……….What’s the rate ?

One often encounters a multitude of rates for the same room type, available for a given day - Rack Rate, Last Minute Rate, Non-Refundable Rate, Flash Sale, Romance Package, Breakfast & Dinner Rate… and the list can go on & on.

Why should our guests choose anything other than the most affordable rate !

Avoid confusion by ensuring that you are presenting relevant offers & rates on given days. Ensure that your rate set-ups have the correct restrictions and controls associated with them. 

Who has not fallen over a Romantic Package when looking for a single room….. uuuggghhhh !!!

Any thoughts on the “correct” number of rates that should be returned for a search on your booking engine ?

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

Summer is slowly winding down……

As we move into another season of the year, we need to reposition ourselves to deal with changing demand patterns, pick-up patterns & segments.

Hotels need to move beyond applying blanket discounts, or incentives, to attract bookings through winter.

It is those hotels that monitor previous years’ booking patterns, build accurate demand forecasts and develop specific campaigns for specific audiences that are best positioned to succeed in a times of lower demand.

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

What’s your value proposition……

Very seldom is your customer buying from you because of price alone. 

Clearly your price is an important factor but support, service and of course quality can be equally important.

Let your customers know you appreciate their business.

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

Let it go……….. maintain your sanity !!

There’s a fine line when it comes to separating your data driven mindset & your private life.

Have a profitable week & a fabulous summer !

✌🏼

Today's Revenue Management thought:-

Playing the winning hand….. The house always wins !

Hotel cancellation policies not only contribute in generating revenues but also affect consumers’ reservation behaviours.

The increased popularity of last minute deals, and more so mobile applications that target customers seeking the last minute deal, entails the need for policies that reflect these booking patterns and won’t leave you hanging dry in the event of cancellation.

Optimal cancellation policies are a major tool to ensure proper market differentiation and effective price discrimination. 

Explore your options, 30 days, 1 week, 72 hours, 24 hours, same day 2 PM, non refundable, etc etc…. Tailor your policies to reflect your perception of consumer behaviour, whilst at the same time reducing potential losses.

Have a profitable week !

✌🏼