Today's Revenue Management thought:-

A revenue managers 9 to 5…..…..

What people think revenue managers do:
- Run cool algorithms
- Cool pricing experiments
- Apply cool behavior techniques
- Shine the 'pricing' crystal ball

What revenue managers actually end up doing:
- Spy on the competitor's website
- Clean data for the millionth time
- Conduct marketing research
- Countless alignment meetings
- Create pricing sheets
- Create value stories

What does your typical day look like ?

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

Looking out over the horizon…..

How far out do you open your rates and inventory, and for which distribution channels ?

I have seen examples of 730 days (all inventory & rates), 365 days (all inventory, but only Non Refundable, non discounted rates), 120 days (partial inventory & stay restriction of 2 days for all rates - only on property web), etc. etc.

The are millions of combinations and the solution you choose should be based on a careful analysis of future events, group demand, competitor behaviour. Your choice should also be one which allows you to remain in control, yet flexible enough to not turn away potential business.

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

La familia…….

The summer season being more or less over, it’s time for a little reflection.

We’ve hosted numerous families, with infants, children & young adults (teenagers).

I have observed a wide variety of pricing practices, from flat rates for all between 0 & 17 years, to differentiated pricing based on some predefined age groups.

I know what my preferred solution is, and wonder why so many hoteliers opt out on this revenue stream.

Would love to hear you comments & takes on this.

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

This is not what dreams should be made of……

How many revenue specialists experience this ?

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

24/7/365….. revenue never sleeps.

Automation allows us to maintain and update rates and inventory, when the office is unmanned.

Despite all good intentions, automation does require some level of manual control & evaluation.

Who takes care of this when you are not in office, evenings, nights, weekends & holidays ? Are your pricing startegies really so water tight that no monitoring is necessary.

Would love to hear you comments & takes on this.

Have a profitable week !

✌🏼

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 !

✌🏼