Today's Revenue Management thought:-

Staying in control (3)…..

Every decision a revenue manager makes affects a hotel’s profitability.

With automated revenue management systems in place, revenue managers can reduce their workload in terms of ‘number-crunching’ and spend more time on analyzing data and making better and more strategic decisions for their hotel(s).

Any thoughts ?

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

Staying in control (2)…..

Many properties have opted to use automated rate updating tools - which is absolutely fantastic.

There are still many PMS’s that do not support connectivity to RMS (believe it or not), and hence updates have to be performed via a Channel Manager. That said, there are also issues with 2 way connectivity between Channel Managers & PMS’s.

It becomes quite cumbersome, and time consuming to monitor, and adjust all these links - when your tech stack presents these challenges. Additionally there can be issue with data validity.

How do you go about being efficient in your revenue management practices when facing these challenges ?

Any thoughts ?

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

Staying in control…..

Throughout the years we have all built elaborate pricing matrix’s, with rates being linked to a “master” / Rack rate, together with a multitude of rate levels and codes.

In this day and age where we are seeing a shift to automated pricing tools, dynamic pricing models replacing static pricing, wholesalers working with indirect contracting through the likes of HyperGuest - is there still the need for these elaborate pricing matrix’s ?

I would argue yes - as this entails that you have an overview of your rate structure. That said, they probably do not need to be as elaborate as previously.

Any thoughts ?

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

Just that little extra……….

We all know that our guests want something extra, but do we create the right add-ons, and price them correctly.

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

Broadening your horizons…..…..

Have you made the leap to access non traditional data sources when looking for demand clues? 

It’s very possible there’s more to discover than you think - and the wealth of information available is staggering.

Have a profitable week !

✌🏼

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 !

✌🏼