Today's Revenue Management thought:-

Laying the right foundation for your budget !

Discovering the most effective budget hacks is easier than you might think.

In fact, the 2 most powerful hacks I’ve found are simply looking at your data and talking to your customers.

It may not seem like a "hack," but it's logical and straightforward.

The truth is, most of the stuff worth doing isn't a secret or a shortcut.

Sometimes, the most powerful solutions are right in front of us.

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

Creating the right foundation for your budget

At which rate and how many rooms can you sell for every future day ?

Your hotel budget plan should be realistic but it is also time to set & review targets.

Your forecast will reflect the expected situation in the coming months based on all the data available on factors that can affect your sales in either a positive or negative direction.

Forecasts should be compared to the budget.

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

Q4 is rapidly approaching, and that means 1 thing …… BUDGET 2024 !

As a hospitality professional, it's important to focus on macro-level data trends when creating your budget.

While operational figures are helpful, macro figures will provide a broader picture of the environment you operate in. By incorporating macro-level data, your budget will become a true reflection of your business's surroundings.

Don't miss out on the bigger picture!

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

“WOOSH”………

and just like that we complete yet another month……….

8 down & 4 to go……& another 12 coming in the not too distant future

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

Are you overlooking an essential cost metric?

Customer acquisition cost (CAC) for hotels direct reservations can range from 8% to 25% of room revenue. Yes, you did read this correctly !!

CAC includes commissions, reservation transaction costs, loyalty programs, and host of other expenses (the list is long) for labor, marketing campaigns, revenue management systems, other tech stack investments, share of PMS cost, etc., etc.

However determining the right mix of these resources in CAC spending can be complex.

The CAC mix can and will vary from property to property. Success will be achieved if you can steer your CAC to a minimum by carefully allocating resources where they have the highest return on investment.

Don't forget to keep track of this crucial metric.

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

The balancing act…..

Boosting revenue through direct bookings is the ultimate goal for all hotels.

However, it's important to bear in mind the associated costs of acquisition, and this matters greatly.

If you can't beat the OTA commission, steer clear.

Acquiring reservations through your own website will come with hidden costs, so weigh your options carefully.

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

Walking the tight rope…..

The Right Balance Between OTA and Direct Bookings can be found.

Even though there’s an OTA vs direct booking conflict (still), you can still nurture and grow your hotel business if you reasses your distribution strategies. One of the best ways to go about this is by leveraging prices, special offers, policies, providing guests with an incentive etc.

OTA’s are here to stay and we will see continued grow in the coming years. Despite hotels not wanting to pay commissions, hoteliers often feel “enslaved” to partner with OTA’s considering the benefits they bring.

Let OTA’s still be a way for you, but also extensively focus on driving direct bookings. 

Despite the OTA vs direct booking clash, with all the right strategies in place, you can always strike the perfect balance and grow your hotel business.

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

Pushing the right price !

The incentive to book can be increased two ways: lowering price, or increasing perceived value.

Unfortunately, if your rooms aren’t selling and if you are focused only on the price, you might reach right away for the price lever to lower it. Perversely, you can accidentally make the situation worse if the lack of demand is really driven by low perceived value.

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

Finding that unique niche in the market……….

The real meaning of 'hangover.'

The lowest form of accommodation in Victorian England was a place where you could, for the price of a penny, dangle on a rope overnight.

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

Staying in control (4)…..

We make decisions to drive simplicity and consciously compromise when it comes to reducing complexity.

Are we eliminating customisation within our software tools, and standardised processes ?

Pricing is a complicated role – with demands from Sales, Finance, Operations, Marketing, HR, IT, Legal, and other functions - making the task of pleasing all, rather challenging.

Any thoughts ?

Have a profitable week !

✌🏼