Today's Revenue Management thought:-

Value for money !!

Value-based pricing is indeed a sophisticated pricing strategy that can yield substantial benefits for hotel. It revolves around setting prices for your products or services based on the perceived value they offer to your customers rather than solely relying on cost-plus or competitive pricing methods.

By aligning your pricing with the perceived value you offer, you can maximize revenue and create a strong competitive advantage. While it may be complex and requires a deep understanding of your customers and market, value-based pricing can indeed be extremely rewarding in terms of profitability and market positioning.

Make sure to take the time to understand your customers' needs and expectations and the value that your hotel provides. This knowledge will help you set prices that align with the perceived value and ensure that you are not leaving any money on the table.

Overall, value-based pricing can be a powerful tool to drive profitability and growth for your business.

Consider incorporating value-based pricing into your pricing strategy today.

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

Taking money from the table !!

Value-based pricing is the pricing method that determines how much your room is worth based on how much customers think it is valuable. This pricing method is most commonly used, where making a reservation can positively impact a customer's perception of themselves or open doors to previously unattainable life experiences.

It's important to note that there is a subtle difference between good-value pricing and value-added pricing.

Good-value pricing provides customers with the best possible value for their money, while value-added pricing offers extra features or services that enhance the value of your offer, allowing you to charge a higher price.

Regardless of which pricing route you choose, it ultimately boils down to how you "appeal" to the potential guest's mindset. By understanding what your customers value the most, you can determine what kind of value they expect to get from your offer and price it accordingly.

This approach can help you attract more customers and increase your revenue.

In that we are in the hospitality industry, it's important to keep in mind that customers are willing to pay more for a unique and memorable experience. By providing them with a personalized and exceptional experience, you can differentiate yourself from your competitors and increase your chances of getting that reservation.

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

Leaving money on the table !!

Reducing prices is a tempting way to increase sales, and it’s often effective in the short term.

However, if they are not used properly, discounts can range from being ineffective to actually harming your business. Research shows that consumers appreciate added value more than discounts.

The impact of a price discount isn’t always positive. So, instead of reducing prices, try adding value to your products or services.

Focus on what makes you unique and highlight those features to your customers. This will create a sense of exclusivity and increase the perceived value of your products or services. By doing this, you can avoid the negative effects of price discounts and still increase your sales.

Remember, added value is key to building a loyal customer base, which is crucial for the long-term success of your business.

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

“Hitting target”………

Imagine if every mid month (today is September 15th) you could be like this….

Great thing is that many revenue specialists are quite humble individuals.

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

Nailing it !!

The key to successful pricing experimentation is measurement.

If you can’t measure it, you can’t manage it.

It sounds simple, but it's attention to the data and less reliance on opinion.

To achieve accurate results, we need to remove opinion from the results and stick to the data.

Remember, measure twice - cut once.

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

Applying the brakes ??

Are you considering using stay controls in your hotel ?

It might seem counterproductive at first, but depending on your hotel type & location, they can be a valuable part of your revenue management toolkit.

Restrictions like minimum and maximum length of stay, minimum price, and closed to arrival can help drive bookings on off-peak days, increase occupancy and revenue, and lighten your staff's daily workload. By combining all these points, you'll likely see a lift in your profitability.

To establish the best results, you'll need to analyze demand data, booking pace, market shifts, and other data points. The good news is that automated pricing tools can now implement stay controls into your pricing strategies.

So, don't be afraid to use stay controls in your hotel. They can be a powerful tool to optimize your revenue management and increase your profitability.

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

Pump up the jam !!!!!

Upselling, cross-selling, and offering package deals can help you maximise revenue per guest.

Creativity is the only thing putting a limit on what auxiliary sales you can generate.

Curating these offers can be challenging, but with the right approach, you can increase your sales and improve your guests' experience.

Start by identifying the needs and preferences of your guests, then create personalised offers that add value to their stay. Make sure to communicate the benefits clearly and offer options that fit their budget.

Remember to track your results and adjust your approach accordingly.

With a little creativity and effort, you can boost your revenue and provide your guests with a memorable stay.

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

Want to increase your hotel's occupancy rates and revenue?

There are many powerful pricing strategies you can use!

Start by tracking competitor rates and hotel price trends, forecasting demand, offering incentives and discounts, and utilizing dynamic pricing software. With these tools, you can set prices that are both competitive and profitable.

But don't stop there!

Upselling, cross-selling, and offering package deals can help you maximize revenue per guest.

By carefully considering these strategies, you can effectively increase your bookings and drive growth.

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

“Hmmmmmm”………

Hope this is not how budget decisions are made at your property….

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

It’s a team effort !

Preparing a hotel budget can be a daunting task, but it's important to share it with various teams for feedback and refinement.

Achieving financial goals is a team effort, and getting acceptance of, and active support from everyone is essential.

Remember to revisit your budget regularly to refine your strategy for the future and understand current performance.

Have a profitable week !

✌🏼