Today's Revenue Management thought:-

Provoking “thoughts !! (part 1)

Certainly, revenue management is a complex and dynamic field that involves optimizing pricing and inventory to maximize revenue. Here are some thought-provoking ideas and considerations related to revenue management:

1. Price Discrimination and Fairness: Revenue management often involves price discrimination, where different customers pay different prices for the same product or service. Think about the ethical implications of this practice and whether it's fair to charge different prices to different customers based on factors like demand or timing.

2. Dynamic Pricing in Real Time: With the advent of big data and advanced algorithms, companies can adjust prices in real time based on various factors such as demand, competitor pricing, and even individual customer behavior. Contemplate the implications of such dynamic pricing on consumers and businesses.

3. Predictive Analytics: Revenue management heavily relies on predictive analytics to forecast demand and optimize pricing. Consider the challenges and benefits of using data-driven predictions to make pricing decisions, and how accurate these predictions really are.

These thought-provoking ideas should stimulate discussions and encourage hotels to think critically about their revenue management strategies in an ever-evolving business landscape.

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

“Smile… it’s Friday ”………

Have a profitable week !

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Today's Revenue Management thought:-

Creating “value” !!

Value-based pricing is a strategy that can be implemented in three steps to help hotels set prices that align with customer preferences and competitive forces.

The first step, customer driven value analysis, analyzes what customers want and establishes values for their wants.

The second step, competitive value analysis, compares how well different hotels satisfy guest requirements.

The final step, competitive value pricing, allows for the planning of pricing methods that take into account both competitive forces and how well customers value the guest stay experience.

Decisions about pricing depend upon a number of considerations, such as how aggressive your hotel wants to be in gaining market share or maximising profit.

By following these steps, hotels can set prices that are in line with customer preferences and competitive forces, ultimately leading to a more successful business.

Have a profitable week !

✌🏼

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.

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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 !

✌🏼