Today's Revenue Management thought:-

Checking In: “The Magnetic Pull of Discounts for New Hotel Guests"

For hotels, the first encounter with a potential guest is a critical moment.

Discounts serve as a compelling invitation, enticing new patrons to experience the luxury and comfort the establishment offers.

These initial discounts act as a powerful lure, enticing first-time visitors and providing a taste of the hospitality that awaits them.

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Today's Revenue Management thought:-

If you can't convince them, confuse them.

Confusing customers with pricing is a risky strategy.

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Today's Revenue Management thought:-

Staying Competitive with Integrity

In the ever-evolving landscape of the hospitality industry, staying competitive is crucial.

Rate parity is your secret weapon, allowing your hotel to remain competitive without compromising integrity.

Guests appreciate fairness, and when they consistently find the same rates across platforms, it reinforces your hotel's commitment to providing value.

Rate parity is not just a strategy; it's the ethical compass guiding your hotel towards sustained success.

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Today's Revenue Management thought:-

Beyond Numbers—Building Relationships

Rate parity goes beyond numbers on a screen.

It's a promise to your guests that they are getting the best deal, fostering a relationship built on transparency.

When guests feel confident that the price they see is the price they get, it creates a positive perception of your hotel.

This trust is invaluable, transforming a mere transaction into the foundation of a lasting relationship.

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Today's Revenue Management thought:-

A Seamless Experience

Picture this: a traveler explores room rates on different platforms, finding the same pricing across the board.

That's the beauty of rate parity.

It ensures a seamless booking experience for guests, eliminating the confusion that arises from disparate prices.

Your hotel's dedication to this principle isn't just a strategic move; it's a commitment to providing a hassle-free, reliable booking process.

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Today's Revenue Management thought:-

The Foundation of Trust

In the realm of hospitality, rate parity isn't mere industry jargon; it's the cornerstone of your hotel's commitment to fairness and transparency.

When guests encounter consistent pricing across platforms, they not only appreciate the simplicity but also develop a sense of trust.

Rate parity, therefore, is not just a pricing strategy—it's your hotel's promise of value and integrity.

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Today's Revenue Management thought:-

The true cost of acquisition…..

Who foot’s the bill ?

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Today's Revenue Management thought:-

The true cost of acquisition…..

The cost of acquisition for hotels using Global Distribution Systems (GDS) and Online Travel Agencies (OTA) is a crucial factor that affects a hotel's overall profitability and revenue management.

Cost of Acquisition through OTAs (Online Travel Agencies):

1. Commissions: Similar to GDS, hotels usually pay commissions to OTAs for bookings made through these platforms. Commissions can vary, but they generally range from 15% to 30% or more. Some OTAs may charge higher commissions for better visibility or preferential listing.

2. Advertising and Promotions: To enhance their visibility on OTAs, hotels may need to invest in advertising, featured listings, or promotions. These additional expenses can contribute to the overall cost of acquisition.

3. Bundled Services: Some OTAs offer additional services like payment processing, market insights, and analytics, which may come at an extra cost.

4. Rate Parity Requirements: OTAs often require hotels to maintain rate parity across all distribution channels, meaning that the hotel's rates on their website, GDS, and other OTAs must match. This can limit a hotel's flexibility in offering lower rates on their website without violating rate parity agreements.

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

The true cost of acquisition…..

The cost of acquisition for hotels using Global Distribution Systems (GDS) and Online Travel Agencies (OTA) is a crucial factor that affects a hotel's overall profitability and revenue management.

Cost of Acquisition through GDS (Global Distribution Systems):

1. Commissions: When hotels use GDS to distribute their rooms, they typically pay commissions to the GDS providers. These commissions can range from 10% to 25% or more of the booking amount. The exact rate may vary depending on the negotiated contract with the GDS provider.

2. Setup and Maintenance Costs: There are setup and maintenance costs associated with connecting to GDS. Hotels need to invest in technology and systems to interface with GDS providers and ensure their room inventory, rates, and availability are accurately and efficiently displayed on these systems.

3. Marketing and Promotions: Hotels may also spend on marketing and promotional efforts to increase their visibility and rankings within GDS platforms. This can involve additional costs to improve their position and visibility to travel agents and corporate clients.

4. Training and Support: Hotels might need to train their staff to effectively manage GDS systems and ensure that reservations are properly handled.

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

The true cost of acquisition…..

The cost of acquisition for hotels using Global Distribution Systems (GDS) and Online Travel Agencies (OTA) is a crucial factor that affects a hotel's overall profitability and revenue management.

Understanding these costs is essential for hotels to make informed decisions about their distribution strategies.

Both GDS and OTAs come with acquisition costs in the form of commissions, setup and maintenance, marketing, and additional services. These costs can significantly impact a hotel's profitability. Hotels must carefully analyze the ROI from these channels, considering the costs and the revenue generated. It's also crucial for hotels to negotiate favorable terms with both GDS providers and OTAs and to continuously monitor the performance and cost-effectiveness of each channel to strike the right balance in their distribution strategy.

Have a profitable week !

✌🏼