Today's Revenue Management thought:-

Hotels should avoid price gouging for ethical and strategic reasons.

• Firstly, it risks damaging the hotel's reputation, eroding customer trust, and jeopardising long-term success.

• Secondly, it may lead to negative reviews and social media backlash, deterring potential guests.

• Thirdly, cultivating customer loyalty through fair pricing is crucial for sustained profitability in the competitive hospitality market.

  • Lastly, engaging in price gouging during emergencies can be perceived as exploitative, tarnishing the hotel's image and potentially attracting legal consequences.

Prioritising fair and transparent pricing aligns with industry standards and fosters positive relationships with customers, contributing to a sustainable and reputable business.

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

While price gouging is controversial, hotels might consider it for several reasons.

Firstly, during high-demand periods, dynamic pricing maximises revenue, optimising financial performance.

Secondly, in emergency situations or unexpected events, fluctuating prices can help manage limited resources efficiently.

Thirdly, strategic pricing can incentivize early bookings, reducing uncertainties and improving operational planning.

Lastly, it allows hotels to adapt to market conditions, staying resilient during economic fluctuations.

Nevertheless, ethical considerations and customer perceptions should guide such practices, ensuring that short-term gains do not compromise long-term trust and brand reputation in the competitive hospitality industry.

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

During my recent trip to Munich, my flight was canceled due to a snowstorm. I got rebooked on a 6:40 AM flight, and considering the challenging weather conditions from the city center to the airport, I opted to book a hotel nearby. The usual price for this 3-star property is around €80, but due to the circumstances, they were charging over €300.

This experience prompted me to reflect on how consumers perceive price gouging. Although I was irritated, I had found an expensive but necessary solution to my problem.

In an industry that relies on positive experiences, engaging in price gouging can lead to lasting consequences for a hotel's success and reputation. Many customers view it as exploitative and unfair, causing erosion of trust and loyalty.

• Did I feel exploited? Yes !

• Did the hotel create a situation where trust and loyalty were eroded? Not in my case—I had never stayed there before and didn't anticipate the need to stay again.

• Did I leave a negative review? I considered it but opted for a neutral and factual review.

Do you leverage such situations to your property's advantage, and do you foresee any negative consequences of doing so?

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

It’s Friday - time to contemplate.

Contemplating prices is akin to deciphering the language of value in the marketplace. It's not just about numbers; it's a strategic meditation on perception, customer expectations, and the delicate balance between affordability and quality.

Like a skilled artisan, thoughtful consideration of prices crafts an experience that resonates with the audience, transcending mere transactions to create a symphony of perceived worth.

In the intricate dance of commerce, each price tag is a brushstroke on the canvas of consumer consciousness, inviting contemplation and influencing the narrative of value in every purchase.

In the fast-paced hospitality world, an efficient RMS is a game-changer for maximising revenue and enhancing guest experiences. Invest wisely (both your time and money) !

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

Hospitality is a symphony of service, and revenue management is the conductor ensuring every note, every room, and every service harmonizes to create a masterpiece that echoes through both guest satisfaction and financial prosperity.

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

In the dynamic world of hospitality, revenue management is the art of anticipation – predicting not just what guests need now, but what they'll crave next, ensuring every dollar spent is an investment in future success.

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

Consider revenue management as the silent storyteller of hospitality, shaping narratives not just in numbers but in the priceless moments guests carry with them, and the lasting impression on the bottom line.

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

In hospitality, revenue management isn't just about filling rooms; it's about crafting an experience worth paying for, a delicate dance between value and profitability.

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

Still pricing manually - a typical Friday morning pricing meeting ?

In the fast-paced hospitality world, an efficient RMS is a game-changer for maximising revenue and enhancing guest experiences. Invest wisely (both your time and money) !

Have a profitable week !

✌🏼

Today's Revenue Management thought:-

For hotels without a Revenue Management System (RMS), it's high time to contemplate its adoption.

This week's four-part blog series will shed light on the challenges associated with adhering to manual methods while determining your prices.

Part 4: The Human Touch in Setting Future Rates

In the absence of automated tools, the human touch becomes paramount in setting future rates. Engage with guests, gather feedback, and adapt based on changing preferences. Develop a keen understanding of your target audience and adjust rates in alignment with their expectations. As consumer trends evolve, the ability to pivot strategies manually, incorporating a mix of intuition and market insights, becomes the key to staying competitive and finding the elusive sweet spot in setting your daily hotel room rates.

In the fast-paced hospitality world, an efficient RMS is a game-changer for maximising revenue and enhancing guest experiences. Invest wisely (both your time and money) !

Have a profitable week !

✌🏼