Competition in hospitality is intensifying every year. With OTA dominance growing and commissions continuing to climb, hoteliers can no longer afford to leave their fate in the hands of online booking channels. In times like these, revenue management strategies offer hotel owners the opportunity to take control of their profitability.
By making the most of all the available hotel and industry data, revenue managers can establish trends and patterns in guest behaviour and market demand. Variables that influence these factors, such as political events, weather, average incomes and so on can help owners interpret data better. While it’s still impossible to predict the future, revenue managers can use this data to make fairly accurate estimations about future demand. This allows them to price their inventory better, and sell on the right channel to the right type of guest.
Once the data has been segmented into relevant groups, it becomes much easier for managers to experiment with new strategies. This segmentation can be done based on the type of guest, type of booking, source of the booking, the possibilities are almost endless.
If you’re new to the revenue management process, it’s easy to feel intimidated by all the jargon and abbreviations. However, revenue management at the end of the day isn’t more than a method to optimize a hotel’s inventory to extract maximum value from each room. By following a few guidelines, you can begin implementing the basics of a robust revenue management strategy!
Revenue management is an ongoing process, and building the right foundation is critical.
Hotelogix offers you a complete guide to all you need to know about revenue management – download your free copy of, A Guide to Revenue Management for independent hotels, and enjoy improved profitability for years to come!