Revenue Management Strategies For Hotels
Revenue Management has contributed millions
to the bottom line, and it has educated our people to manage their business
more effectively. When you focus on the bottom line, your company grows. — Bill
Marriott Jr., Chairman and CEO, Marriott International
The standard definition simply has
to be mentioned: Revenue management is selling “the right product to the right
customer at the right time to the right price.” Furthermore I would like to
add; through the right channel.
Hotel Revenue Management is about becoming the
architect of your own fortune. A hotel room is a perishable product, since the
number of hotel rooms is limited. As a result, customer satisfaction and
pricing remain the most important dynamic variables, which are subject to Hotel
Revenue Management. It is all about balancing demand and capacity by
forecasting prices for the purpose of maximizing the effectiveness of hotels’
resources.
However, the rise of the internet during the 21st century (and with it the rise of Online Travel Agencies and Review Portals) has added another dimension to this field. This development has made traditional Hotel Revenue Management much more complex, while providing new ways to cheaply and objectively measure both customer satisfaction and pricing.
As there are many aspects that must be taken into consideration, it is
impossible to effectively apply the concept of Hotel Revenue Management
overnight. You need to carefully analyse and evaluate big data sets about your
property and its business environment.
This includes information about basic factors like:
- · Past occupancy rates
- · General sales
- · Company target groups
- · Customer segmentation
- · Market(share) information
- · Customer satisfaction
- · Past weather conditions
- · Holiday and event information
- · Closing of nearby hotels
- · Competitor price information and
- · Similar circumstances that is likely to affect your business climate.
As a manager, it’s vital to
understand the basic elements of managing revenue and demand so you can give
informed directions to your teams. And to manage revenue and demand you need to
employ a forecasting methodology. Once your forecasting is functioning, you can
work with the three main levers -- price, yield, and marketing -- to optimise
your revenue. For example: Increase price if demand is sufficiently high or
decrease it if it isn't. Change the restrictions and channels if you need to
fill certain types of rooms or need a specific segment of guests. And finally,
improve the marketing actions to drive more demand.
Our team is well experienced from OTA’s in
India. Hospitality
Minds will have one dedicated Revenue manager for your hotel;
who will take care of your complete portal business. With Ongoing challenges in
portals business. Entire Industry is in developing stage, our Revenue
Management service will save your hotel from all the external changes. So if
you are looking for best Revenue management company in India we are just a call
away.
It’s never too late to start moving towards right direction, join hand with the passionate professionals of Hospitality Industry and lead to success.
🙂
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