All of our knowledge has its origins in our perceptions.
- Leonardo da Vinci
How we view a hotels’ operations depends on the background you are coming from and the information you are trying to discover. A revenue management perspective allows the numbers to speak for themselves and discover answers through what is provided. A narrow perspective of the various spreadsheets available could be disastrous for the hotel. By gathering as much information as possible, the revenue manager will be better able to decide upon the direction of the hotel and which markets to look into.
At its heart, revenue management is about pricing room rates at a level where you don’t over-price yourself (guests go to the competition) and don’t under-price yourself (lose overall profit). Different guests coming into the hotel have different needs and budgets, however, so there is not one price that will satisfy everyone. Different rate categories are setup to sell the hotel effectively to a variety of guests, and different channels are setup to limit the availability of certain rates (limiting the number of rooms sold on Expedia or Booking.com, for example).
Managing the rates and channels can be time-consuming, depending on how busy the property is and the time of year. In order to help you increase your bottom line, I am available to:
- Analyze your current room-types and rate structure
- Provide analysis of your immediate competition, and the overall market
- Provide an actionable game plan for long-term growth.
- Ensure your profiles on Expedia, Booking.com and other OTAs are setup properly.
- Ensure your CRS (Central Reservation System) is the best solution for you and is working for you – or decide whether it would be valuable for you.
With some extra effort and time, I can also do:
- A complete audit of your Property Management System to make sure it is working for you, and will achieve your longterm goals
- Setup any rate strategies within your system
- Provide instruction to your Front Desk agents on how to take full advantage of it.
- Do daily/weekly/monthly revenue reports to monitor the effectiveness of the strategies put in place.
- Setup a tracking spreadsheet for day-to-day comparisons, month-to-month, and annual growth.