Hotel Revenue Management

Study shows that revenue management will be more strategic and more technology driven expected to move from more of a tactical discipline in which rooms revenue is maximized, technology will play a key role such as online business ,data driven marketing ,remote and virtual yield management trainings etc.

Revenue management is an extremely important concept within the hospitality industry, because it allows hotel owners to anticipate demand and optimize availability and pricing in order to achieve financial goals .

Pricing

By driving prices up during high peak periods and knowing how much to discount prices by to ensure rooms are rented during low peak periods, hotels can maximise their return. Through dynamic pricing, businesses can provide discounts and incentives in a controlled way during different seasons.

Distribution.

Hotels generally advertise their rooms through multiple channels, such as online travel agencies, to optimise reach and promote sales. Distribution management is essential and this involves calculating the minimum numbers of rooms needing to be sold for any given period by each channel. In doing so, you then have the ability to make informed choices regarding reallocation from cancellations or where to list spare rooms to maximise sales.

Market segmentation

Being aware of your market and the variable preferences, demands and affordability of different demographics are paramount to understanding how to price and distribute your room sales across the various channels. Not only does this help in managing your existing rooms, but it can also allow you to capture more of the market and increase sales and revenue. Flexibility is an important virtue required of hoteliers and being able to understand your clientele and adapt to their needs is vital to building loyalty and guaranteeing profitability.
hotel inventory management

Our greatest asset is the customer! Treat each customer as if they are the only one!” – Laurice Leitao

Segmentation
Rates
Forecasting
Revenue management strategy
Social Network and Online Platforms
Opinion on Internet

What else ????

Bill Marriott Jr., Chairman and CEO, Marriott International once said:

“Revenue management has contributed millions to the bottom line, and it has educated people to manage their business more effectively. When you focus on the bottom line, company grows.”

Covid-19 has exposed weaknesses both in hotels managing Revenue Management internally as well as the traditional outsourcing model , so how you will cope with the changes ??.

Evaluating sales and revenue activities is critical to maximize productivity & it is imperative to measure the hotel results described in key performance indicators ... $$$$.