Think differently about Your Revenue Management Strategy
You must have heard: “Think out of the box”, “Think Differently” may a time, probably from me as well. But, in today’s competitive landscape, especially in our hospitality industry, it is of immense importance that you start thinking differently. Hoteliers need to differentiate themselves, especially in the eyes of the guests, who are paying to book a room with you. This year, try out a more holistic approach to Revenue Management for your hotel. Here are a few tips to get you started:
- Think Beyond Room Bookings: Yes, selling rooms is important, but what about your conference spaces and banquet venues? These can easily account for 50% of your overall profits, if marketed correctly. Concentrate on those for a while.
- Ensure Pricing Decisions are optimized: Make sure that all pricing decisions are optimized. Remember, pricing decisions made in one department somehow or the other impacts the other departments.
- Price rooms according to Demand: Quoting high rates to big groups might end up alienating them, and thus you will lose their business. Learn to compromise, and give a little as you get a little
- Don’t give up on OTAs: Travel agents and OTAs might not be the ideal solution for your booking crunch, but they are definitely a way to get started on filling those rooms. And once you have started, you can get rid of them slowly
These are only a few options you can try out for now, and let me know how they worked out. Call me, drop me an email, or drop in at my office.