Common questions in regard to revenue management and online booking (Part 1)

Common questions in regard to revenue management and online booking

Are we too small for revenue management?

The smaller a business, the more difficult it becomes to obtain appropriate revenues. Revenue management has the goal to improve revenues and future prospects through relevant rate- and sales strategies. Of course, the revenue management strategy must be adjusted to the size of the business. This often means, that a high automation with use of revenue management software is more than just useful! The personal resources for analysis and strategy choices are often not available.

Is revenue management of the city hotel industry also appropriate for holiday homes and holiday hotels?

Experience shows, that revenue management strategies need to be adjusted and customized in terms of business type, guest segments, current booking habits, as well as technical starting situation. A big city hotel with high share of contract customers and 10 meeting rooms will need a different strategy than a garn hotel that only lives off of online travel agent bookings. Just like a holiday hotel with high share of regulars and maybe even higher event contingents will need another strategy and other steps for implementation. However, it has never happened in my practice, that no strategy at all would fit. Each strategy consists of analysis, strategy planning, measurement planning, success control and optimization planning.

What are the most important requirements for a successful revenue management strategy?

  • The analysis and starting situation and preparation of used software for more transparency and easy monitoring of important key figures
  • Willingness of hotel team in management, reservations, marketing, distribution, etc. The knowledge transfer and reduction of prejudice is especially important for success. Thus you will have no fears, such as ‘can I do this, or am I trained enough?’ The team needs to ask the question ‘how can I implement THIS in our business’, and not find reasons, why such strategies won’t work with them.
  • Building of professional distribution, creation of an automated infrastructure for distribution: rates (and conditions) must be well taken care of. Meaningful reporting. Usage of interfaces between property management software, channel manager, central reservation system, and all distribution channels.
  • Reduction of rigid contracts with contingents and fixed rates. In tourism sales, for meeting volumes or business trip volume contracts.


How do I explain to my guests the exchange from seasonal rates to dynamic pricing?

Generally, the planning of communication with guests is an important part of the revenue management project. We have to answer the following questions:

  • Does my new strategy apply to all bookings?
  • Or do we want to protect certain groups of guests (f.ex. regulars) from future disadvantages of the new strategy?

What is important, is, that the most important advantages will become the core of your service promises, and those need to be communicated clearly.


Our rates vary, depending on travel time, room category, duration of stay, and booking date. We guarantee: The earlier you book, the cheaper it will be! The longer you stay, the cheaper it will be! Pay attention to our 7 for 6 and 14 for 12 offers.

Tip: Train all staff with customer contact before you implement the new strategy. Even the staff at the restaurant needs to know the most important changes and make a convincing argument.

Leave a Reply

Your email address will not be published. Required fields are marked *