It is time for revenue management also in the smallest hotels and holiday resorts
Revenue management strategies also for small hotels were never so easily implemented, like today. Why?
Software becomes better because hotels and holiday resorts demand it
More and more property management systems allow a simple implementable “daily rate” or dynamic price strategy (and those who do not, should quickly understand what that means and offer it).
What the hotel software cannot do, the connected analysis and revenue management tools can deliver
The incompetence of many property management systems in the delivery of useful reports and analyses for forecasts, earnings comparisons, booking behavior of different segments etc., is balanced through more and more simple revenue management and analysis tools. And more and more PMS need only a couple of weeks to offer the necessary interfaces. Simply pass on the PMS data to analysis or to the revenue management tool and learn a lot of things, that you would not have known through your best gut feeling.
Guests and customers have become accustomed to it already
Your guests are no longer surprised by the change of a pricing strategy, above all not if the new revenue management strategy is professionally communicated and established. All airlines offer their seats with a demand-based pricing strategy and many guests profit because they book long-term and fly two hours later. Car rentals, the Deutsche Bahn, cruise companies, musical theaters and more and more other service providers such as hairdressers, beauty salons and fitness centers have demand-based offers. At my hairdresser, the new cut with the senior stylist is the cheapest from Tuesday to Thursday between 8 am and 1 pm. And on Saturday, when I must look especially nice, I am glad, if I can get an appointment.
Time to start
Because good revenue management or even a total revenue management strategy is the key to a strong profit growth without restructuring measures.
Consulting and project management implementation of a professional revenue management and distribution strategy:
Pricing, demand and distribution audits
For this analysis, we take apart the data of your hotel software, of your channel manager and of your sales partner.
- Analysis on a daily basis of the demand versus sales results
- Analysis of the individual demand times
- Strengths and weaknesses of the current price strategy
- Category analysis
- Strengths and weaknesses of the current distribution strategy
- Analysis of the digital marketing and sales strategy
- A brief analysis of price and quality strategy of relevant competitors
Development of a suitable revenue management strategy
- Development of the demand times
- Development of the price and category level
- Description of the sales strategy, price levels, restrictions, payment and booking conditions
- Description of any necessary technical modifications
Operational implementation of revenue management strategy
- Development of time and project plans
- Creation of the required technical specifications and tender of new software
- Preparation of the communication plan for guests and customers
- Preparation and implementation of training plans for the hotel staff
Effort and success evaluation
The effort for such a consultation project lies between 5 and 10 consulting days – depending on the hotel size and business type, as well as the starting position. The “return on investment” is as a rule quickly reached through the following sale improvements or also cost reductions:
- Improved revenue per available room (RevPAR) due to improved prices at times of higher demand and more guests at other times.
- Better use of distribution partners, possibly expanding the distribution
- Time savings through significantly improved automation
- Development of direct sales, improvement of the cost of sale factor