If you haven’t yet taken full advantage of revenue management for your property you may be losing an opportunity to maximise the returns from your asset(s). For this reason and to gain much needed competitive advantage, you simply must have a revenue management model in place.
The hospitality industry is regarded as one of the most efficiently managed e-commerce sectors, particularly for its use of various technologies in securing conversions across multiple booking platforms. Now with multiple channels, it is critical to drive business through most profitable channel.
Channel optimisation is the art of selling rooms through most profitable channels through on going analytics and demand dynamics. Online channels are platforms cannot be ignored. Since there is no escaping the need for online channels, it is imperative to use them to your property’s advantage. Key things to consider when managing online channels are:
Real Time Inventory
Maintain real-time inventory through your channel manager; which will ensure smart positioning by online channels and that will assist your revenue manager to yield better results.
Rate Parity
Try to maintain highest rate parity all the time across online channels; yet be open to tactical and promotions subject to demand dynamics.
Dynamic Pricing
Revenue management means not selling a room today at a low price to sell it tomorrow at a higher price. It also means selling a room at low price today if you do not expect higher demand.
Your property is probably losing an average of 40% potential online revenue if it is practicing flat pricing. Properties should be priced as per the anticipated demand and competition.
Forecast
Forecasting demand by channel is must. It can be as basic as monthly room nights, average rate and revenue. This will help hotel to strategise future pricing and planning.
Monitor Pick-Up
Online booking materialisation is subject to overall demand conditions. Daily pick-up monitoring for each day in the future is necessary. Special events pick-up should also be monitored on an ongoing basis
Analyse
Revenue managers should analyse the historical data to understand the impact of applied strategies and tactical.
Revnomix Solutions are thinkers and change makers in the field of hotel revenue management. Prakash Singh is the co-founder of the company and has immense experience in revenue management. More info at revnomix.com.
