The playing field for hotels is quite level nowadays. So what is it that you can do differently to outsmart the competition? Sameer Khan, Revenue Manager for The Byke Hotels & Resorts in India shares some smart revenue management tips.
Every hotel is trying out new things to boost its revenue. But all hit on more or less the same strategies and end up just trying to run along in the linear race track.
Most hotels are online and they are working with the same channel partners as you. They have pricing strategies aligned to the competitor set (which probably includes you!) and are focused on great customer experience and creating an online impact. All smart hoteliers will be using effective technologies, leaving you with little competitive advantage for using it yourself.
So, is it really difficult to be different?
Well, you can try out some of the tips given below to stand out and have an edge over the others in this highly competitive environment.
Follow RevPAR
Of all the figures that hotel owners, managers and financial analysts use to evaluate performance, the most important one is RevPAR. This figure is attained by dividing total guest revenue by total number of available rooms.
RevPAR not only measures occupancy and the room rate, but also provides insight into how well a hotel is utilising its room inventory. Without tracking it, small accommodation providers will find it difficult to know how well they’re doing, and how to improve. You can get a clear picture if the current year is better than the previous year.
Establish Your Presence on Social Media
You have to learn the skill to win on social media. Harnessing it is sure to get you a lot of brownie points. Be sure to get impeccable ratings and have a strong presence on these sites.
When I say social media, people just think of Facebook and Twitter. Well, these are the two most visited platforms. However, we cannot miss out on many of the other sites that can help add revenue to your business – focus on them.
Get Your Promotional Plans Sorted
Have a promotional plan ready well in advance to score over your competition. Know the peak and off season for your hotel’s location. Understand the need of your target market and accordingly chalk out a promotional plan. Your channel manager insights are a great resource into trends, performance of past promotions and occupancy. Utilise these to your advantage. A well planned marketing plan will always help you gain that extra mileage and stay ahead of your competitors.
Play Around with Your Room Rates
You have to really study the market in depth before you start this exercise. Monitor the period when maximum guests tend to make a booking with your hotel (again, can’t stress enough about keeping on top of your channel manager insights. Keep competitive rates when the browsing/visiting period of guests is low. Hike up the rates when you have more guests browsing/visiting your hotel’s page.
Also, do not forget to keep a watch on your room occupancy. If the occupancy for a particular day is low, you need to have competitive rates. And as soon as you have fewer rooms for sale, you can give a push to the rates.
A fast emerging name in the Indian hospitality sector, The Byke is a group of seven luxury resorts and boutique hotels. The group prides itself in harnessing the best-in-class technology and delivering only the highest standards of service through its skilled team.
