Hotel revenue management may seem like a different type of management than the many types of management in the business landscape, but Revenue Management is at the heart of the hospitality industry as a whole, where the revenue manager must regulate orders and room prices in this way. maximizes income.
The main job of the revenue manager was (traditionally) to monitor the ratios that varied throughout the day and to update their reserve prices according to market equality in order to sell inventory at the highest price in the shortest time and at the same time to sell inventory at the highest price. , RevPAR and ADR. But as time has changed and technology has taken root in almost every industry, there are countless Hotel Revenue Management Tools such as Rate Shopper, Channel Manager, Rate Optimizer, Online Reputation Manager, which have also halved the work of revenue managers. and doubled efficiency.
In addition, with advances in technology, there are a number of proven Do’s and Don’ts that can guide revenue managers to develop revenue-generating strategies. Let’s discuss some of them here:
• See larger image – A smart approach for Successful Revenue Managers is to not only stop accumulating revenue from room sales, but to start focusing on the revenue earned by a particular guest, i.e. to focus more on the Guest Lifetime or Customer Lifetime. some may like to call him. As part of guest experience management, a hotel / revenue manager should take notes, including the choices and preferences of existing guests, and provide them with a variety of services they can receive during their next stay. In addition, depending on the personality and demographic profile of your guest, they can be offered various spa services of your hotel, spa, club, gym, disco, etc. You can suggest. This practice creates new sources of income and increases overall income. inventory was purchased at a low price.
• Healthy mix and inventory distribution – When looking for maximum bookings, a revenue manager should know the art of creating a beautiful balance to sell your rooms online and offline. It would not be a good approach not to run out of inventory or sell all of them directly through OTAs. Means come to get rid of this demand. An authorized online channel distribution manager can be very supportive here. The Revenue Manager should touch on the spending rules of direct and OTA customers so that you can optimize sales with the right mix of OTA bookings and direct bookings to achieve revenue targets. Modern Channel Managers allow revenue managers to turn on and off any OTA channel they feel does not give the desired result or is too expensive.
• Monitoring competition – In order to get a better profit, it is always recommended to pay attention to competitors in the market. A good revenue manager should monitor the prices, promotions, strategies and processes he can accept for hotels when needed. In a hotel business where prices fluctuate on a daily basis, it is imperative to be vigilant in the face of daily competition. The good news is that you have the means to do so; Hotel rate seller. This tool helps you to track the daily room ratios of the set you have decided in advance. Not only this, with the help of these tools you can do a lot of other things; An exploration of total market supply and average market ratios for your property on various OTA and Metasearch sites, even Airbnb market supply and average market ratios, price and availability reports for your properties, a comparison of your ratings against OTA, and a word contest. Advanced tools also support event tracking for your city to ensure that hotel room prices are pre-adjusted when required. Competitors can protect against the failure of any new work experience in the industry, and if successful, can follow the set.
• Pay attention to the appearance of the hotel brand and online reputation – Developing strong customer loyalty can help a hotel stay out of competition. Reviews of your hotels require a lot to create a strong brand image. Customer feedback and rating are directly related to the customer’s choice of order and thus revenue. Even the most competitive prices can’t attract customers if the reviews aren’t positive. According to one study, only the positive reviews of online travel bookings are valued more than the price. However, many consumers, despite the very low price, said they would not book a room in a hotel without positive feedback.
Industry Online Reputation Management understands that work is not a one-day job and is not easy to do. Especially with so many social media sites, visitors are everywhere, so check out the sites to watch your visitors. Brand images are created over the years and shattered in an instant. A very strong reason is that independent or hotel groups have adopted Online Reputation Management Tools. Larger hotels are increasingly using restaurant management to manage their reputation.
Some DONT revenue managers should follow when creating strategies to make a better income.
• Ineffective suggestions – Exclusive offers and packages are new colors and are undoubtedly a powerful technique that makes customers attractive to order. However, a revenue manager should be well aware of the potential of the hotel to seize reservations without being offered. It has often been observed that revenue managers only follow the competition and continue to make useless offers to replenish part of the hotel revenue.
• Overbooking – Ordering more than the available inventory for fear of cancellation can sometimes prove to be a wise move. However, this process needs to be highly optimized, as any misconceptions can create a problem for the customer to seriously damage the Hotel’s brand image.
• Reliability in Single / Limited Channel for Sale – A smart revenue manager never trusts multiple order channels to sell room inventory and always maintains a profitable mix of OTA channels to take more orders. Reluctance by revenue managers to adopt new approaches can cause a hotel to lag behind in revenue generation. RMs should also monitor the activities of each of the channel partners. Set order targets for all channels, check order volume and order stay (LOS), profitability, etc. But also pay attention to direct booking and walking. This not only reduces hotels’ dependence on OTA, but also helps save on heavy OTA commissions, thereby increasing profits.
• Indifference to Social Media– Social media has emerged as the most crude and honest platform for customers to express their opinions, share experiences and complaints, and even place orders. Being unaware of the power of social media can be a suicide, and therefore the revenue manager must ensure that hotel employees and managers communicate properly with customers on social media.
• Plays very safe – Business is about to be brave and take calculated risks. It is very safe to play and daily work experience can protect your bread, but it is very important to take a risk for a business to flourish. By applying the latest strategies and drawing fewer paths, the results can be extraordinary. The income manager must know the art of taking calibrated risks.
Over time, many new approaches will be tried, some will work, some may fail. Change in this competitive industry is only sustainable, and revenue managers must be aware of any concerns the industry may witness.