Given the volatility of demand and the high fixed costs involved in operating commercial flights, it's no surprise that the airline industry has always been at the forefront of revenue management. Commercial airlines were some of the first companies to analyze consumer behavior and tailor their prices to the information. In this article, you'll learn everything you need to know
If there is something that people working in marketing in hospitality is talking about is the power of a CRM system. But why has it become so important? Today, the challenges of hotel marketing are increasing consistently. People demand more personalization, better reach, multi-channel approaches, etc. And if you are not meeting these requirements, the numbers will show it. The Benefits
Question for Our Revenue Management Expert Panel: How do you calculate demand and room price for unique events that are new to your area (e.g., major concerts, Olympic Games, World Cup, etc.) without having historical data to refer to? (Question by Massimiliano Terzulli)Â Our Revenue Management Expert Panel Massimiliano Terzulli - Revenue Management
What do hoteliers resist about revenue management? One common pushback is lowering prices below a certain psychological threshold. Yet, it's essential during low demand and pays off later. Some hoteliers believe: "I cannot sell below a certain figure because otherwise low-quality guests will arrive and lower the hotel's image; I prefer to stay empty and not sell." Yet, those who
Regardless of who you are, competition in the hospitality industry is increasingly fierce, and winning new customers is a major challenge even for experienced hoteliers. So, what makes the most significant difference in getting guests to stay at your hotel versus the one down the street? Is it price? Is it the chance to benefit from a personalized loyalty program?
When hoteliers, hotel owners, or management seek the help of a revenue management consultant or outsourcing company, they often mention something like, "We've casually practiced revenue management in the past." As the consulting engagement kicks off, these hospitality professionals will say they understand the discipline even though they lack a structured approach. Yet, revenue management is all about structure. Pricing
Question for Our Revenue Management Expert Panel: What are the links between hotel reputation scores and revenue management? How do they influence each other? (Question proposed by Pablo Torres)Â Our Revenue Management Expert Panel Pablo Torres - Director Of Sales Marketing, Alannia Resorts Chaya Kowal - Director of Revenue Management, Potato Head
As a hotelier, you know many factors go into your room rates. Three of those factors are your costs, current demand, and your hotel’s online visibility. Revenue management is the science of assessing these and other factors and raising your profitability year after year. This article offers a guide to analyzing your costs and improving your analysis with the goal
You'll probably agree that seizing revenue opportunities is more important now than ever - especially with costs increasing in every area of hotel operations and demand only recovering. Otherwise, your property's profitability could take a severe hit, and its long-term business success may be at risk. Luckily, there are many things you can do to capitalize on demand and get
Question for Our Revenue Management Expert Panel: Are Revenue Managers overloaded with strategy and result decisions? How can Revenue Managers collaborate and share responsibilities with other teams? (Question proposed by Daniel Feitosa)Â Our Revenue Management Expert Panel Daniel Feitosa - Revenue Management Specialist Sandra Gannon - Commercial Consultant, Revenue Puzzle Patrick Wimble -
When you review your hotel's mid-year numbers, what do you see? Are your occupancy rates up? Is revenue up? Is your hotel enjoying a revenue boost from 2019? A sample of over 400 revenue-managed hotels found they're on track to close 2022 with a 15%-40% revenue boost from 2019. A Decrease in RevPar for European Hotels A review of May
Establishing a hotel budget involves estimating revenue and expenditure over a defined period and establishing rules about how much money is available based on various factors, including changes in customer demand. In this article, you can access some effective budgeting tips for your hotel. Table of Contents: What Is the Hotel Industry? What Is Hotel Revenue Management? Why Is it
At the Asian American Hotel Owners Association’s annual event, Tyler Morse, chairman and CEO of MCR Development, recently shared a quote to inspire hoteliers to take revenue maximisation into their own hands: “Increase your rates; do it with confidence. … Stop wasting money … Buy smart technology… This is a very simple business … don’t get swooned by all the
Question for Our Revenue Management Expert Panel: What information is most important to hotels when forecasting? What data should be prioritised by revenue management teams? (Question proposed by Daniel Feitosa) Our Revenue Management Expert Panel Chaya Kowal - Director of Revenue Management, Potato Head Family Theresa Prins - Founder, Revenue Resolutions Daniel Feitosa
When applying revenue science to your hotel or resort’s dynamic pricing tactics, there are three areas ripe for optimization: demand, capacity, and price sensitivity. Taking the time to review the basics and reassess how each of these factors into your revenue strategy is critical to positioning your hospitality business for maximum revenue performance and growth. For the Right Price… One
As a hotelier, you know Occupancy and Revpar (revenue per available room) data are fundamental to your bottom line. Such data helps you interpret and compare the profitability of your property from year to year. As a revenue manager, you can make educated predictions. This article will review the benchmarks of the past two years and will use 2019 data
Question for Our Revenue Management Expert Panel: Successful Total Revenue Management strategies rely on great communication between all hotel departments. What tips can you offer to Revenue Management teams to help ensure a collaborative effort? Our Revenue Management Expert Panel Patrick Wimble - Managing Director, Lightbulb Consulting Theresa Prins - Founder, Revenue Resolutions
A comprehensive approach to revenue management traditionally includes a number of different solutions from PMS, CRS, RMS, rate shopper, and business intelligence tools. But at a time when occupancy levels remain aberrantly low, what other tools, if any, should a revenue manager be aware of that can help increase revenue? The Future of Revenue Management: Total Profit Management This article