How Revenue Management is Important for Hotels
Index
Revenue Management Process Why Revenue Management is Important Challenges in Revenue Management System Features of Revenue Management System Benefits of Revenue Management System for Hotels ◦ It Helps Hotels Lower Cost ◦ Attracting the Ideal Guests ◦ Improves Branding ◦ Price Balancing Who I Am?
Revenue Management Process It is a process of anticipating hotel occupancy and market demand and to determine how it will effect your hotel.
Why Revenue Management is Important Revenue management system for hotels helps in setting the right prices for hotel rooms at the right time. It pulls together data from the hotel, the market and does a general analysis in an efficient and convenient tool.
Challenges in Revenue Management System
Features of Revenue Management System
Actual reservations and pick-up Accurate monitoring of your competitors’ rates and the events Pick-up per segment and per day (realized and forecasted with unconstrained demand) Follow the performance of each of the forecasts and recommendations Set your budgets and targets (Occupancy, ADR, Customer Segmentation)
Benefits of Revenue Management System for Hotel
It Helps Hotels Lower Cost Attracting the Ideal Guests Improves Branding Price Balancing
It Helps Hotels Lower Cost Having a revenue management strategy in place not only helps determine the best rate to sell rooms at, it also enables the hotel to plan ahead by optimizing manpower for periods of higher demand and avoiding over-staffing during periods of lower demand.
Attracting the Ideal Guests Revenue managers help hotels better identify the right customers who can provide the greatest long-term value for the property’s future. In order to identify these guests, hotels need to evaluate all guest spending activities can help properties get a clearer picture of a guest’s preferred activities and their overall value.
Improves Branding Proper utilization of revenue management strategies can play a big role in increasing a hotel’s bottom line.
Price Balancing A price balancing strategy is the best way to maximize the revenue. It includes how to set a correct price strategy, how to use various distribution channels to manage price in a right direction.
Who I Am? Juan Antonio Manrique Long Beach CA who currently lives in California provides the important tips for hotel revenue management. Â