6 Major Advantages Of Hotel Revenue Management
Have all your business management and marketing strategies gone to vain due to the COVID19 situation? We bet the story of your hotel business has turned the other way round in the past few months. Keeping in mind the major downfall of the Hotel and Travel industries, Outsourcing Hotel Revenue Management for your Hotel will be the smartest move to make. Bigfoot Hospitality is here to help you with the best Hotel Revenue Management Strategies in 2020
In this blog, you’ll learn about the things you are missing out on in terms of boosting your Hotel Business. And the 6 major advantages of Hotel Revenue Management. Let’s create a scenario, wherein all your hotel rooms have been sold out and the last vacant room gets sold out at a decent price. After a while of your last booking, you get a call for a room booking and the customer is willing to pay almost double the price you received from your last booking. Say you get a last minute cancellation or someone doesn’t turn up even after the booking is confirmed. What would you do in such tricky situations? Confused ?
In the simplest words, a Hotel Manager’s goal is to ” deliver the Right Product to the → Right Customer at the → Right Time for the → Right Price through the → Right Channel” – Robert Cross.
Let’s have a look on Advantages you receive on Outsourcing Hotel Revenue Management for your property.
1. Expert Market Understanding
The initial step into result oriented Management of your Hotel, is a deep understanding of your business market. Among the 6 Major Advantages of Hotel Revenue Management for your property, the first mandatory Advantage you gain is a logical and expert understanding of who your customers are, what do they exactly need and most importantly who’s your current market competition. After you’ve analysed the above aspects, you’ll easily be able to make precise decisions, create effective price plans and outline your potential customers for the coming times.
2. Effective Optimization Of Distribution Channels
Choosing the right distribution channel is what a Revenue Management Company will give you expert assistance on. Here, we want the customers looking out for rooms or resorts to find your website and visit you in order to know more about your hotel and to trust your brand. If you’re looking for someone who could do this for you, visit Bigfoot Hospitality now. Listings on major platforms like booking.com, Trivago and many others will help you gain great results and visibility. High resolution images, videos, customer reviews and even short hotel videos is what you must focus on to make a very good presence of your Hotel in these websites. This will prove to be one of the most effective distribution strategies you opt for
3. Value-Based Management of your Hotel’s Revenue
Raising or adjusting the price of a booking is the basic task of a Hotel Revenue Manager. By raising the price the revenue is increased, but this can potentially lead to decrease in the number of bookings. Whereas, it is studied that when the demand is high this is the best move to make. In such times of High Demand there are enough customers potentially willing to pay high rates. This is often misunderstood as raising or lowering the rates, but the key motive here is to turn away less attractive customers for a value based management of the hotel’s revenue. In other situations when the demand is relatively low, the main motive here is to get maximum rooms occupied. Now, the task of the revenue manager is to provide the customers with custom made packages which benefits the Hotel as well as gets maximum bookings confirmed. This also helps your hotel stand out from your competitors.
4. Advanced Pricing Strategy-
The next major Hotel Revenue Management Strategy is to determine the right pricing strategy at the perfect time for good results. This decision is often based on factors like, your target audience, your offerings and demand. For example, if you are confident that your offerings and rates are better as compared to your competitors. Opting for a competitive pricing strategy is the best move. Whereas, if the demand curve is at a low at that time, you must potentially go for a discount strategy to gain maximum occupancy of rooms in your hotel.
5. Hotel Marketing Solutions-
The next Major Advantage Of Hotel Revenue Management outsourcing is precise Hotel Marketing Solutions they offer. Right from choosing the right marketing channels to selecting the right budget for your Hotel Marketing needs, each step plays a vital role for your business. For instance, given the current COVID19 situation, Digital Marketing For Hotels has leveled up and has now become the most effective channel for Hotel Marketing. Bigfoot Hospitality helps you in choosing the best Hotel Marketing tools and strategies to meet your sales and revenue needs.
6. Demand Forecasting –
Hotel Revenue Managers can forecast how a particular month or week may perform in case of revenue ( hotels & rooms ) based on experience, market data research, on what occurred last year, current market demand and competitor position. A revenue manager will not forecast on how many rooms you’ll sell, instead will estimate the demand for your rooms. ( How many rooms will people like to buy). And the most important thing while doing this forecast is to forget how many rooms you actually have. With research and local knowledge, forecast is the most effective strategy of a Revenue Manager and is sure to deliver valuable insights for the Hotels
These were the 6 Major Advantages Of Hotel Revenue Management.
Whether you are a Startup in Hotels and Resorts or already have a decent Hotel or Resort business, Revenue Management and Hotel Marketing will ensure you have a peak in sales and occupancy at all times.