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4 Revenue Management & Distribution Tips for 2019

Posted on Jun 6, 2019 7:57:00 AM

What is revenue management? It is a sales process that allows for a revenue strategy to optimize sales and predict consumer demand in order to sell businesses at the right price, at the right time, to the right people.


What is Distribution? Distribution involves determining which channels a hotelier should sell their rooms on based on the cost of acquisition of each channel. The right channel will drive business more cost-efficiently, with low acquisition to maximize profitability.

 

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Photo by Carlos Muza on Unsplash


Explore these 4 top tips we have to keep you one step ahead with a competitive streak.


Expand your Exposure & Reach

Be present. Make sure your potential customers can find you everywhere. With travelers embracing various technology and with the growing mix of direct and indirect channels of booking “consumers now have the ability to search and find information” says Ben Alves, Vice President and General Manager of the Americas for Sabre Hospitality Solutions.


“We have data that shows consumers visit a minimum of 24 websites or search functions before making a decision.”

— Ben Alves, Vice President and General Manager of the Americas for Sabre Hospitality Solutions.


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Photo by Andrew Neel on Unsplash


Offer Direct Booking Incentives

Be brave on selling value. Value-added services can develop customer loyalty and bring longer term values to your hotel. This leaves room for repeat business. Amp up the attraction of direct booking with incentives that justify your prices while making them feel valued to encourage improved conversion.



Collect Relevant Data

Data collation is an important part of defining your revenue management strategy, yet identifying the right data and the right tools to help you analyze are equally important in effectively making decisions. Ensure your hotel uses consistent methods across the board for data analysis and feedback before setting a strategy. Also ensure the data collected is equally relevant for your purposes and is as up-to-date as possible due to changing customer habits.

 

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Photo by runnyrem on Unsplash


Lockdown on Cancellation Policies

Package deals can offer a way to hound down on cancellation policies to a greater extent, due to binding value-added services or accompanying services that make it difficult for the hotel booking to be canceled. The importance of lowering cancellation rates is directly affected to forecasting, which can set your strategy askew if it is not collecting the best data. To maximize profits, integrate package rates or deals as part of your revenue strategy.


Package travelers typically book further in advance, stay longer and are less likely to cancel due to the non-refundable flight element, which helps revenue managers to take more balanced and far-sighted decisions and forecast with higher accuracy.

— Expedia Survey, Xotels

 

 


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Topics: Hotel Revenues

About Blog Author

hi Inc. Content Editor delivering hospitality technology news on the travel & tourism industries. Staying ahead of what is happening & trending. Providing hoteliers with actionable insights and helpful tips to help them enhance guest engagement and increase incremental revenue.