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.
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.
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.
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
- Revfine: 8 Revenue Management Tips for Hotels
- Phocuswire: 4 tips to help hoteliers create an effective distribution strategy
- Xotels: Top Five Revenue Management & Distribution Tips For 2019