5 Tips for Successful Hotel Revenue Management
Ask any industry expert about hotel management and they’ll likely sum it up in one phrase: hotel revenue management is about attracting the right guest at the right time to the right property.
Sounds simple, right?
Not exactly.
Yes. The ultimate goal of hotel revenue management is to create a competitive rate for your hotel room so the property maximizes on both slow and high season. But doing that requires determining the right room rates, best pricing strategy and maintaining proper data to determine if your strategy is working.
While there are a lot of moving parts to successful hotel revenue management, it can be done.
Here are five tips to ensure success:
Remain Flexible
What may have worked in the past might not work in the future. That’s the motto when it comes to successful hotel revenue management. Customer behaviors change like the seasons. A savvy hotel owner adjusts accordingly. Keeping a close eye on data is the best way to spot a change in customer behavior. More direct bookings? Increased mobile traffic? Or perhaps your demographic is changing from millennial to boomers. By spotting these trends early, you can adjust your marketing accordingly.
Data is King
Of course spotting trends requires maintaining accurate data. The key is to determine what data you should record. Will it be customer satisfaction, food quality or speed of service? Determining how the data will be collected is also important. Comment cards? Exit questionnaires? Or an email 24 hours after checkout? The results derived from this data can dictate future decisions.
Find the Right Technology
There’s a multitude of revenue management systems and software on the market. The right software can take numerous variables like past occupancy rates, sales, and market share information and integrate it with external factors like competitor rates and holiday/event information to determine the best course of action for pricing and rates.
Maximize your Web Experience
For some time, we’ve known the majority of travelers book their hotel rooms online. That means a hotel’s web experience is paramount. Routine audits of your web content for accuracy can ensure users are getting the most up to date information about properties. Not all web users are the same. Adhering to the Americans with Disabilities Act (ADA) 508 web compliance rules will ensure that all audiences can use your website. And don’t forget about the mobile experience. More than one-third of people now use a mobile device to book a hotel room, according to a Travel Flash Report by Criteo. Designing a responsive website that adjusts to various size screens can mean retaining a customer or not.
Find the Right Manager
Even the best technology can’t replace human instincts. A good hotel revenue manager utilizes data to manage the everyday workings of the hotel. They can communicate the findings to various departments and assist them in improving their role in raising profits. Communicating data findings and goals across the board from general manager to marketing director can make a big impact on the bottom-line.