1) Revenue Managers are NOT magicians
Revenue managers do not just pull numbers out of a hat and hope for the best. They need data to forecast. Without data, they cannot effectively price rooms to sell.
Forecast = historical data + destination historical data + market data
2) Hotels in Lisbon can start increasing rates
From a cup of coffee to a taxi ride, Lisbon is still on average less than half the cost of other popular touristic capitals in Europe. According to Ildefonso Moyano, Revenue Management expert and Partner at Qualis Hospitality, increasing the average room rate in Lisbon will NOT decrease occupancy as commonly believed. From the number of tourist attractions, to being a very safe destination, and the cost of travel - Lisbon is not going to slow down. It's time for hotels to capitalize on this trend.
3) Revenue Management is not just moving your rates up and down
To have an effective revenue manager strategy, a hotel needs to not only focus on rates, but on distribution, inventory controls and marketing.
4) A hotel's competitive set is more complex than you imagined
When determining your competitive set, also take into account a few other techniques to make sure your hotel is covering all the bases -
Booking.com's tool allows users to view the top hotel's their same nationality booked. For example, if you're booking from Spain, you can see the hotels other Spanish travelers booked when visiting Lisbon.
Tripadvisor offers additional choices for travelers who viewed the same hotel.
From HRS you can get information on the cost of a hotel's breakfast, amenities they're offering for free and discounts they're offering to corporate clients.
5) Start using revenue management when you have 0 rooms sold
It makes no sense to increase your rates when you have already sold 90% of your occupancy at lower rates. Start using revenue management from day 1.
6) A good revenue manager does not accept all reservations
A good revenue management strategy suggests to not sell a room today if you can sell that room tomorrow at a higher rate. Sometimes we have to say 'No' to reservations even if we are not fully booked. Hotels have to keep some rooms for the last minute travelers just booking the day before an event.
7) If you are selling to everyone, you are getting no one
Define a good distribution strategy to reach your hotel's target client and reduce the cost. If you focus on a target client, you have a better chance of increasing your rates because you are making an effort to get that client who is willing to pay a little more.
8 ) Revenue Management is led from the top down
A truly effective revenue management strategy is lead by the top management. It must be a mindset of the entire organization and understood by all the employees. The entire company needs to help with sales. Cross selling is key!
The Future of Revenue Management Seminar
In partnership with:
With the support of: