Revenue Management is trendy, and it’s good, it’s useful! But let’s face it: a yield strategy cannot be improvised. It must observe certain codes if it is to be effective and relevant.
What are the secrets to a successful revenue management strategy in a hotel?
Let’s discover it, together….
Essential, but often overlooked due to lack of time, resources or skills. Without a prior study of your hotel’s DNA, it is difficult (if not hazardous) to implement a revenue management strategy.
For this, the analysis of the context seems obvious (Market, positioning etc…), but what is essential: to make the historical data of your hotel speak for itself.
This is the first key to a successful yield strategy.
a) Analyze expectations:
When will bookings start for a date? When will the peak be reached? Is it wise to set up an EarlyBooking offer? etc…
b) Analyze typical days:
What are the high-potential dates? Is it wise to make promotions on Tuesdays? What is the average length of stay on weekends? What is the price plan that works best on Sundays etc…
c) Analyze cancellations:
What is the probability that a reservation made more than 45 days ago will be cancelled? What type of rooms is the least cancelled? On what date is it advisable to overbooking? etc…
(d) Analyze nationalities:
What is the most popular type of room in Switzerland? Which nationality most often cancels? What is the reservation window for Australians or Japanese? etc…
There are several other areas that will help you to know the DNA of your institution.
At SPOTPILOT, we like these two quotes, which are part of
of our corporate culture:
The devil hides in the details.Not everything that shines is always gold.
Discover more about the yield management strategy :