
Managing a profitable hotel is akin to a theatrical production. The hotel staff serve as stagehands and performers while the guests are the audience. Every successful stage production requires cooperation among everyone involved.
It’s no different in the hotel business. The most profitable hotels create a culture of cooperation among the various departments and use a revenue management framework as the guiding star. The revenue manager is the director and creates a strong business foundation for the property.
Eliminate the piecemeal approach of manual price adjustments, channel reallocation, and other stand alone tactics for the guiding strategy of the revenue management framework.
This guidance can uncover previously “hidden business” and add thousands of Euros to the property’s balance sheet each year.
It’s possible because current technology offers hoteliers incredible insights with up-to-the-minute data to guide dynamic pricing and optimize the room rates. Yet, that’s only one piece of the revenue management puzzle.
The company Franco Grasso has worked with over 2500 properties across over thirty countries. With more than twenty years of revenue management consulting, they’ve guided hoteliers into profitable business tactics and helped them transition into an online, data-driven, and profitable approach.
There’s more than one path to adopting a revenue management framework. Many hoteliers choose from one or two of these paths initially.
- Data
- Technology
- Brand Reputation
- Competitive Analysis
- Channel Management
- Starting and Dynamic Rates
Revenue management is a powerful, flexible business framework grows hotel profitability and improves the guest experience.
Today’s Revenue Management
Some hoteliers have labeled revenue management as a tactic for being a low-cost leader. Nothing could be further from the truth.
Instead, revenue management assesses data from different sources to improve forecasting. Revenue managers use Revenue Available Per Room (REVPAR) as a key data point to guide pricing decisions.
Before anyone can set competitive prices, it’s essential to know the customer base.
- Demographics
- Travel purpose
- Hotel location
- Booking behavior
Revenue management can help every hotel become more profitable, and understanding the core clientele can improve the guest experience.
Develop a Successful Hotel Revenue Management Framework
The most successful hotel professionals adapt to changing markets and expectations. Revenue management helps modernize business practices and discover hidden business in plain sight.
It uses REVPAR as the core foundation to assess profitability and makes daily micro-adjustments because everyone knows the hotel business is one of constant change.
1- Don’t Forget the Weather
It doesn’t take a raging flood to affect the hotel business. Even chilly weather at Easter can mean fewer travelers to Rome at one of its biggest holidays, and a lack of winter snow impacts ski resorts.
Revenue management accounts for past occupancy rates, competitor research, weather forecasts, and more to make pricing decisions.
2- The Hotel’s Online Reputation Uncovers Hidden Business
Dr. Franco Grasso has found that strategic revenue management uncovers “hidden business” thanks to online visibility.
He says, “hidden business, online and off-line work-of-mouth triggered by a favorable quality/price relationship and generated mainly directly or indirectly by online channels.”
Dr. Grasso sees each hotel room as an income and business opportunity. He leans on his decades of experience in the revenue management space to recommend specific tactics. For example, use available software to make an interesting offer within a limited time.
For instance, a hotel can make a specific offer for one week to a group of tour operators. Hoteliers know they ask for low rates, so why not offer them an attractive one?
When hoteliers make such offers strategically, they cover their variable costs and can give the hotel a bump in online rankings during the busy season when visitors pay higher rates. This strategy uncovers hidden business for all hotels. Plus, it’s more effective and less expensive than trade shows.
Take a seasonal hotel that’s only open a few weeks a year. Traditionally, hotels may have decided it’s only worth opening for 3-4 months because they’re at the seashore or high in the mountains. However, this is a limited view of what’s possible, costing hotels thousands in unrealized potential.
Such hotels invariably find hidden business when they implement revenue management. One example is opening earlier than “just in time.” Opening a few weeks earlier and offering rooms at enticing rates can bring guests in who leave positive reviews and bump visibility for the property. That approach allows the hotel to raise rates and still attract guests as the season gets busier.
The revenue management framework extends the season by two to five months or even longer for some resort hotels. Strategically managing the property’s online visibility is at the heart of revenue management and routinely finds new business.
3- Create a Revenue Consortium
Everyone benefits when hotels share ideas and pool resources to promote the region. Dr. Grasso experimented with a small group of hotels in the Marche district of Italy and other areas. These are provincial areas not known for their eagerness to embrace change. However, Dr. Grasso encouraged a consortium with each hotel implementing revenue management principles. They discovered the consortium encouraged:
- Guests could enjoy longer or more frequent stays
- Hotels experience higher occupancy rates at a greater profit
- Services increased
As the area’s reputation grows, the consortium has more contractual influence over airlines, DMOs, political institutions, and others. In other words, it enlarges the pie so everyone benefits. The foundation of such a collaboration is revenue management.
4- Improve Cross-Departmental Collaboration
Dr. Grasso once settled a dispute at a hotel in Northern Italy. Several managers and department heads found their responsibilities overlapped, making owning specific invoices and profits difficult. This is common in hotels without revenue management.
Within the revenue management framework, the revenue manager acts as the play’s director and brings all the departments together. With collaboration, there’s no rogue manager overselling too many rooms or having the front desk staff surprised by marketing promotions. The revenue manager coordinates the data to make the next logical step.
5- Find a Balance
Spillage, spoilage, and overbooking are a problem for many hotels. Preventing these requires sharp inventory management and dynamic pricing for higher hotel profits. Hotel professionals can work together to create packages, plan online promotions, and review group sales contracts. The hotel’s revenue manager guides the pricing and distribution plan.
Some Hotels Are Easier Ideal Candidates for Revenue Management
While revenue management can work for all types of hotels, there is an “ideal.”
“A 4-star hotel, resort, or in an art city, possibly near the centers of interest (beach, ski slopes, historical center..), without a traditional restaurant but with a restaurant – bar, with around 70 rooms, without a mini-bar and with a floor distributor.” Franco Grasso Of course such a hotel gets great results with revenue management.
However, a hotel is a hotel, and the grass isn’t always greener. Even a 4-star property in Rome has concerns. For one, there’s a lot of competition from surrounding properties. How can the hotel stand out online? Then, the fixed costs of such a hotel are higher than those of a similar property in a less visited city.
No matter the hotel, revenue managers focus on creating occupancy rates at the best rate for that day. It’s a data-driven approach requiring current data, analysis skills, and cooperation of departments. Together, this creates an environment for a solid business foundation and profitable hotel.
Final Thoughts
Revenue management harnesses the data and ties it to business results. More than a plug-and-play solution, a revenue manager can create a strategic framework that benefits your specific property.
Check out also the Ten Revenue Management Tips for Hotels and start improving your hotel’s profitability today.
ADVERTISEMENT:
Hello, para pengemar slots Pernah denger istilah “slot demo”? Kalau belum, bersiaplah jatuh hati sama program ini. slot gaco merupakan mesin slot yang sering kasih kemenangan. Yup, mesin-mesin ini bisa disebut sebagai jagoannya tuk bawa come back hasil. tapi, cemana sih caranya jumpain raja lot yang benar? Santai Bro and Sis, kita bahas tenang saja di sini
Games tergaco saat ini satu-satunya di Indonesia hanya di yang memberikan return terbesar
Daftarkanlah dengan di :
Informasi mengenai KING SLOT, Segera Daftar Bersama king selot terbaik dan terpercaya no satu di Indonesia. Boleh mendaftar melalui sini king slot serta memberikan hasil kembali yang paling tinggi saat sekarang ini hanyalah KING SLOT atau Raja slot paling gacor, gilak dan gaco saat sekarang di Indonesia melalui program return tinggi di kingselot serta pg king slot
slot demo gacor
slot demo gacor permainan paling top dan garansi imbal balik hasil besar bersama kdwapp.com
akun demo slot gacor
akun demo slot gacor permainan paling top dan garansi imbal balik hasil besar bersama kdwapp.com
akun slot demo gacor
akun slot demo gacor permainan paling top dan garansi imbal balik hasil besar bersama kdwapp.com
akun demo slot pragmatic
akun demo slot pragmatic permainan paling top dan garansi imbal balik hasil besar bersama kdwapp.com
akun slot demo pragmatic
akun slot demo pragmatic permainan paling top dan garansi imbal balik hasil besar bersama kdwapp.com
akun slot demo
akun slot demo permainan paling top dan garansi imbal balik hasil besar bersama kdwapp.com
akun demo slot
akun demo slot permainan paling top dan garansi imbal balik hasil besar bersama kdwapp.com
slot demo gacor
slot demo gacor permainan paling top dan garansi imbal balik hasil besar bersama jebswagstore.com
akun demo slot gacor
akun demo slot gacor permainan paling top dan garansi imbal balik hasil besar bersama jebswagstore.com
akun slot demo gacor
akun slot demo gacor permainan paling top dan garansi imbal balik hasil besar bersama jebswagstore.com
akun demo slot pragmatic
akun demo slot pragmatic permainan paling top dan garansi imbal balik hasil besar bersama jebswagstore.com
akun slot demo pragmatic
akun slot demo pragmatic permainan paling top dan garansi imbal balik hasil besar bersama jebswagstore.com
akun slot demo
akun slot demo permainan paling top dan garansi imbal balik hasil besar bersama jebswagstore.com
akun demo slot
akun demo slot permainan paling top dan garansi imbal balik hasil besar bersama jebswagstore.com
slot demo gacor
slot demo gacor permainan paling top dan garansi imbal balik hasil besar bersama demoslotgacor.pro
akun demo slot gacor
akun demo slot gacor permainan paling top dan garansi imbal balik hasil besar bersama demoslotgacor.pro
akun slot demo gacor
akun slot demo gacor permainan paling top dan garansi imbal balik hasil besar bersama demoslotgacor.pro
akun demo slot pragmatic
akun demo slot pragmatic permainan paling top dan garansi imbal balik hasil besar bersama demoslotgacor.pro
akun slot demo pragmatic
akun slot demo pragmatic permainan paling top dan garansi imbal balik hasil besar bersama demoslotgacor.pro
akun slot demo
akun slot demo permainan paling top dan garansi imbal balik hasil besar bersama demoslotgacor.pro
akun demo slot
akun demo slot permainan paling top dan garansi imbal balik hasil besar bersama demoslotgacor.pro
slot demo gacor
slot demo gacor permainan paling top dan garansi imbal balik hasil besar bersama situsslotterbaru.net
akun demo slot gacor
akun demo slot gacor permainan paling top dan garansi imbal balik hasil besar bersama situsslotterbaru.net
akun slot demo gacor
akun slot demo gacor permainan paling top dan garansi imbal balik hasil besar bersama situsslotterbaru.net
akun demo slot pragmatic
akun demo slot pragmatic permainan paling top dan garansi imbal balik hasil besar bersama situsslotterbaru.net
akun slot demo pragmatic
akun slot demo pragmatic permainan paling top dan garansi imbal balik hasil besar bersama situsslotterbaru.net
akun slot demo
akun slot demo permainan paling top dan garansi imbal balik hasil besar bersama situsslotterbaru.net
akun demo slot
akun demo slot permainan paling top dan garansi imbal balik hasil besar bersama situsslotterbaru.net
situs slot terbaru
situs slot terbaru permainan paling top dan garansi imbal balik hasil besar bersama situsslotterbaru.net
slot terbaru
slot terbaru permainan paling top dan garansi imbal balik hasil besar bersama situsslotterbaru.net
merek 88 permainan paling top dan garansi imbal balik hasil besar bersama merek88.net
merek 88 permainan paling top dan garansi imbal balik hasil besar bersama merek88.com
mantan99 permainan paling top dan garansi imbal balik hasil besar bersama mantan99.asia
mantan88 permainan paling top dan garansi imbal balik hasil besar bersama mantan88.asia
maksimal88 permainan paling top dan garansi imbal balik hasil besar bersama maksimal88.biz
maksimal88 permainan paling top dan garansi imbal balik hasil besar bersama maksimal88.asia
liburan88 permainan paling top dan garansi imbal balik hasil besar bersama liburan88.com
indodax88 permainan paling top dan garansi imbal balik hasil besar bersama indodax88.org
indah99 permainan paling top dan garansi imbal balik hasil besar bersama indah99.asia
indah88 permainan paling top dan garansi imbal balik hasil besar bersama indah88.asia
ikn88 permainan paling top dan garansi imbal balik hasil besar bersama ikn88.asia
ibukota88 permainan paling top dan garansi imbal balik hasil besar bersama ibukota88.com
huawei88 permainan paling top dan garansi imbal balik hasil besar bersama huawei88.asia
hot888 permainan paling top dan garansi imbal balik hasil besar bersama hot888.asia
hot88 permainan paling top dan garansi imbal balik hasil besar bersama hot88.sale
dingin88 permainan paling top dan garansi imbal balik hasil besar bersama dingin88.net
citra88 permainan paling top dan garansi imbal balik hasil besar bersama citra88.asia
binance88 permainan paling top dan garansi imbal balik hasil besar bersama binance88.net
best99 permainan paling top dan garansi imbal balik hasil besar bersama best99.info
best88 permainan paling top dan garansi imbal balik hasil besar bersama best88.asia
tradisional 88 permainan paling top dan garansi imbal balik hasil besar bersama tradisional88.net
tradisional 88 permainan paling top dan garansi imbal balik hasil besar bersama tradisional88.com
tombol88 permainan paling top dan garansi imbal balik hasil besar bersama tombol88.org
tombol88 permainan paling top dan garansi imbal balik hasil besar bersama tombol88.net
survey88 permainan paling top dan garansi imbal balik hasil besar bersama survey88.net
survey88 permainan paling top dan garansi imbal balik hasil besar bersama survey88.com
start88 permainan paling top dan garansi imbal balik hasil besar bersama start88.org
start88 permainan paling top dan garansi imbal balik hasil besar bersama start88.asia
obatkuat88 permainan paling top dan garansi imbal balik hasil besar bersama obatkuat88.net
obatkuat88 permainan paling top dan garansi imbal balik hasil besar bersama obatkuat88.com
mcb88 permainan paling top dan garansi imbal balik hasil besar bersama mcb88.info
mcb88 permainan paling top dan garansi imbal balik hasil besar bersama mcb88.asia
master99 permainan paling top dan garansi imbal balik hasil besar bersama master99.biz
master888 permainan paling top dan garansi imbal balik hasil besar bersama master888.asia
master88 permainan paling top dan garansi imbal balik hasil besar bersama master88.asia
live88 permainan paling top dan garansi imbal balik hasil besar bersama live88.bio
live88 permainan paling top dan garansi imbal balik hasil besar bersama live88.asia
libra88 permainan paling top dan garansi imbal balik hasil besar bersama libra88.net
kompresor88 permainan paling top dan garansi imbal balik hasil besar bersama kompresor88.net
kompresor88 permainan paling top dan garansi imbal balik hasil besar bersama kompresor88.com
kesimpulan88 permainan paling top dan garansi imbal balik hasil besar bersama kesimpulan88.net
kesimpulan88 permainan paling top dan garansi imbal balik hasil besar bersama kesimpulan88.com
kapasitor88 permainan paling top dan garansi imbal balik hasil besar bersama kapasitor88.net
kapasitor88 permainan paling top dan garansi imbal balik hasil besar bersama kapasitor88.com
kacamata88 permainan paling top dan garansi imbal balik hasil besar bersama kacamata88.net
kacamata88 permainan paling top dan garansi imbal balik hasil besar bersama kacamata88.com
jamu88 permainan paling top dan garansi imbal balik hasil besar bersama jamu88.info
jamu88 permainan paling top dan garansi imbal balik hasil besar bersama jamu88.asia
jam88 permainan paling top dan garansi imbal balik hasil besar bersama jam88.info
jam88 permainan paling top dan garansi imbal balik hasil besar bersama jam88.asia
follow88 permainan paling top dan garansi imbal balik hasil besar bersama follow88.org
follow88 permainan paling top dan garansi imbal balik hasil besar bersama follow88.net
dinamo88 permainan paling top dan garansi imbal balik hasil besar bersama dinamo88.net
dinamo88 permainan paling top dan garansi imbal balik hasil besar bersama dinamo88.info
baterai88 permainan paling top dan garansi imbal balik hasil besar bersama baterai88.net
baterai88 permainan paling top dan garansi imbal balik hasil besar bersama baterai88.com
miegacoan permainan paling top dan garansi imbal balik hasil besar bersama miegacoan.life
miegacoan permainan paling top dan garansi imbal balik hasil besar bersama miegacoan.asia
gacoan permainan paling top dan garansi imbal balik hasil besar bersama gacoan.org
gacoan permainan paling top dan garansi imbal balik hasil besar bersama gacoan.asia
website88 permainan paling top dan garansi imbal balik hasil besar bersama website88.org
waweb88 permainan paling top dan garansi imbal balik hasil besar bersama waweb88.net
waweb88 permainan paling top dan garansi imbal balik hasil besar bersama waweb88.com
translate88 permainan paling top dan garansi imbal balik hasil besar bersama translate88.net
translate88 permainan paling top dan garansi imbal balik hasil besar bersama translate88.com
tempur888 permainan paling top dan garansi imbal balik hasil besar bersama tempur888.info
tempur888 permainan paling top dan garansi imbal balik hasil besar bersama tempur888.asia
tambang99 permainan paling top dan garansi imbal balik hasil besar bersama tambang99.news
tambang99 permainan paling top dan garansi imbal balik hasil besar bersama tambang99.asia
support88 permainan paling top dan garansi imbal balik hasil besar bersama support88.org
support88 permainan paling top dan garansi imbal balik hasil besar bersama support88.net
support88 permainan paling top dan garansi imbal balik hasil besar bersama support88.asia
sogoslot88 permainan paling top dan garansi imbal balik hasil besar bersama sogoslot88.asia
siap88 permainan paling top dan garansi imbal balik hasil besar bersama siap88.news
siap88 permainan paling top dan garansi imbal balik hasil besar bersama siap88.asia
rog88 permainan paling top dan garansi imbal balik hasil besar bersama rog88.asia
rog77 permainan paling top dan garansi imbal balik hasil besar bersama rog77.info
pt88 permainan paling top dan garansi imbal balik hasil besar bersama pt88.info
pt88 permainan paling top dan garansi imbal balik hasil besar bersama pt88.asia
pln88 permainan paling top dan garansi imbal balik hasil besar bersama pln88.biz
pln88 permainan paling top dan garansi imbal balik hasil besar bersama pln88.asia
oke99 permainan paling top dan garansi imbal balik hasil besar bersama oke99.asia
oke88 permainan paling top dan garansi imbal balik hasil besar bersama oke88.asia
mining88 permainan paling top dan garansi imbal balik hasil besar bersama mining88.org
livechat88 permainan paling top dan garansi imbal balik hasil besar bersama livechat88.info
livechat88 permainan paling top dan garansi imbal balik hasil besar bersama livechat88.asia
listrik88 permainan paling top dan garansi imbal balik hasil besar bersama listrik88.org
listrik88 permainan paling top dan garansi imbal balik hasil besar bersama listrik88.info
listrik88 permainan paling top dan garansi imbal balik hasil besar bersama listrik88.asia
freeport88 permainan paling top dan garansi imbal balik hasil besar bersama freeport88.net
freeport88 permainan paling top dan garansi imbal balik hasil besar bersama freeport88.com
free88 permainan paling top dan garansi imbal balik hasil besar bersama free88.org
free88 permainan paling top dan garansi imbal balik hasil besar bersama free88.asia
domain88 permainan paling top dan garansi imbal balik hasil besar bersama domain88.org
domain88 permainan paling top dan garansi imbal balik hasil besar bersama domain88.asia
dokter888 permainan paling top dan garansi imbal balik hasil besar bersama dokter888.net
dokter888 permainan paling top dan garansi imbal balik hasil besar bersama dokter888.asia
bmkg88 permainan paling top dan garansi imbal balik hasil besar bersama bmkg88.net
bmkg88 permainan paling top dan garansi imbal balik hasil besar bersama bmkg88.com
asn88 permainan paling top dan garansi imbal balik hasil besar bersama asn88.org