Over the years, the hotel industry has become truly competitive. It is challenging for hotels to survive and stand ahead among their competitors. Being it a big concern for the industry and with constantly emerging challenges hoteliers these days face a common problem of managing their revenue.
Revenue management acts as the backbone of a fruitful hotel business. Hoteliers often opt for everything like a channel manager for online bookings, a booking engine for direct bookings, and a property management system for streamlining hotel operations.
But, what about revenue management in hotels?
Either they have to:
go to a revenue management company OR
buy a software OR
hire a revenue manager.
But, why would they do this?
Not all hotels in the industry have a budget to hire a revenue manager, right?
So, you can Do It Yourself!
All you need is proper guidance and the right strategies to grow your business correctly.
A similar problem was faced by many of our clients.
With being low on budget, many have wished to go for a DIY approach to increase their revenue and was looking for a way to do so.
That’s why when we launched our eBook on hotel revenue management strategies, thousands of hoteliers came ahead to learn and apply the best suitable ones for their business.
Why and how we came up with a guide to hotel revenue management?
eZee is one of the few complete hospitality IT solutions providers in the world who offers best solutions. Our aim is to not only provide solutions but also try to come up with something which helps hoteliers’ operations to become easy.
Often many of our existing clients came to us asking for solution on how to grow their revenue?
All we could offer them were few tips and tricks on this as and when they asked for.
BUT, there wasn’t any steadfast solution which we could provide to our clients on this problem.
Thinking a lot on this, we studied in-depth about the hotel industry’s pain points and recognized the need of a hotel revenue management strategy.
This lead us to craft one such guide that would help hoteliers in managing their revenue effectively.
Our main purpose to offer the eBook was that it should benefit all kinds of hotel business; be it small, medium or large scale and help them to grow their own revenue at no extra cost.
What does the hotel revenue management eBook contain?
It comprises of:
- Assured strategies for your revenue management
- Examples of how to implement those strategies
- Useful tips from industry experts
Effective hotel revenue management strategy helps hoteliers to increase their profits by selling their property’s perishable inventory to the right guests at the right time.
However, most hotels having a business scale of small to midsize might not be able to afford a revenue manager or even have enough financial resources to do so.
As said, doing an ample amount of research, we came up with a list of strategies to provide to the hoteliers.
A couple of months after the launch of this eBook, we got in touch with around 50+ hoteliers who had gained access to the guide, and asked them for their feedback.
And almost all of them responded on a positive note, indicating the hike in revenue they had received using the eBook.
Let me share with you some of the most liked strategies by the hoteliers:
1. Having more OTA connections
Choose the right OTAs for your property.
Remember: Never limit yourself to only 2-3 OTAs.
For example: Many of our customers were initially listed only on 1 OTA. But they now got listed on more than 3 OTAs resulting to better online presence after applying this strategy.
2. Smart inventory distribution
Adopt a uniform distribution method through a channel manager and list all your inventories on all channels to get more bookings.
For instance: The hotels which previously used to worry about overbookings or rooms remaining underbooked, now seem to be stress free with inventory being managed centrally through a uniform distribution.
3. Yield management
Often hoteliers get confused and consider Yield Management = Revenue Management.
However, that’s a myth.
There’s a very thin line of difference between the two. Yield management is not the same, but a subset of hotel revenue management.
With yield management strategy, it helps hoteliers to determine the right hotel room price i.e increase room rates when the occupancy increases and vice versa.
A hotel says, “Adapting this strategy has helped us to make the most revenue even in the off-peak seasons by selling the hotel inventory at the best price in the market.”
To know more about this you can refer our blog on yield management in hotel industry, which has helped many hoteliers to clear their concept of yield management and revenue management.
4. Pricing strategies
The ultimate goal to achieve:
- Increased occupancy with high revPAR and
- High revPAR with maximized yield
should be through various pricing strategies such as;
- Packages – A package is a room rate clustered together with other products and services.
- Discounted rates – Sell your rooms on a discounted price for a short period.
- Loyalty programs – It is the best way to get business from repeat guests by offering attractive rewards to increase your sales.
and many more…
P.S: Island Hop Resort has tried with discounted rates and loyalty programs strategy for now, that has definitely helped them to gain better profits!
To know more on this you can refer our blog on hotel pricing strategies for 2021!
How can the hotel revenue management guide benefit YOU?
Effective hotel revenue management strategies lead to,
- A successful hotel business.
- A headway among your competitors
- A steady flow of income regardless of any factor
- An idea of how to manage revenue flow
Did you know?
8 out of 10 hotels don’t consider revenue management and lose 30% of its revenue?
We’re sure you don’t want to be one of them! Right?
To sum up
On launching the hotel revenue management eBook, we received great responses from our clients with more than 3000+ downloads in just a month, which definitely paid off for all our efforts.
Key points:
- Hotel revenue management is considered to be as important as a hotel’s day to day operations.
- It helps to achieve higher profits.
- Transforms your hotel business.
However there are still many hoteliers who are struggling with implementing these strategies and increasing their revenue effectively. Consider this as a shout out to them for downloading this guide and help them manage their hotel revenue.
Besides, if this still doesn’t help you achieve the desired results, hiring an expert revenue and marketing management service provider would work wonders.
