Every day is the right day to do it!
What is Revenue Management?
Ah! Easy question! Everyone is talking about it, and we know it by heart!
The definition is flawless! To say so, Revenue Management seems the easiest thing in the world. But to apply this easy lesson today, in 2017, it is not simple. It requires years of study, preparation, training and experience.
Once everything was more simple: Ms Anna, owner of the hotel “Ai Fiori”, waited for you during the Easter holidays or the long weekend on the 1st May to book your summer holiday of 15-30 days. At that time, yes, it was easier.
Today NO! Today it is not like that any more. They book online, you do not know your customers and their needs, and the stays have become shorter. Translation: Today we need tools, studies and long view. All elements that are acquired with repeated satisfactions and - sometimes - errors, these last rigorously to be corrected as soon as possible.
Let’s then take a step back: try to figure out what Revenue Management is NOT to understand its deeper meaning.
Revenue Management is not:
- Changing rates according to competitors
- “Playing around” with portals
- Lower the price!
Consequently, Revenue Management is:
- Increase prices when and if you can
- “Optimize” the gains based on demand and supply
- A real science, not innate, that you learn!
With reference to the last point we can say that doing Revenue Management is:
- Knowing how to read charts and graphs
- Knowing how to cross-check results
- Knowing how to identify trends
- Knowing when and how to do but above all why to do it
- Knowing when to ask for support when we realize to be insufficient
It requires a method for processing information – the revenues, the historic data of booking, the current booking, the no shows, etc. - and it's needed a method to analyse the data and choose the right strategy at the right time. In other words? It takes years of experience in the field and specialized studies to be able to become an expert in Revenue Management.
BookingOne offers a big data hotel reservation analysis for the Revenue Management and a team with long-time experience to give you a concrete help in maximizing your volume of business at the best price. You can monitor your work and realize when it's time to “correct the roll”, also along the way, to see the results that you would never have dreamed.
- the increase in the employment rate
- the increase in the average revenue per lodging
- the achievement of substantial profit margins.