According to the latest performance reports, hotel market is experiencing exponential growth. So, you need to be prepared to respond to this positive change by equipping yourself with strategy to increase hotel revenue.
Hotel Revenue Management strategy should be such that it looks at business from both outside in and inside out angles. You need to focus on the tips given below to draft an excellent strategy.
Understand your market: Try to find out who exactly are your competitors and demand drivers as they will have a considerable impact on your revenue management strategy. Start from the basic aspects of when your business started including location demographics, corporate players, transport links, local development, seasonality, event demand, tour operators etc.
Armed with this information, you will be able to know target market, demand patterns, commercial opportunities and challenges. These you can address while designing your strategy.
Know your competition: Remember, your hotel strategy decisions and critical pricing are dependent on the performance of your hotel in comparison to your competitor hotels. You have to be ready for different competitor sets who are classified according to different seasons, mid-week vs. weekend, mid-scale hotel, 4-star hotel, immediate locale etc. For better preparedness, you can always hire a Consultant.
Act like a customer: Even if you have set a rational and strong pricing, you can’t convert potential customers, if they are not able to find you or book you. To know from a customer point of view, you need to think and book like a customer. So, its crucial how your hotel management strategy is seen and purchased by customers. You can find out this by conducting an online and mobile research. Design your strategy based on the results of the survey.
Know your product thoroughly: Your hotels revenue management strategy should be based on a thorough knowledge about your product. You might be having a great product but your competitors are also boasting of their products. So, take help of a Hospitality Management Consultant to make the most of your product.
Teamwork: You need to design an effective strategic approach keeping in mind all the areas like e-commerce, marketing, sales and distribution. This approach will make certain that the customer gets the right message.
Once you adhere to all these tips, you will always come up with a sound revenue management strategy for your hotel.