At The Hotel Adviser, we are experts in developing hotel revenue management strategies that optimise occupancy and profitability. By employing direct booking strategies, demand forecasting, and dynamic pricing, we assist hotels in attracting high-value visitors and decreasing their reliance on online travel agencies. Our data-driven methodology guarantees competitive rates, improved distribution, and increased revenue.
A crowded hotel is not always profitable. The sure sign of a successful hospitality is its revenue. Revenue management is one of the essential parts when predicting customer behavior and selling the product at optimal price everyday. It is well defined by interconnected components, which are:
1. Segmentation of Customer
2. Forcasting Demand
3. Managing Inventory
4. Yield Management
5. All-round Pricing
Revenue management practices are not based on independent factors but are interconnected within the various business aspects, which are:
1. Hotel Overall Marketing Plan
2. Sales
3. Operational Efficiency
4. Customer Service, and
5. Market Dynamics
To ensure revenue management to be effective, these components should work together, align with overall business goals along with external factors like market competition, demand and economic condition.
Key Performance Indicator is a must to have a tool to understand the effectiveness of revenue management strategies. The following KPIs are Occupancy rate, Average daily rate (ADR), Revenue per available room (RevPAR), Total revenue per available room (TRevPAR), Net revenue per available room (NRevPAR), Gross operating profit per available room (GOPPAR).
A revenue manager work is to check these KPIs on regular basis and develop metrics to improve them, else maintain the progress to make hotel business profitable.
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