Discover our tips to optimise your revenue management strategy.
The past year has been a rollercoaster for you and countless other accommodation owners, a year like never before. A year where you had the chance to review your pricing strategy to keep your occupancy rates high and your losses limited.
Did you know that the decisions you made during the COVID-19 period will have a clear impact after the crisis? We would like to share with you 4 tips to optimise your revenue management strategy so you're ready when tourism revives again.
Tip 1: Use a consistent price strategy
Hoteliers and B&B owners worldwide saw their occupancy rates drop. Of course, this has nothing to do with too expensive prices, but with unforeseen circumstances.
However, it is important to offer your rooms at the right rate, even in a crisis period. Due to the strict regulations, you can offer fewer services, for example, the wellness centre that remains closed and breakfast that is served in the room. You should adjust your price accordingly. Communicate to your customers why your price is now a little lower. This way, you can easily return to your normal rate when you can offer all services again.
Try to avoid high price fluctuations, a big price cut arouses suspicion and it will be more difficult to charge a higher price again afterward. A sharp price increase is also less likely to be accepted by customers.
Tip 2: Give discounts and extras at the right time.
Discounts and extras can be interesting, but there needs to be a clear timeframe and reason for them. For example, you can give discounts for Mother's or Father's Day soon. For the customer, it is then immediately clear why there is a lower rate at that time.
Both during and after the crisis, it remains interesting to offer arrangements. You can also provide extras for specific occasions such as a wedding anniversary. So keep doing this and show your customers that you think of them during special moments.
Tip 3 : Compete better with a higher value than with a lower price
Travellers are now eager to go on a trip again and will have to make a choice from the large selection of hotels, B&Bs and holiday homes. Price will be a less important factor than the quality of the services and products offered. Customers are willing to pay more for a quality stay.
"A price war is never a good idea. Your guests will enjoy a higher experience more than a lower price."
Tip 4: Invest in direct bookings
Our research has shown that direct bookings were on the rise during the corona crisis. Travellers preferred to book directly with the hotelier, rather than via an OTA. A good thing for you, because direct bookings are commission-free and very important for your returns.
It is therefore crucial that people immediately find the right way on your website to book their stay directly with you. Our software offers the following features to make this possible:
- Handy price comparison tool
Guests see at a glance the different rates you charge, directly and via online platforms. This way, they can see that booking directly is the cheapest option.
Find out everything about our ratebox.
- Smooth booking process
Ensure a smooth and secure booking process. This is possible thanks to the integration of important payment partners.
Discover all integration possibilities.
- Pay attention to design and user-friendliness.
With our booking engine, you can optionally choose specially designed web templates so that your own website has a professional look and is also mobile-friendly.
Find out how we can take your website to the next level.
What are you waiting for?
The easing of restrictions in connection with Covid is slowly approaching. So it's time to get your pricing strategy right and get ready for a complete reopening.
Request a free trial for one or more of our software solutions and get started right away.