What are the benefits of revenue management?
Would you like to get the maximum turnover out of your available rooms? But how do you get the most out of your reservations? Revenue management offers the solution! We searched for answers to the most important revenue management questions you may have as a hotel owner and talked to Angelina Motzo, director of marketing, reservations, sales & ICT, at XO Hotels.
What is the purpose of revenue management?
As a hotel owner, you benefit from applying revenue management. With the help of revenue management, the price level of your rooms and the other products you sell is determined. The idea is that your supply is perfectly matched to your demand at all times. The ultimate goal is to achieve the highest possible return and to maximise your revenue.
The trick is to maintain an optimal ratio between your price and occupancy and thus sell your rooms at the maximum price.
What are the advantages of appointing a revenue manager and what are his/her tasks?
Since the focus of the revenue manager is on sales, more attention is paid to everything related to prices and availability. Thus, minor changes in the market are immediately noticed and processed. An employee who does these tasks next to their normal jobfunction quickly sees a barrier to doing anything because other tasks need to be done. Collecting and interpreting data is one of those tasks that is ofter forgotten about.
Revenue management: only for large hotels?
The bigger your hotel, the more complex your needs are. As a large hotel, you reach a wider and more varied audience and there is a greater variety of room types. Then you also have a greater need for flexible and dynamic pricing. A larger hotel therefore benefits from emplying an internal revenue manager. Someone who can make quick decisions in an ever-changing environment.
In a smaller hotel, the focus of the revenue management strategy is mainly on the regular customer base, the prices of the competition and events in the area. These factors are easily monitored with a revenue management system (RMS) that performs automatic analysis and shows the best prices.
Why is a channel manager necessary for good revenue management?
As a hotel, if you work with 2 or more channels, it is best to work with a channel manager. By working with a channel manager, rate parity can be implemented, which means that the same price is shown on all channels. The availability can also be adjusted globally, which prevents overbooking.
Our tool Cubilis offers a direct view on the reservations. This way you can process new reservations and also look up old ones easily.
We highly recommend anyone who works with 2 or more channels to use Cubilis.Angelina Motzo, XO Hotels
Let's get started!
Are you convinced and ready to start with revenue management? Take a look at our connectivity marketplace to see which revenue management systems we connect with.
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