Revenue Management
Revenue Management is a hotelier’s term, used to describe the process by which performance analytics are used to predict online guest behavior in order to provide actionable data which can inform and optimise a hotels pricing and distribution strategy.
Revenue management was pioneered by the airline industry and in basic terms, means selling the right room to the right guest at the right place on the right channel.
Experienced revenue managers us, can forecast and anticipate demand to optimise availability and pricing to lower guest acquisition requests and maximize hotel revenues.
Why is Revenue Management important?
Small hotels and independent properties often do not have the necessary financial resources to employ an experienced revenue manager and therefore are at a competitive disadvantage versus larger resorts.
The power and strategic importance of an effective revenue management and online distribution strategy should not be underestimated, here are some of the core benefits:
Cost Savings
Benefit from years of knowledge and experience from a yield specialist without paying for it!
Increased efficiency
Our Team of experienced yield specialists have developed systems to improve efficiency and reduce stress.
Focus on your core objectives
Revenue Management is very time consuming and is a very specialist area. Outsource this function and focus on your strengths.
Competitive Advantage
Get ahead of your competition by implementing professional yield management and increasing your profitability.
Access to skilled knowledge and expertise
Revenue Management is not just about changing rates; it's about monitoring KPI’s & implementing strategies to maximize your ROI.
Reduced overhead
Accountants and lawyers are often outsourced, why not reduce your overheads by outsourcing your revenue management and let a specialist drive your growth.
Increased Revenue
Using a statistical approach to revenue decision making, our yield specialists can drive revenue and profits to your business.
What is our approach to Revenue Management?
We share the same goal as hotel owners and operators: revenue maximization, and revenue management is one of the best ways to achieve that goal. Central to revenue management is the ability to set the right rates for the right dates, which is done with a combination of statistical and market analysis.
We implement fully customized and dynamic demand-based pricing strategies and rate structures for hotels using software driven algorithms. Our creative but disciplined approach to revenue management, is proven to improve hotel yield and drives impressive results using statistics to highlight demand trends which then inform the overall pricing strategy, which identifies the optimal rates.
However, revenue management is about more than just setting rates, experienced revenue managers should ensure channel distribution limits guest acquisition costs while increasing booking volume ,RevPAR and GopPAR. Revenue decision making should consider competitor intelligence, historical data, market trend analysis, long term growth objectives, while simultaneously focusing on increasing relative market share, margins and maximizing direct bookings. This can be the difference between profit and loss for a hotel.