HOW HAS
REVENUE
MANAGEMENT
SHIFTED FROM
ENSURING ROOM
OCCUPANCY TO
GETTING THE
RIGHT PERCENTAGE
OF ROOMS
FROM SPECIFIC
CHANNELS
FOR THE BEST
POSSIBLE RATES
AND PROFIT?
112 ILHA
The mission is to sell as many rooms as
possible, but, at the best rates possible;
with the ultimate focus on the bottom
line. The one key area to drive profitability
is to steer guests away from Online Travel
Agencies (OTAs) and book directly with
the hotel. This increases brand recall,
loyalty and generates repeat business. It
also offers a unique platform to market
the hotel via direct communication
channels with the customer, offer deals
and upsell additional services or room
upgrades.
IS THERE A METHODOLOGY THAT
REVENUE MANAGERS FOLLOW TO
DETERMINE THE OPTIMUM COST
OF BUSINESS ACQUISITION FROM
EACH OF THESE CHANNELS?
We are increasingly working out new and
improved ways to combine KPIs with
specific data types. Price Optimization
Models factor in three critical pricing
elements: pricing strategy, the value of
the product to both buyer and seller, and
tactics that manage all elements affecting
profitability. We also believe in the
forecasting process that keeps a track of
acquiring new businesses and its cost. This
process assists in making more measured
financial decisions, better preparation
for any financial problems and adjusts to
maximize revenue and minimize damage.
IN A REVENUE-FOCUSED
INDUSTRY, HOW DO REVENUE
MANAGERS KEEP TRACK OF
WHERE A BUSINESS CAME FROM
AND HOW MUCH IT COST TO
SECURE?
Before we start analyzing data, it’s crucial
to know where is my business coming
from, and what are the key drivers for
my property. PMS is the main source
for this ‘on the books’ data, as it’s where
every single reservation and group
booking is recorded, manually as well as
automatically. Here are some of the key
drivers I always record through PMS &
our RM Software LodgeIQ - > Market
segment, Rate code, Channel, Country,
Day of week stays, Length of stay (LOS),
Lead time, Company/Agency.