So, what are the key morning to-dos for all Revenue Managers?
1. Pick Up
Time to check your overnight pickup on bookings. Was there a key booking period that may identify a trend? Perhaps an event has been announced, or maybe a wedding at a local hotel. If so it could be worthwhile (dependent on your availability) to put a minimum stay policy in place and increase your base right slightly. Also review what packages you have in place. In the case of large city events like concerts it may be a good idea to introduce an exclusive prepayment package for the key dates.
2. Check On the Day Rates and Availability
Have you rooms available to sell tonight? Do you need to review your rates to pick up the rooms required? And if you do still have rooms to sell is this because of last minute cancellations? Perhaps your cancellation policy needs to be reviewed. For more details on reducing cancellations see here.
3. Forecasting
Is your forecast realistic? Have external influences changed from when you did your initial forecast? We would advise all Revenue Managers to look a minimum of 12 weeks ahead every day. Are there any groups holding significant room stock but have yet to confirm? Is there a potential that these groups may cancel or wash down? Always ensure you have a plan B to Z to cover all eventualities.
4. Upselling
How can you upsell for over the phone bookings? Can your team sell dinner or spa packages instead of Bed & Breakfast to potential guests? Can you enhance your guests to stay 2 or 3 nights instead of 1 or 2 nights? These are small gains but add up very quickly. Here are more tips on cross-selling and upselling.
5. Competitors
Are you reviewing your competitors rates? Can you gauge from their rate how many rooms they have left to sell over any given night? If you increase or decrease your rate by €10 will they action the same? Choose a random date 60 days ahead and monitor your competitor rate on that date for the next 30 days – how many times do they adjust or even if they adjust it at all? The right pricing strategy is crucial to a hotel’s success, so it is imperative to have knowledge of competitor’s pricing to come up with a winning strategy that yields results.
Conclusion
An effective revenue management strategy constantly re-evaluates the variables involved in order to move dynamically with the market. As the market evolves, the strategies and tactics of revenue management must be adjusted accordingly. Use these 5 to-dos every day and make sure you and your hotel stay ahead of the curve.
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Niall is a graduate of the Shannon College of Hotel Management, and for his final year completed a Bachelor of Commerce degree in Marketing in the National University of Ireland Galway. Previously to his work at Net Affinity, Niall worked and lived in London for 5 years working in hotels specialising in Revenue Management and Business Development for the Doyle Collection , The Dorchester Collection and finally the InterContinental Hotel Park Lane. He returned to Ireland in 2014 and worked as a National Account Manager for Orbitz Worldwide and Availpro. Niall’s hobbies are golf, rugby and travelling – his favourite city is New York.