Knowing how to effectively manage your hotel’s revenue strategy and system is a much more complex business than simply keeping track of your average rate per room. Relying on an increasingly sophisticated range of metrics and processes, understanding the process is a step towards driving your hotel towards bigger and better success.
Use better targeting
Instead of simply flinging all your marketing spend at one method and hoping something sticks, opt for deliberate and targeted marketing strategies which will produce measurable results – and target these efforts at specific audiences. The same promotions which will appeal to business markets are perhaps not the same as you would offer to a weekend traveller – so carefully plot who you want to book a stay, and when – and decide how best to cater to them. Without careful planning, it’s hard to ascertain down the line whether spikes in revenue are the result of sheer fluke or your own considered and deliberate actions.
Regularly assess existing efforts
Assessing the outcomes of your current revenue management strategy is essential for maximising its continual effectiveness, allowing you to refine your existing methods or alter them entirely, dependent upon your findings. Try to balance profitability and overall growth, using trend reports and direct reporting for the intelligence required. Streamlining your processes as much as possible is also helpful, allowing you to assess the effectiveness of each of your revenue channels such as your website, OTAs and more. Different demographics are apt to respond differently to varying channels, and remaining agile enough to respond to their needs is key at every stage. Check not only overall responsiveness but try to identify booking patterns which evolve over time, as this will give you a much clearer picture of how successful your current methods truly are.
Use the latest tech solutions
For the best chance of succeeding with your revenue management strategy, be sure to adopt the latest technology. A proficient revenue management system (RMS) will combine the best of all possible worlds and give you up-to-the-moment data, as well as allowing you to monitor and automate some of the routine processes which could otherwise take up lots of your valuable time. Ensure key members of staff are educated in how to use your system, to help delegate some of the pressure.
Choose a dedicated hotel revenue manager
Assigning a single member of staff to take care of your hotel revenue management is a fantastic way to save you time and money, as well as benefitting from their significant expertise in this often-complicated area. At Magnuson Worldwide, all partner hotels are eligible for their own revenue manager, specialising in global distribution systems and online travel agency management. The revenue manager helps to boost overall revenue by expanding the reach of partner hotels existing efforts through manipulation of rates, pricing and promotions, as well as negotiating so all partners receive the highest listings possible for extra visibility on a global scale.
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