3 Proven Strategies for Effective Revenue Management in Hotels

 An effective revenue management strategy for hotels is the main agenda behind any successful operations. Particularly in the hospitality sector, hotels can manage their room availability and pricing by anticipating the demand beforehand. But to do so, hotel owners need to understand the preferences and demands of consumers to sell a room at the best market price at any given point in time using the appropriate distribution channel.


Let’s take a look at the top three proven revenue management strategies that will boost up the hotel’s business.


1. Track the competition-  To be successful in your business, you need to keep an eye on your competitor to anticipate customer demands and lay out strategic room prices. In case, if you know that your competitor is offering deals on their hotel rooms, it could be an indicator that will show that the demand is low and you can adjust the price accordingly. 


2. Forecasting is key-  Now anticipating the demand can only be achieved through accurate forecasting. You need to keep previous records such as occupancy rates, customer preference, and upcoming events, so you can better prepare beforehand. Forecasting needs to be done by closer monitoring of market trends, market dynamics, and competitor performance. Analyzing these data carefully will do wonders to boost your business.


3. Pricing strategy- This is one of the most important methods to increase hotel revenue. This includes a dynamic pricing strategy to lower or increase the pricing rate depending on the demand. You can change the rates as per the length of the stay or include other services with the packages. This way diversifying the pricing tactics will help you to optimize hotel revenue and enables you to adjust the pricing according to the current market trends.


How PricePoint can help you gain an advantage?


PricePoint offers an automated revenue management system for hotels and large airlines in order to address the price issues faced by various hoteliers. This AI-based revenue management software can optimize the price in real-time and can be automatically updated to OTAs like Airbnb and hotel booking websites. With the use of this RMS software, hotel owners can easily increase their occupancy rates and boost their business.


Want to know how PricePoint works? Then start your free trial today!

Comments

Post a Comment

Popular posts from this blog

Hotel Revenue Management Software

Image
In order to understand and analyze guest behavior and booking patterns  you need to understand the strategy and implementation with a goal of increasing bookings at the right price at the right time. Hotel revenue management is a process to optimize how your hotel appears on OTAs, opening new booking streams for the property. Follow this dynamic pricing strategy for ideal yield.  Benefits of hotel revenue management: Easy forecast on booking trends Implementation of proactive pricing strategies More visibility across distribution channels Get new revenue opportunities Develop and compare forecasts vs revenue reports There's no need to hire an in-house revenue manager Liberty to be attentive on the guest experience This helps you analyze the historical data of revenue managers to book patterns during the day of week, events, festivals and guest behavior. Thus you can easily forecast booking trends of the next one year for your property. This way, you can prepare for the seas...
Read more

Know More About Hotel Rate Management

Image
If you are using a hotel rate management software you will have a lot of benefits. This article shows you the most amazing benefits of using a hotel rate management software. The price is determined by the tool being used for hotel management software . The tools depend on market intelligence and rate shopping and keep a very reasonable price. Make sure you are researching well so that you get a flexible price  model. Most of the time you are charged each month and the fees depend on the size of the property. You will be charged higher fees if you have more rooms.  As you choose a tool make sure you are considering these features: Seasonal pricing Time-of-day pricing Day-of-week pricing Daily override functionality Discount and premium rates etc Though users can always control the modern RMS, it mainly focuses on monitoring, detecting and optimizing these features. The process is automatic. Why should you invest in such tools? Here's how you get benefited by using a hotel rate...
Read more

Hotel Rate Management Software

Image
  If you’ve planned to purchase hotel revenue management software, you’ve just only started your journey. Now there is a lot to do in regards to making a final purchase decision. Hotel revenue management tools: What do they cost? Price will obviously change based on the type of tool you’re looking at for hotel rate management. In the case of tools dependent on market intelligence and rate shopping, price will be very reasonable. Research for providers who offer you a flexible pricing model. You can always move to a contract later if you get a discounted price and are content with the service. Commonly the charge you pay each month depends on the size of your property. The more rooms you possess, the higher your fee will be. Before investing, ensure your tool has these features: All-day visibility of local supply and demand Real-time alerts Compare room rates with competitors in one view Know local market pricing up to one year in advance U...
Read more