How hotels can simplify today’s complex hotel revenue management strategies

TLearn WebinarOctober 4, 2016

At the core of revenue management, hoteliers must...

#1

Monitor your competitor set and local market demand - ensure you

build an accurate picture

#2

Use your competitor set analysis to identify your

best available rate -ensure you remain

competitive at all times

#3

Continually adjust and price your rooms

dynamically - ensure you maintain a balance and don’t under or overprice

The glossary...

BAR: basic available rateADR: average daily rateRevenue: assessing last day, week, or monthOccupancy: % of rooms occupiedRevPAR: revenue per available room

Don’t forget these key revenue management terms...

The model…

Occupied Rooms: 100BAR: $79ADR: $64REV: $6,400OCC: 100%REVPAR: $64

Knowing your compset gives you the edge...

noun. CompSetA competitive set of hotels that most are geographically close, but more importantly resemble your BAR, market segments, and business mix.

Do you need to simplify your revenue management strategy?

So, how do you know if your approach to pricing and revenue management is too manual and too complex?

If any of these 5 statements ring true with you, then it’s time to simplify...

Do you need to simplify your revenue management strategy?

Occupied rooms: 100 vs.Occupied rooms: 88

BAR: $79BAR: $125ADR: $64ADR: $112.50REV: $6,400REV: $9,900OCC: 100%OCC: 88%

REVPAR: $64REVPAR: $99

By applying simple dynamic pricing and raising your BAR rate, an extra $3,500 in revenue was generated - and in just one day!

Industry reporting - what to look for?

Market Penetration Index = Your occupancy / compset occupancyOver 1.0 - You are getting your fair share

Average Rate Index = Your ADR / compset ADR

Revenue Gen Index = Your RevPAR / compset ADR

Top tip!Compare year-on-year &

set BAR strategically

What was happening a year ago?

Think positive: Local event, corporate group, wedding

Think negative: Air Lift Trends, bad weather, new property

Poll no. 1Which of these 5 statements about revenue

management rings true with you?

Poll no. 2Do you use tech to automate your hotel’s revenue

management strategy?

Q & A

Thank you!

Send your questions and comments to gene@tnooz.com

Replay and presentation will be available on www.tnooz.com