No matter the size of your hotel, forecasting is at the heart of your approach and the basis of any effective optimization revenue strategy. An effective strategy is based on the ability to accurately predict guest demand and, therefore, predict the optimal selling price of your rooms according to the level of market demand.Strategy should be built on a solid basis of revenue targets using RevPAR, the average price and other parameters relevant for targeted tracking of results. Finally do not forget to visualize your rates compared to your competitors
Revenue management also involves managing the various distribution channels, not to mention social media. It has to diversify and be visible on multiple supports.
Yield Management makes it possible to offer an optimal solution to the matching of supply with demand.
If the relationship between hoteliers, OTA, social media is one of the great challenges of tourism today, remember that the customer is at the center and that your sense of hospitality is the basis of all this process.
Yield management consists of understanding, anticipating, responding to demand in order to maximize revenues.
For this there are 3 levels:
– Price :
The price is a contract between buyer and seller; For all that, you never buy a prize and barely a performance, but a « solution » a place to spend the night. It is a category indicator.By the way, The price is an element of the image of the hotel. One can not explain the management of a hotel business to its customers (however, it is necessary to take into account its fixed and variable charges in the calculation of the price). Price is an element of demand marketing and not of supply.
– Yield :
Consists in maximizing the turnover generated by playing on the price variables by a differentiated and dynamic pricing policy.
In this context, the lowest prices are offered for bookings made very early or at the last minute. Due to the development of the Internet, Yield management has new applications that favor real-time pricing management procedures.
– Marketing :
Personalization, payment and mobile appear as the main marketing issues.
To manage these 3 levels one must be able to predict the future.
For that, the first step is to collect a database, analyze it, and then predict demand and performance. This involves identifying the trends in its activity:
• length of stay
• weekdays of booking
• week days of stay
• of the average booking basket
• the average price
• the reservation window
• the cancellation rate
• number of no-show
• Reason for the stay (personal or professional)
Based on sales history, using internal data, is the best way to establish your demand forecasting curve.
Main objective: help you determine what is the best time when you need to change the price level of your rooms according to demand.
Sell « the right product to the right customer at the right time at the right price on the right sales channel. » – Robert Cross
In conclusion,you have to know, make the right decisions and put them in place on the different distribution channels.
Understand, anticipate and respond to market demand to maximize revenues.
Travel distribution industry is entering a period of unprecedented change, with rapidly changing consumer expectations and advances in data analysis technology.
Price constitutes a decisive lever of action to establish the positioning of the company on the market. Its fixing must take into account jointly the margin desired by the company, the demand and the competitors. Demand evolves according to price: price constitutes a source of information for the consumer and it intervenes in its process of choice and evaluation of the product. Finally, price policies are not fixed in time; On the contrary, they evolve according to the returns, the movements of competition and the life cycle of the product.