Revenue management is an extremely important and as crucial for small accommodation businesses as it is for large hotels. It allows hotel owners to anticipate demand and optimise availability and pricing, in order to achieve the best possible financial results. Successful revenue management strategies hinge on the ability to forecast demand and to control room availability and length of stay.
Even if you can’t afford a fully fledged revenue management system or full-time revenue manager, it’s not something you can afford to ignore. The good news is that there are easy ways to manage it successfully yourself, and affordable hotel management software solutions that can help you make it effortless.
At a basic level there’s plenty you can do that will naturally improve the amount of revenue you drive, and give you more flexibility around strategic decision-making.
Boost your revenue stream by:
Being bookable online – It really is crucial to connect to at least five OTAs and also ensure you have an online booking engine integrated with your website.
Segmentation – Identifying different guest segments that stay at your hotel will let you see which segments are more profitable for you.
Room pricing and rate strategy – Obviously you need to figure out how you’re going to price the rooms at your bed and breakfast or hotel.
Offer guests extras – This not only increases your revenue but also enhances the experience for your guests.
Personalize upsell offers – Your upselling will be much more effective if you can match your offers with your guest’s preferences and profile.
Enforce policies – Policies such as a minimum and maximum stay length or cancellation fees can ensure you are maximizing profit at all times.
Ancillary revenue – Selling products that you use at your hotels such as soap or candles, or letting guests purchase breakfast or a massage will pile revenue on top of what you’re already earning from your rooms.
Account for the seasonality of your property – Your pricing must be fluid, not static. When there is high demand, you have the freedom to increase your rates to earn more revenue. In low season, you could try using packages and bundles to entice guests with convenience.
Measuring performance – Tracking and analyzing your performance regularly is the only way to improve over time. There are a number of common metrics you should use to identify how well your revenue management strategy is working. These include your occupancy rate, your average daily rate (ADR), Revenue per available room (RevPAR), Total revenue per available room (TrevPAR), Gross operating profit per available room (GOPPAR), and Revenue per occupied room (RevPOR). Tracking metrics allows you to have an analytical understanding of the success of your B&B.
Most importantly, always seek help in the right places. There are many expert consultants in the industry that know exactly how a small or large property should optimize their revenue.
There are also technology providers, such as MMR Hotels, that are specifically designed for small or large accommodation providers – giving you an all-in-one revenue management solution. You can visit www.mmrhotels.com or Call +91 80353 38816, +91 82519 39667 to Book a personalized Demo.
We hope this blog has helped you understand revenue management at your property!