Revenue Management is fundamental in hotel management to optimise the revenue and inventory of your accommodation. A correct implementation of the strategy can lead to higher profits regardless of the context and the situation that an accommodation may be going through. Therefore, we understand that the correct choice and execution of this strategy is the basis for success, however, these actions are still the pending subject of many accommodations or managers. In this post we give you 6 basic tips to optimise the Revenue Management strategy and boost direct sales.
1) Analysing the market is fundamental
From the most basic to the most complex data. It is necessary to know the context in which we move. Public transport, connections and nearby alternatives or inconveniences that may affect us. With this information it is possible to extract demand patterns, appropriate segmentation and be prepared for possible unforeseen events in the market.
2) Identify the competition
Pricing strategy can be based on a comparison with our closest competitors. Hence the importance of knowing them in depth and analysing them thoroughly. Knowing the strategy of our competitors and obtaining as much data as possible on all possible variables and in an updated way is fundamental to make better decisions.
3) Defining and selecting the most appropriate channels
It is necessary to know our product as much as possible and identify if it corresponds to the needs of our guests or target audience. If not, we need to rethink this and reposition it. This is essential for a correct selection of channels and an adequate marketing of our products.
4) Establish a strategy
Once the context has been analysed and the previous bases have been established, it is time to move on to execution and put into practice those actions that we consider appropriate to achieve the objectives that we have previously set.
5) Having the right technology
The use of technology can make the difference in Revenue Management. Through them, time can be optimised to the maximum and you will have access to a complete amount of variables that will allow the possibility of offering the right product, at the most competitive price, through the right channel and at the right time.
6) Outsource the service
If you can’t have your own staff for this management, outsourcing the service may be the best option and bring benefits more quickly. If there is permanent communication between the agency and the establishment, the feeling of control and the execution of the strategy will run smoothly. Therefore, having the right professionals with an expert eye will be noticed in the day to day and in the achievement of the objectives set.
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