Before talking about the strategies to be applied, it is important to understand what Revenue Management is.
Revenue Management, in a simple way, is a set of practices in which the main objective is to maximize revenue with the balance between the occupancy rate and profits.
Naturally, we are here to bring a simplistic explanation of a set of actions that aim to promote the best possible results to the hotel, obviously not wanting to question the unquestionable: Revenue Management (RM) today has a very important weight in the results and success of a hotel.
And so, nonetheless the customization of your business strategy that each one of you has, today we bring 3 consensual revenue management strategies to be taken into account:
Upselling is a technique that aims to boost sales and bring value to the customer's reserve. Remember that when a customer makes a reservation, this is not the final step, but the principle to maximize sales with that customer.
The buying paradigm has changed: the customer no longer seeks the room, he seeks the experience! So the perception of value gains another dimension and enhances the set of services that the hotel can offer!
• Dynamic Rates
Dynamic tariffs are one of the pillars of Revenue Management. Supply and demand have to adapt to meet!
Don't settle on annual tariffs, with changes for seasons. With simplified access, active search, and online competition, it is necessary to be proactive and act at the right time.
Work the prices according to your supply vs. demand, if you have to change prices in the middle of the day because the demand is not meeting expectations, do it! Keeping an eye on the market and working with dynamic tariffs will provide new opportunities to maximize revenue and stand out from the competition.
• Online reputation
To have a digital marketing strategy implemented and successful, it is necessary to work on reputation, both online and offline.
Think about the value that your venture brings to customers and the region where you are? How does your hotel stand out from the competition?
Start by understanding how your business is different and implement a strategy to get new customers from the experiences of other customers.
Online reputation is not about saying that your hotel is the best, but letting your guests say it for you: share good feedback, comment, and recommend. Did you know that over 90% of people make travel and accommodation decisions based on the opinions of others? How many times have you been influenced by the opinion of a friend or a comment you read on some platform?
Having social proof of your value will not only facilitate the increase in reservations but also allow the maximization of prices through the products or services that you can offer your guest making the experience more profitable for both!