๐ Increase Revenue at Your Hotel: A hospitality consultant shares strategies to boost hotel revenue.
๐ง Contact Information: Reach out at chris@hotelrevenueman.com for coaching sessions.
๐จ Example Property: The fictitious Wagon Wheel Inn has 100 rooms, with an annual occupancy of 55% and an average daily rate (ADR) of $60.
๐ Revenue Management Strategy: - Lower rates during low demand to increase occupancy. - Raise rates during high demand (weekends and holidays) to maximize revenue.
๐ Current Scenario: - Flat rate of $60 leads to 55% occupancy on weekdays and sold out on weekends. - Revenue increases by selling more rooms, but costs also rise.
๐ฐ Profit Analysis: - Weekday profit drops from $1,650 to $1,400 due to increased costs. - Weekend revenue can increase from $6,000 to $10,000 with proper rate adjustments.
๐ Overall Impact: - Average ADR increases from $60 to $64. - Total profit can rise from $14,000 to $21,000, a 50% increase.
๐งน Occupancy Management: - Aim for 70% occupancy due to staffing limitations. - Adjust rates higher to manage fewer rooms sold.
๐ก Final Thoughts: - Proper revenue management can significantly impact profits. - Engage with guests to build relationships and encourage direct bookings.
๐ Feedback: Comments and questions are welcome for further discussion.