Youtube Video

Summary published at 10/19/2024

๐Ÿ‘‹ Increase Revenue at Your Hotel: A hospitality consultant shares strategies to boost hotel revenue.

๐Ÿ“ง Contact Information: Reach out at chris@hotelrevenueman.com for coaching sessions.

๐Ÿจ Example Property: The fictitious Wagon Wheel Inn has 100 rooms, with an annual occupancy of 55% and an average daily rate (ADR) of $60.

๐Ÿ“‰ Revenue Management Strategy: - Lower rates during low demand to increase occupancy. - Raise rates during high demand (weekends and holidays) to maximize revenue.

๐Ÿ“Š 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.

๐Ÿ’ฐ 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.

๐Ÿ“ˆ Overall Impact: - Average ADR increases from $60 to $64. - Total profit can rise from $14,000 to $21,000, a 50% increase.

๐Ÿงน Occupancy Management: - Aim for 70% occupancy due to staffing limitations. - Adjust rates higher to manage fewer rooms sold.

๐Ÿ’ก Final Thoughts: - Proper revenue management can significantly impact profits. - Engage with guests to build relationships and encourage direct bookings.

๐Ÿ™ Feedback: Comments and questions are welcome for further discussion.

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