πΌ Robert Russell discusses revenue management and yield management strategies for boutique hotels.
π¨ If you work for a hotel with 20 to 200 rooms or are responsible for driving revenue, this information is for you.
π Common goals include:
πΊοΈ Establish a process or framework to implement revenue strategies. This may involve:
π Revenue Management: Selling the right room to the right client at the right time for the right price.
π Yield Management: Pricing each room type by date based on supply, demand, and perishability.
π It is a critical tool for maximizing revenue and profitability in the hotel industry.
β οΈ Smaller hotels face challenges such as:
π The three critical steps are:
π° Small changes can lead to significant impacts on profit. For example, a 14% increase in volume can result in a 140% increase in profit.
π Different hotels have varying elasticities. For instance, a $50 rate drop may yield different additional room nights across hotels.
π To implement changes efficiently:
π¨ Maintain a consistent rate structure with base rates and derived rates for promotions and packages.
π΅ Consider the costs of software, training, and salaries when implementing revenue management strategies.
π Embrace revenue management to enhance profitability and adapt to market changes. For more information, consider scheduling a consultation.