
Hotel revenue managers have started to understand that consumers are now more informed than ever. Right now, most travelers know about hotel rate parity, rate of day fluctuation, and the availability of rate types. As a result, they achieve more buying power. Property owners are left in the position of increasing their competitiveness using new technologies in order to boost hotel sales. It is important to find out what the real cost of using hotel distributions are including the returns each channel provides to profit optimization.
Given the importance of minimizing costs and the need to improve the yield of each channel, hotel revenue managers should encourage consumers to book using the most affordable and profitable channel possible. But there is a danger to this in rate parity. Remember that the hotel rate parity must not be overlooked so various levels of value in booking is a good option.
Many hoteliers have a lot of things to consider. Revenue management also involves analyzing the consumer’s acceptance of price strategy modifications. Some markets are more sensitive than others. In addition, the overall economic condition also contributes to price sensitivity. Hotel revenue management consultants also say that knowing about the current political and competitive environment is crucial because different consumer segments will react differently. Historical data, primary research, and the existing level of hotel sales all point to the price sensitivity of the consumer.
Price Integrity – Increasing Hotel Sales
No one in the hospitality industry can deny that price is a critical weapon. Outside the hotel industry, the same concept holds true. Price can make or break you. The consumers will only pay premium rates for something they perceive as having premium value. To encourage these types of sales, it is important to create confidence in the brand, hotel services, and overall impression.
In many instances, adaptive pricing strategies need to be implemented. When hotels want to increase occupancy, aggressive pricing can be used. Discount pricing is particularly notable during off-peak periods to boost profitability. There should also be packages that will appeal to various segments of the market. Certain segments need specific services while some need only basic accommodation.
All these factors need to be considered in hotel revenue management. But it is always important to keep in mind that offering the same packages at different rate is never a good idea. It will confuse the consumers and will make them feel cheated if they paid more.

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