Integrating Revenue Drivers to Optimize Hotel Sales

Summer is usually the peak season for most hotels. But due to the economic climate today, hotel revenue managers are definitely expecting that hotel sales will not be as great as before. However, the fact remains that this is the most important time to maximize hotel profits. If this isn’t achieved during this season, hotels will have a difficult time meeting their sales target for the year. To achieve this, it is important to implement good revenue management.

Currently, customers are wiser than they used to be. They know how to look at the elements of their accommodation including location, hotel choice, facilities, and brand. It is important to get into the customer’s mind in order to provide the best service to them. Take note that revenue management can mean different things to different managers.

Basically though, the main aim of hotel revenue management is to increase RevPAR. Most have a pretty clear idea of how an increase in RevPAR can be achieved. However, based on data and consultations, many hotel revenue managers seem to lack coordination with their revenue drivers. These drivers include central reservation, hotel electronic distribution channels, sales department, and online sales. Overall, it provides the revenue for the entire organization.

One of the main concerns that a lot of hotel revenue managers expressed in many consultations is that they are unaware of the rate changes in their own hotels, specifically those that are posted in electronic distribution channels. Sometimes, it becomes too high that attendees from certain meetings have to book elsewhere instead of going for the group block. At other times, the rate posted is lower compared to what the hotels negotiated with third parties.

To avoid these problems, it is important to collaborate within all levels of the distribution channels and at all levels of the organization. This process will ensure continuity. Below are some tips that will help you do just that:

Product Positioning – it mainly involves the rate that will be charged for group bookings, competitive set, and reservations among others. It will need to be adjusted so monitoring the franchise yield management software is critical.

Look over Contracts – all existing and forecasted contracts should be analyzed. Everything from volume contracts with wholesalers, group contracts, and other obligations should be based on the rate structure. This should be determined by both the sales and revenue management department.

Online Presence – right now, many are finding their hotels through the search engines and hotel electronic sales channels. For a hotel property to increase hotel sales, they should look into these channels seriously.