Surely the drop in travel will linger on in 2021 and beyond, and it might be difficult to believe that we will ever return to pre-Corona levels, let alone exceed them. But let’s take a short look at history.
For hoteliers, who are committed to take up this challenge and turn the downside into a long-term opportunity, berner+becker revenue management has written a whitepaper that aims to inform hotels about currently available business, provides insight into the topic of planning and forecasting from a revenue management perspective, guides hotels along the cornerstones of distribution and pricing and provides guidance on key issues hotels should consider when analysing their business.
Noone is familiar with any MICE related index numbers. ThatÕs because there are none. Until now.
Simply put, a hotel that does’t apply overbooking is losing a big chunk of profitable revenue, as normally the high BAR rates are sold last. On days when there is incremental demand, the opportunity to sell 100 per cent of the rooms is there. In a market with lot of incremental demand, hotels need to pay extra attention in order not to lose out on revenues.
I know it is lame, but the standard definition simply has to be mentioned: Revenue management is selling Òthe right product to the right customer at the right time to the right priceÓ. Furthermore I would like to add through the right channel.
To maximise the revenue performance during a fair or high impact event might be easier said than done. Many rely on returning business to bring in a safe level of base occupancy to a slightly higher rate and surely their ADR and RevPAR will increase accordingly a couple of euro. But is that enough?
Just as for corporate contracting, you only have one chance per year to get your prices and allotment allocations right for your wholesalers and tour operators. As this means quoting prices for business in the far future, usually now for Q2 2018 to and including Q1 in 2019, it makes the decision even harder and more important.
The RFP process is an important process that hotels must take seriously since it is the one and only chance per year that they have to optimise the prices and inventory sold in the corporate segment. So, think it through carefully and analyse your corporate accounts. What do they bring you?
Work flow, communication, staff happiness, and your bottom line results, will all be positively impacted by a well-aligned and understood revenue management culture.