Best practices for a effective revenue management

Revenue management is a practice that has to be done holistically, and casually doing revenue management is not the right way to go about it. To receive the maximum output from revenue management, it should be carefully structured, and Metahotels helps in understanding just that.

Revenue management is inextricably linked to pricing, and it includes several other factors such as the brand’s or hotel’s online reputation and visibility.

Common revenue management mistakes you must avoid

Let us now look into the common errors in the pricing structures that affect the revenue management capability of the hotel business:

Excessive restrictions practiced in terms of the minimum number of days for stay, cancellation policies, and non-refundable amount rates can deliberately affect the perception of the guests.
The inability to collect precise statistical data leads to a lack of precision.
Listing in different online channels is good for business, but not having an idea of how much commission each of them gives will have a drastic effect on revenue management.
The lack of flexibility in room management like upselling or upgrading the guest from the existing room choice, no potential move bookings, etc. can affect the revenue maximization of the hotel.
Giving due consideration to online reviews. It can have dire and impactful consequences on the income of the hotel as people give preferences to positive reviews as the basis of their choice of selection.

How to get your revenue management on track?

The best way to move out of this wrong structure in business is to start being more proactive and appoint professional revenue managers for this cause. MetalHotels can also provide valuable assistance to get a hotel performance review and analysis of where you are lacking.

Revenue management is not a trial-and-error method, and it should not be a single-faced analysis. It is multi-faceted, and only when the hotel management starts seeing the other clearly defined areas will they be able to make more income or revenue from the same. Professional revenue managers help businesses do the same.

Past data is key to deriving analysis, and the revenue managers also look into some equations that will help with maximum revenue management. Revenue per available room is computed to maximise occupancy and determine how to make a bigger turnover when the hotel is at its maximum occupancy.

The revenue manager also starts categorising the revenue obtained from different channels and helps maximise the returns from each booking through different means. Different revenue models are created for different kinds of bookings.

Online reviews will be strictly managed and will focus on bringing in more positive reviews. Positive reviews are known to have a direct impact on revenue. Improving reputation can guarantee a good impact and better returns.

Revenue managers use sophisticated software to analyse and interpret occupancy trends, weather, area offer and competition, the source channel, lead time, brand reputation, and a variety of other variables.

Enjoy the fruits of a successful revenue management with expert guidance from MetaHotels!

MetaHotels strives to be a part of every hotel’s business by offering assistance and support. We have created an interactive platform that will help in achieving the dream of every hotelier: getting the maximum turnover. Success is direct when you choose Meta Hotels, as we believe in giving our clients the maximum earning potential. Choose us to ensure the success of your hotelier journey.