Hotel Revenue Management Services For Independent Hotels
The cost of customer acquisition through intermediaries and now metamediaries and other portals is increasing exponentially, sometimes as high as 40% commissions being paid to portals. With the changing landscape, revenue management becomes even more crucial for independent hotels.
A strategic revenue management plan should include knowing when and how to apply various strategies to maximize revenues over high and low demand periods and managing revenue from other revenue generating centres of the hotel.
A lot, really a lot has changed in hotel revenue management over the last decade. The market has changed: The growth of internet distribution, price transparency, emergence of social media, mobile technologies has had the deepest impact on our rate strategies. With rates being distributed widely on such a large scale has altered the purchase behaviour. Even corporate and consortia contracts are being pushed to become more dynamic and competitive. At the same time, unstable economies and disruptive climatic events have fundamentally changed the demand patterns.
Our Hotel Revenue Management Services
Divine Hospitality’s Hotel Revenue Management and Enhancement solutions focus on the hotel’s Direct Distribution Channel and the Total Guest value of every guest segment, not just guest room revenues.
Our Hotel Revenue Management and Profit Optimization Plan for Independent Hotels:
1. As a part of our strategic hotel revenue management and enhancement plan for your hotel, We analyse the following components:
- Information Systems
- Historical Demand and Booking Patterns
- Market Segmentation
- Pricing and Inventory Management
- Distribution Benchmarking
- Demand Forecast and Displacement Analysis
- Costs associated with customer acquisition and retention
2. We analyse the strengths of your hotel and your pricing and make recommendations for the products and price points that will yield higher net profit.
3. We then devise a holistic and integrated revenue strategy which encompasses sales, marketing, revenue management, maximizes inventory management and capitalizes on the best distribution channels with lower cost of acquiring customers, thereby generating direct revenue for your hotel.
4. We work as part of your hotels team, providing strategic guidance to implement revenue enhancement and distribution strategies intertwined with seasonality, occupancy rates, distribution channels, for each account, market segment, and business source.
Divine Hospitality’s Hotel Revenue Management services will help independent hotels to:
- Unlock behavioral insights through new data sources, predict consumer demand and optimize price and inventory availability in order to match that demand and maximize revenue growth.
- Other major benefits of our revenue enhancement plan include improving marketing and sales efficiency and effectiveness.
- It will tell the marketing team, how aggressive to be with offers and promotions and when they’ll need them.
- It will help the filling the rooms when demand is low and not they flooding the market with deals when it’s not necessary.
- Total Revenue Management for significantly boosting top-line revenue growth. Along with room revenue, Our Revenue Enhancement plan also takes into account the ancillary revenue that is generated in other various other revenue streams of the hotel, including restaurants, bars, conference centers, banquet rooms, and spas.
Indeed, demand for guest rooms can fluctuate wildly. So, too, then, should the price. The simple truth is that consumers are at times willing to pay more than at other times for the exact same accommodation. Divine Hospitality helps independent hotel to Manage pricing in a way that dynamically responds to these changes in demand and optimizes profitability.
Divine Hospitality’s hotel revenue management strategy is a blueprint for improving financial performance of your over a given period of time. The strategy incorporates all of the revenue streams from across the hotel as well as all from the sales department to the online distribution channels.
Our Hotel revenue management strategies are built upon a solid foundation of revenue goals, targeted RevPAR and include a timeline with key milestones and also spell out the tactics for achieving success.
Contact us today to discuss how we could create a hotel revenue management and enhancement roadmap for your hotel.