It is a real art to sell the right room to the right customer at the right price at the right time. Revenue Managers in hotels are the ones who specialise themselves in this area. However, very often small mistakes prevent the optimal success. Christine Sauer from the company revway explains how to recognise these mistakes and how they can be avoided.
Wrong rate strategies: To achieve the optimum price at the end, one should always start with favourable prices and increase them according to allocation and inquiry. However, very often exactly the opposite happens. The price is too high and later must be lowered. Unfortunately this makes a bad impression on the guests. Result: The customer cancels the reservation and makes a new one at a more favourable price or changes his reservation and books when the more favourable prices are offered.
Revenue Managers are wrongly used: Revenue Managers lose a lot of time because they are often used as reservation leaders and for data entry. But in fact they should coordinate, control, standardise and discuss the work of the reservation department. This effects the working hours which the Revenue Manager should be using to fulfil their real tasks, which are to make strategic decisions for the hotel and analysis of data material.
Expensive systems and tools: It is nice when a hotel uses the latest Revenue Management System. But one must also be able to use it effectively. In order to do so, it is absolutely necessary to know your business and what could impact it. In addition, it should always be taken into consideration that the hotel market constantly changes. Revenue Management Systems must be regularly updated. Unfortunately, this doesn’t happen often enough.
Inability to interpret data: With many reservation channels and company segments with different needs, it is sometimes difficult to keep an overview and to find the right balance between occupancy and price. To be able to consider every aspect possible, many Revenue Managers provide huge, long lists. Then, all you see are a lot of figures and the really important things are missed. My tip: It is better to provide several clear lists and analyze them separately.
Missing Networking: It is extremely important for a Revenue Manager to look around. Speaking to colleagues as well as to the competitors is of great importance. Revway offers a great possibility to build up useful contacts. On the homepage www.revway.com there is a Blog about Revenue Management and Electronic Distribution. Everyone, who is interested, can exchange their experiences here with other colleagues and get suggestions /advise.
About the Author Hans Jürgen Rüffert looks back over almost 18 years of his successful career within the hotel industry. His experience has been obtained in Revenue Management and Electronic Distribution in named hotels and groups within Europe. His ability lies as well within the leisure and business travel segment. For more information write to firstname.lastname@example.org or vistit www.revway.com