Many of us have heard
of Revenue Management but less of us understand the truly essence of Revenue
Management.
Before we go further
on Revenue Management strategy, we need to understand what Revenue Management
really is in Hotel Industry. (We need to limit our discussion in hotel industry
since this RM is actually can be implemented in any sectors)
Definition
The Simple definition
of Revenue Management is selling the right type of room to the right customer
at the right price in the right time using the right distribution channels.
Revenue management is
use to maximize the potential revenue by analyze and predict the customer behavior
and market trend, easy example: is selling the room at lower price if you are
predicting low in room demand and sell it at higher price if you are expecting higher demand in your
competitor set area.
Good practice of Revenue
management will help sales people to maximize hotel revenue in peak period and stimulate
demand in low period.
In practicing Revenue
Management, sales people need to take many factors before making decision,
sufficient knowledge about typical clients, pricing positioning, competitor
pricing, what going on in your surrounding which may impact to city or area
occupancy, understanding of past statistic, what is your competitors doing,
what right channels to be use and many more..
Some group of International hotels has taken seriously into Revenue Management, they even provide Revenue Room where all scratches and ideas to be kept and discuss by management and revenue team.
HOW TO START?
- Make sure all your team familiar with terminology such as ARR, REVPAR,MPI, RGI, ARI
- Prepare 30-60 minute session in Sales & Marketing Meeting to discuss specifically about Revenue, in most leading hotel they have their own revenue meeting lead by revenue manager
- Consistently train your team member about Revenue management really is, it need everyone effort, not just sales person.
- Study the statistic? Trend pick up, trend cancellation, peak and low period, city occupancy trend etc
Or the easy way, CALL
ME to train your teamJ
