USING REVENUE MANAGEMENT

OBJECTIVES OF SESSION INTRODUCTION REVENUE MEETING POTENTIAL HIGH DEMAND TACTICS POTENTIAL LOW DEMAND TACTICS IMPLEMENTING REVENUE STRATEGIES

INTRODUCTION REVENUE MANAGEMENT IS LONG TERM PROCESS OF MONTHS & YEARS & NOT ONLY OF FEW DAYS REGULAR REVENUE MEETINGS ARE TO BE CONDUCTED FOR A SUCCESSFUL R.M. MODEL REVENUE MEETINGS SHARE IMPORTANT BUSINESS INFORMATION LEADING TO R.M. DECISIONS

REVENUE MEETING REVIEWS THE THREE DAYS FORECAST MAKE SURE STRATEGIES ARE IN PLACE REVIEWS THE PREVIOUS DAY’S OCCUPANCY, ROOM REVENUE, ADR & YIELD STATISTIC REVIEWS THE BOOKING PACE FOR NEAR TERM BUSINESS REVIEWS OLD BUSINESS PRESENTS NEW BUSINESS

FORECASTS FOR DEPARTMENTS KNOWING HOW MANY GUESTS ARE IN HOUSE CAN HELP FOOD & BEVERAGE DEPARTMENT TO BE PREPARED RATE CHANGES & ADAPTATIONS IN SELLING STRATEGY AS PER THE SALES DEPARTMENT OCCUPANCY PERCENTAGE WILL AFFECT HOUSE KEEPING & BELL SERVICES

IDEAS FOR STAFF IN R.M. CREATE A SENSE OF COMPETITION POST MEASURABLE, SPECIFIC GOALS SUCH AS BUDGETS OR OCCUPANCY DATA SHOW STAFF MEMBERS HOW MUCH THEY MAY INFLUENCE THE TARGETS PROVIDE INCENTIVES OR RECOGNITION FOR GOAL ATTAINMENT TRAIN YOUR STAFF

POTENTIAL HIGH DEMAND TACTICS CLOSE OR RESTRICT DISCOUNTS APPLY MINIMUM LENGTH OF STAY RESTRICTIONS CAREFULLY REDUCE GROUP ROOM ALLOCATIONS TIGHTEN GUARANTEE & CANCELLATION POLICIES RAISE RATES TO BE CONSISTENT WITH COMPETITORS

POTENTIAL HIGH DEMAND TACTICS(CONT.) CONSIDER RATE RAISE FOR PACKAGES APPLY FULL PRICE TO SUITES & EXECUTIVE ROOMS SELECT DATES THAT ARE TO BE CLOSED TO ARRIVALS EVALUATE THE BENEFITS OF SELL THROUGHS APPLY DEPOSITS & GUARANTEES TO LAST NIGHT OF STAY

EXCESS DEMAND TACTICS (APPLY HIGH DEMAND TACTICS) UNDERSTAND THE CAUSES OF EXCESS DEMAND IS IT ONE DAY OR MULTI DAY EVENT WHAT TYPE OF EVENT IS IT? WHAT OTHER PROPERTIES ARE LIKELY TO SELL OUT DUE TO THE EVENT? IS THE DEMAND LOCAL OR FOR A LARGER AREA? ARE THE POTENTIAL GUESTS LIKELY TO ACCEPT THE MINIMUM LENGTH STAY RESTRICTIONS?

POTENTIAL LOW DEMAND TACTICS SELL VALUE & BENEFITS OFFER PACKAGES KEEP DISCOUNT CATEGORIES OPEN ENCOURAGE UPGRADES OFFER STAY SENSITIVE PRICE INCENTIVES REMOVE STAY RESTRICTIONS INVOLVE YOUR STAFF(INCENTIVES) ESTABLISH RELATIONSHIPS TO GET REFERRALS LOWER RATES

IMPLEMENTING REVENUE STRATEGIES HURDLE RATE MINIMUM LENGTH STAY CLOSE TO ARRIVAL SELL THROUGH

HURDLE RATE LOWEST RATE FOR A GIVEN DATE BASED UPON DEMAND IS HURDLE RATE HURDLE RATE FLUCTUATES ACCORDING TO HOTEL’S YIELD DESIRE & MARKET CONDITION INCENTIVES MAY BE PROVIDED FOR LONGER GUEST STAY OR SELLING ABOVE HURDLE RATE

MINIMUM LENGTH OF STAY RESERVATION ACCEPTANCE MUST BE FOR ATLEAST SPECIFIED NUMBER OF NIGHTS DEVELOPS A RELATIVELY EVEN OCCUPANCY PATTERN IT IS COMMON APPROACH FOR RESORTS & HOTELS ALSO USE IT DURING HIGH OCCUPANCY

CLOSE TO ARRIVAL WHEN FRONT OFFICE IS EXPECTING HEAVY CHECK INS ON A GIVEN DATE, THE ADDITIONAL ARRIVALS WILL NOT BE ACCEPTED THE FRONT OFFICE MANAGER DECIDES THE C.T.A THE RESERVATIONS OFFICE SHOULD TRACK THE NUMBER OF RESERVATION REQUESTS DENIED DUE TO THIS RESTRICTION

SELL THROUGH IT IS MINIMUM LENGTH OF STAY WITH SPECIFIED DAY/DAYS HOTELS USE SELL THROUGH STRATEGY TO OVERBOOK IN PEAK DAY & COVERS NO SHOW, EARLY CHECK OUT OR CANCELLATIONS THE PEAK PERIOD MAY BE EXTENDED OR ATLEAST MINIMISES THE EFFECT

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