Revenue Management Made Easy
How do you decide the price of your rooms? How do you increase your average price over time? How do you improve you occupancy rate in your free time? What's an occupancy rate? What's free time?
All these answers and more are one sweet scroll away...
But hold your horses a sec, and let me introduce myself and give you the brief in this handy little video to your right.
Get to it - revenue is a-wastin'!
Chapter 1
In this first chapter, we will lay the foundations for your revenue management strategy. We're going to take some steps to help you get to know your establishment a little better so that you can build an appropriate, viable and profitable revenue management policy for your establishment.
Just one more quick introduction to let you know a little of what's in store for you in chapter 1...
Module 1 - Identifying Target Customers
In Module 1 you will learn how to segment your customers into groups and identify helpful characteristics to know specific to each segment. You're going to consider the needs, expectations and concerns of your different customer segments in order to to build a suitable and attractive offer.
Module 2 - Which room and to whom ?
In Module 2 we will show you how to categorise your rooms according to their particularities and to choose which customer segments to push them with.
Module 3 - Which price for which room ?
In Module 3 you'll set you room prices according to your segments with a view to boosting your sales, you'll get comfortable with the BAR (steady!) or Best Available Rate and we'll do our best to boost your direct booking rates.
Module 4 - Choosing Distribution Channels
In Module 4 we'll learn how to pick the best channels in order to get your rooms and their optimised rates in the eye-line of your target customers. We'll also see how we can make OTAs work for us...
Chapter 2
The second chapter drops you smack-bang in the middle of the cruel world of competition and offers you a few simple methods to use and make your competitors' weaknesses your strengths. You'll identify your position in the market, your own strengths and weaknesses, and some opportunities to take advantage of in order to optimise your sales.
Just one more quick introduction to let you know a little of what's in store for you in chapter 2 ...
Module 1 - Who are my competitors ?
In the first module of Chapter 2 we're going to learn about benchmarking which is a buzzword for the comparative analysis of your competition. It will help you get to know the marketplace better. You'll learn the different aspects you need to study, such as the price, the product or the “value proposition”.
Module 2 - Is my offer adapted?
Here's where you're going to put in some work to figure out how your potential clients might see you. We're going to see how to adjust your image and prices to suit your home team and ultimately this will help us put together a coherent revenue management strategy.
Module 3 - How can I gain advantage over my competitors ?
Now you've identified your competitors I'm going to show you a method to keep tabs on them involving regular research sessions. Spoiler warning: you might end up overtaking and crushing them and direly in need of new competitors.
Chapter 3
In this chapter you will come to understand the importance of data in Revenue Management. Together we're going to collect, analyse and use past, present and future data to maximise your income. All going well you're going to see how easy it is to make the right choices when you've got the right kinds analyses to lean on.
Just one more quick introduction to let you know a little of what's in store for you in chapter 3 ...
Module 1 - Use the past to predict the future
In this module you're going to dig into the past so you can more readily meet tomorrow's demand. We'll have a look at some demand trends and adjust your offer to optimise your income over a selected period.
Module 2 - How to anticipate future risks and opportunities?
We're going to look at future events and how they might affect your future bookings positively or negatively. From there we'll use that data-driven crystal ball to make sure you don't miss out on what should be coming to. Hint: It begins with M and rhymes with honey.
Module 3 - Anticipate Demand Variation
Great news - we're going to put together a demand calendar to help us anticipate fluctuations in that tricky bedfellow of supply. We're going to put it together then follow up on it by adjusting prices to maximise occupancy rates. And they say hoteliers don't know hoe to have fun...
Chapter 4
To finish off, we're going to dig into what we learnt in the last chapter and set up a pricing strategy or maybe just review whatever you've already got in place. This is an opportunity to set up a pricing strategy but also to see how to increase the value of your offer without incurring large expenses. We're going to learn to work against the age-old reflex to decrease prices in order to attract customers. There are other, better ways and we're going to learn them too.
Just one more quick introduction to let you know a little of what's in store for you in chapter 4 ...
Module 1 - The price or the value - that is the question
This module will show you how to set your prices from a revenue management perspective. We’ll also cover value pricing - a method designed around maximising revenue.
Module 2 - What's the right pricing strategy for you ?
In this module we’re going to swot up on the different pricing strategies out there and choose the best one for your business. I’m going to show you that the most important numbers aren’t what you earn but what you get to keep after the dust settles.
Module 3 - The promotion has two faces
Here we’re going to first break down demand conceptually and see how to anticipate and act on it. We’re going see when to promote value and when to adapt your offer to the demand that’s out there. We’ll look at the different types of promotion and see when and how to put each in practice.
Module 4 - The seven deadly errors (of pricing)
All’s well that ends well. We have arrived. For this last one we’re going to flip it a little. I’m tired of telling you all what to do - let’s talk a little about what not to do. Here are seven examples of common mistakes you’ll have no excuse to make after watching this final video.