What is revenue management?
Yes we all know the definition right rate right price right customer etc etc
Here is a simple one: you manage the revenue that comes into the property… sure but how?
Well is a simple combination of :
- a room rate
- with or without a meal plan and sundry/ancillary (where applicable)
- with certain restrictions (cancellation, payment policy, deposit policy, length of stay etc)
that’s it… the management is a deciding which combo of the above is available and for sale
oh and then the part that will take most of your time:
- does the channel sell the combo you decided?
- Or are they ‘doing their own thing’ – example Bcom deducting a further %age but calling it ‘paid by Bcom’ – nice?
- NO – they take a cut of their comm and reduce your rate even more.. and then they have a rate advantage – over your own website and everyone else you have an agreement with – and this causes big disruptions in the supply line – more damage than good
free tip: giving an OTA a promo of any kind is like selling your soul to the devil (and you give it for free…)
OTA’s have 1 goal in mind: having a rate advantage in the market, and they literally do not care who is affected – other channels, your own website and and..
Need help or advice – get in touch 😊
Tel: 074 490 7711 / 021 551 7440 – jaco@hotel-revenue-manager.com
