Depending on the level of demand expected, you would leave money on the table if you weren’t implementing some degree of room revenue management. RevPAR or revenue per available room is applicable to all kind of hotels, as long as every single day a hotel needs to get the most of its fixed capacity. Top hotel management companies have been applying RevPAR for ages.
In our daily environment we face lots of service companies that are applying their own revenue management. For example a bowling center. As there is more demand on Friday night, Saturday and Sunday we need to put some restrictions on the number of players to increase the turnover. A bowling center has also its low demand period, and the issue is to displace the demand to Monday or Tuesday night with some bowling classes or bowling competitions.
So if other types of service companies can successfully apply a sort of RevPAR, hotels should be able to do the same. First analyze your market and identify what’s going on. Identify for the next twelve months, periods or days with strong and weak demand. As soon as you know what will be the level of demand you can expect, build your rate strategy.
[Revenue Management] will help hotels increase tourism revenue on the long run; it is where the money is. Working twelve months ahead will make you more competitive with regards to your competitors and will get you clients who are booking in advance for your hotel. Hoteliers that still think revenue management can’t be applied to their own business really need to take consideration on how much they can increase their results by.
Would you like to know more about revenue management or hotel management? Visit Xotels.com for more information.
