Revenue
Management is an efficient way to maximize profits from limited resources. Not
all businesses, especially hotels, can afford to increase their range of
services in a short period of time.
Hotels have a limited number of rooms
available at any given point of time. It is only through the proper
implementation of good revenue management practices that they can increase profits
with their limited resources. There are a number of ways that hotels can make
their revenue management procedures more efficient and profitable.
Systemization
Increasing
the profit and revenue is not a one-time trick. Revenue managers can only do so
much. The systems implemented by the managers need to be improved upon on a
consistent basis.
In today’s technologically oriented world, the trends can
change quickly and thus, the revenue systems need to be continuously appraised.
There are various technologies available today which make it easier to keep
track of the trends of the market.
A successful hotel needs the latest
information on the hotel market and regional economical conditions. The
performance of the hotel since its inception also needs to be looked into
whilst devising an efficient revenue management system.
Google Hotel
Finder
As mentioned
before, technology is a major part of our lives in the 21st century.
Google, the leader in Internet based services, has added a hotel finder
function to their repertoire.
A hotel’s exposure in the global market can be
significantly improved if its name is added to the list of hotels in Google
Hotel Finder. Becoming a part of the Google Hotel Finder can help attract
revenue which can only be a good thing.
Projection
A hotel
needs to maintain a long term plan. The prices of rooms are bound to vary from
season to season and it is very important to have a clear idea about the
potential income of the coming year and after that.
Revenue management dictates
that proper strategies be formulated in order to get a clear cut idea of future
pricing policies. Arbitrarily selecting prices and approximating cash flow can
have a negative effect on revenue. Proper plans need to be drawn up so that the
prices of future reservations do not turn out to be unsatisfactory.
Competition
Any
successful business requires a careful analysis of the competition. To get the
maximum benefit out of revenue management systems, data must be acquired on the
competing hotels. Ideas about their prices and attractions can help in creating
better strategies for improving the hotel and thereby, revenue.
Last Words
Managing
revenue is a long term job. Newer practices are developed everyday and hotels
must ensure that their data and management systems are up-to-date. Improving
the systems are a must if the hotel wants to keep leading the pack.
