Hoteliers have been fine-tuning their efforts at setting rates for rooms and upgrades for decades. What used to be an entirely manual process requiring at least one full-time staff member is today made simpler with an automated approach to setting prices for maximum profit. Unlike their enterprise brothers, independent locations generally have little staff and far less time to make on-the-spot revenue management decisions. They can, however, create dynamically adjusted rates based on anticipated demand and occupancy, without underselling the property’s value.
That’s not to say a revenue management strategy is unessential. It is arguably one of the most important aspects of successfully operating your hotel. A property’s trends, including historical occupancy rates, RevPAR and ADR; as well as competitive rates and upcoming events at the hotel and in the vicinity are all predictors for demand. Each is crucially important for setting prices that prompt guests to make a booking.
How do you make it work for your independent, boutique, or small chain? Find the right solutions, and with a little setup, most of the work can happen automatically. Whether you offer specialty packages, amenities, upgrades, dining, or other services, no property should be without the ever-important rate yield management logic found in specific property management systems.
How Rate Yielding Works:
- Offer pre-defined rates based on weekend stays, upcoming events or holidays
- Set controls to increase or decrease prices base on occupancy at the time of booking
- Offer discounts when a guest books multiple nights
- Configure rates for advance bookings using your own rules
Hospitality technology, booking trends, guest expectations – nothing stays the same for too long. While revenue management depends on data from the past, your strategies for the future are bound to be affected by the demand for last-minute deals that influence the way people book rooms. Respond quickly to meet this demand and your property will stand apart.