When discussing Flash Sales there appears to be a lot of dislike in the hotel industry. The consensus could be summarized as that commissions of such email subscription promotional websites are way too high and discounts required are way too steep. Moreover you will be undercutting your own direct price positioning.
If your hotel runs at 95%+ occupancy each year, I of course might have to agree with you. However if your hotel is distressed or under-performing, you should look for opportunities to generate growth. From a revenue management perspective that is. Because in the end the cost of extra revenue is not extra cost!
At Xotels we are very fortunate to have been working with various exceptional and innovative hotel concepts over the years. The key to success, as we see it, is breaking paradigms and challenging the status quo. And so does our latest partner, Zoku. They have just launched their brand, announcing The End of the Hotel Room ...
Recenctly we asked some of the longtime clients of Xotels this question, the answer was simple, 25% or even more ...
Meaning that by implementing best practices in revenue management and proven techniques we are delivering at least 25% incremental revenue to hotels.
I was recently asked by a revenue management coach & consultant, whom I regularly do business with, for an interview.
She presented me with three questions about the current state and the future of hotel revenue management. What follows are her questions and my thoughts on the subject.
We have written a lot about hotel revenue management over the last few years. It seems a good time to make a short list with the components that are crucial to your revenue management strategies.