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!
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.
Again in 2014 we have published some articles very popular with our revenue management fans. What really struck a chord? Check out our most read hotel blog list and rankings for this year.
Over the past years we have writen many articles about pricing strategies and techniques. Just reading up on the topic myself, I thought it would be useful to compile all of them in 1 single page of reference.
I would like to share with you the hotel marketing success story of 3 of our hotels for which we have been working hard to push direct sales this year. The hotels are in completely different categories, demonstrating that if you work hard and have a focused strategy, you can generate a good level of direct sales, and divert business from OTA directly to your hotel website.