In over ten years of helping hotels to open and remodel successfully, we have seen time and again at Xotels how indispensable a feasibility study is. We have also seen how many would-be hoteliers simply assume that their vision will succeed, without conducting any notable research on building a hotel business that will be consistently profitable and competitive. In this article we look at the steps involved in carrying out an effective hotel feasibility study.
Over the last year, we have expanded into a new and very exciting segment of the tourism industry. We have taken on the revenue management for a camping site and holiday park in the UK. We have adapted our methodology to the specific requirements of this lodging type, and the results are incredible. We would like to take you with us through our journey of the last few months implementing yield and dynamic pricing at Lady’s Mile in Devon, United Kingdom.
Reading an online hotel industry news publication this month, I came across a statement that kind of threw me off. An industry veteran I greatly admire was suggesting hotels should consult with OTA for revenue management advice. Of course I probed as to what he really meant by this, as it seemed to me a tip that may lead hoteliers down the wrong path.
Amsterdam, 2015-10-16: Busy Rooms and Xotels today announced a strategic partnership that has developed a state of the art revenue management dashboard for the hotel industry.
The solution will provide hoteliers with unique management information and serves as a revenue management tool to optimize hotel performance.
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.