Revenue Management for Youth Hostels
Looking to give your Youth Hostel that competitive edge, and outperform your local competitors? Xotels is an innovative revenue management consulting company, and specialized in youth hostels. With our business development DNA and strong drive for results, we aim to challenge the status quo and established order.
For our client portfolio of youth hostels and modern design hostel concepts, we have developed a methodology and best practices in yield management. With these proven revenue management techniques, taking into consideration the unique aspects of their lodging accommodation, we increase their financial performance.
We can help you implement revenue management in your property, and uncover its hidden revenue potential. Our hostel experts are specialist in driving both top line revenue and bottom line profit, focussing on KPI like ABR, occupancy and REVPAB. They are assisted by our inhouse developed revenue management system, to help you outperform your competition and become a leader in your local market.
Below an overview of what our revenue manager consultants would be working on for you:
Our Revenue Management Mission
- Adopt a healthy market segmentation
- Assist with budgeting and develop a forecasting model adapted to the market segments
- Increase revenue by stimulating demand and use existing demand for the destination
- Push forward the business on potential distribution channels to enlarge the demand
- Optimize direct sales and distribution via website and phone
- Structure the pricing management
- Set strategic pricing in terms of public and negotiated rates
- Handle all Revenue management tasks on a daily, weekly and monthly basis
Xotels will study the main competitors of the property to assess their price positioning in relation to their products offering. Xotels will build a report comparing the strengths and weaknesses of the main competitors and the business. The report will aim at building the Price – Value relationship that the property can provide in front of its main competitors.
Xotels will benchmark and compare the pricing strategies of the main competitors and the property. The study will look at the public prices but will also try to pinpoint negotiated rates such as FIT and corporate rates. The study will look at a year period: day by day pricing by length of stay. The benchmarking will show how the busineess is priced competitively and create or revise the pricing grid.
Xotels will evaluate the distribution of the main competitors: GDS, IDSs and off line through mystery calls. The study will look at promotion management, length of stay pricing per channels. The study will also look at the distribution management of the lodging bussiness, inventory availability management, rates availability management in periods of low to high demand. The benchmark study will look at the competitive strengths and weaknesses of the property and present an action plan, with a primary focus to contract the right new distribution channels.
Upon the benchmarking studies, Xotels will review the existing pricing grid or build a new one and recommend pricing strategies to stimulate the demand. Both public prices and negotiated rates with multiple length of stay will be assessed and recommended. Pricing will be recommended per period of demand: low to high periods. Negotiated corporate rates will be reviewed in relation to the production and distributor partners. The sales team input will be needed.
Xotels will review the demand calendar, or create one, and analyze strength of demand day by day per period (with or without events), in view of day by day rate strategies.
Xotels will build market segmentation for the business and create a forecasting model to ensure that existing demand for each individual segment will be targeted most effectively in terms of marketing, sales and pricing strategies.
Rate Strategy Sheet
Xotels will develop monthly rate strategy sheets with the following objectives:
- Day by day pricing strategy for one year will be shown (price value per length of stays day by day will be recommended)
- Pricing strategy per channels of distribution
- Yield strategies with L.O.S. restrictions on peak periods
Xotels will also review or build the rate loading and the rate management through all electronic distribution channels to ensure that all prices including corporate and travel buyer rates are correctly shown and bookable. Two meetings are planned before the start of implementation:
- Meeting at the start of the project with first phase of assessment and meeting with the team
- Final presentation meeting with the pricing strategies and tools
Online Distribution Strategy
Xotels will develop the implementation of the suggested action plan. As the main challenges based on current occupancies seem distribution and pricing oriented Xotels will focus on getting the required results. This includes contracting online and offline distribution channels.
And don’t think this does not apply for your youth hostel. Dynamic pricing is fully accepted by travelers nowadays. Not implementing revenue management, simply means you are leaving money on the table, that your competition happily picks up.
We work with a wide range of hostels varying from classical dormitory style youth hostels to design poshtels, boutique hostels, trendy pod-hotel concepts, luxury bed & breakfasts and small budget hotels in cities like Amsterdam - the Netherlands, London - UK, Paris - France, Barcelona + Madrid - Spain, Brussels - Belgium.
Xotels is a driving force of change in revenue management.
Want to increase the financial performance of your hostel?
Bring in the experts!