Revenue & Yield Management Blog

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.

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.

After publishing many articles online, we have now also compiled all the information into a FREE Revenue Management PDF Handbook. The Xotels Revenue Management Manual is an introduction to revenue management in the hotel and hospitality industry, and is a reference for both starting and experienced revenue managers.

Before subscribing to a hotel revenue management course or online training program, I would recommend you to read the articles on our blog or download our free ebook. It will save you [...]

We have been faced with this challenge many times, and it seems it oftenboils down to the same. It might surprise you that generally the problem is due to a lack of insight in independent hotels on how the travel industry really works. There is also a shortage of understanding in the business in general. As a result hotel assets become distressed and are in dire need to be turned around.

Location is one of the top selection criteria for travelers when choosing a hotel. And yes, location has a big impact on the demand your hotel will generate, and therefore will influence the price you can ask in the market for your rooms. Hence when starting a new hotel, the site selection process is a key step that should not be taken too lightly.

In response to our blog articles on hotel revenue management, we get asked one question very often in particular. 'How do I start a career in revenue management?'. It is posed not only by students nearing the end of their educational program, but also by mid-level managers who have worked in the hospitality industry for a couple of years already. Becoming a hotel revenue manager is their dream job!

No plan is viable without some form of research. Especially if you require outside investment you will need to demonstrate you have done a hotel market study for your new hotel concept. It will also be helpful for you to put your ideas on paper and benchmark them against the market to determine the chance of success. Based on our hotel revenue management consulting and hotel management´s experience we have put some pointers on paper …

Investing in hotel real-estate requires a lot of funds. We are talking about tens or hundreds of millions of dollars/euros. You need to ensure a proper ROI is generated with such a strategic investment. Moreover hotels are a multi-million dollar operation. In any other industry we would be looking for a well experienced CEO to manage such a company. Who would you trust to manage your hotel investment?