What elements and influences should you consider when making your hotel forecast? What could affect the pick-up and booking trends of your hotel? An important question to be answered in order to have a solid revenue management strategy.
Influence of the Competition
It is important revenue management practice to keep the history of your competitors’ availability and prices. That piece of information is an important part of the understanding of the demand to come to your hotel.
Does your main competitor sell more or less expensive on the forecasted period versus the same period the previous year? How will that impact the demand to come to your hotel? Does your pick up curve reflect your competitors’ strategies?
Other elements to your revenue management approach to consider include:
- Fully booked dates
- Changes in their selling strategies
- Low or High rates periods
- Opening and closing of Hotels (buildings)
- New management – Refurbishments
Rate Code, Channel and Origin Statistics
Can you develop pick up tools to analyze pick up on channels, nationalities? Which rates and/or channels your clients are booking in the future? What are the on the books (OTB) nationalities of your clients and the trends? Is it what you expected?
Top Accounts Expectations
As a revenue manager, anticipate your top accounts production: Internet, Corporate, Consortia, Whole Sale – Tour Operators, Meetings/Conventions (i.e. does the on the books of one IDS reflect the general trends of your total on the books?).
Speaking of one main corporate account clients, will they book as much as in the past? Will they book on the same days of the weeks? Will they keep spending as much as they did? Will their length of stay remain the same? Gather information when meeting your clients, asking questions on projects, expectations…
Know your sales strategies by account and analyze how it affects your global strategy. Forecasting must be as much quantitative as qualitative! Forecasting must be participative: the front-office, the sales team receives information from clients you may need. For this reason, communication is highly important in hotel revenue management.