Amidst constant demand fluctuation, we offer you a way to rest assured you are offering the right price to the right customer at the right time, at all times.
Pricing Strategy Management
Pricing: among the most powerful tools you can use to increase revenue. Our focus is to set the right prices, develop rate fences and use multiple distribution channels to manage your prices more effectively.
Our “weapons” are variable and open pricing in the context of price elasticity, optimal price mix, perceived fairness, and compatibility with positioning and sales tactics.
- What do my guests want?
- What strategy best complements my business mix?
- How does this affect my connected channels and distribution systems?
- Which pricing approaches are accepted by my integrated channels?
- Research & Development
- Review of Reservations
- Pick Up
- Pace Analysis
- Day Rates and Availability check
Daily Revenue and Performance Management
As your remote Revenue Manager we focus on multiple tasks during the week but some of these items have to be done on a daily basis and sometimes multiple times within the day.
The outcome of making these actions have a very far reaching influence on revenue generation and grow.
Availability Strategy & Inventory Controls
Sometimes, lower than anticipated occupancy occurs at high-demand times. Figuring out why this might be the case we should consider length-of-stay controls.
These controls can be used to help raise occupancy during high-demand times
- Minimum length of stay
- Maximum length of stay (ex. Block your cheapest rate code to a max LOS)
- Closed on arrival (use this method only when occ.% is very high)
- Determine the fraction of your business that should be allocated to group business
- Determine the break-even point for group requests of multiple-night stays with and without ancillary costs
- Determine the implications of multiple rate classes and multiple lengths of stay on group break-even prices
Knowing the occupancy rates for your facility, including the number of guests you turn away because no rooms are available, helps you determine what mix of negotiated and transient rooms will maximize revenue for your hotel.
We are here to help you
Using overbooking strategy, we proactively take into account group block and individual rooms that won’t be booked, working to reduce the number of empty rooms that would result.
By creating forecasts, we use booking data to estimate how many group block and individual rooms will be booked, and when.
Both of these are necessary for effective revenue management.
- Evaluate arrival uncertainty through forecasting
- Create an effective overbooking strategy to protect revenue
- All fundamental statistical units reflecting your hotel’s performance
- OTB, Occupancy, ADR, RevPAr, TrevPar, F&B Revenue, O.O.D. Revenue
- Pick up rates
- Reference to the budget
- Best performing weekdays, both in history and to the present and future
And many more
KPI Performance Reports and Tracking
Hotels, as Business organizations need to understand how they are performing by continuously assessing and reporting their set target, goals and objectives and making adjustments where necessary.
Expect from us regular reporting covering all valuable KPIs, providing performance information as well as additional data (ad-hoc reports).
Some reports will be sent to you on daily and others on weekly and monthly basis.
A demand forecast is the primal step to optimum pricing and more significant profitability. As hotel rooms are perishable commodity with a “shelf life” of just a day, it’s meaningful to aim the maximization of their value.
Having forecasted the upcoming demand gives us the ability to spot requirements and build a strategy based on projected occupancy.
In simple words, a forecast is a basic tool used to run a hotel more effectively and profitably.
- Booking date
- Rate code
- Arrival date
- Departure date
- Revenue by day
For us at Reveffect, the idea of forecasting, is not about forecasting an outcome. Is about accurately forecasting. In our holistic approach of forecasting we take into consideration various parameters of the market such us the uncertainty of demand and the risk in relation to it, to make the most accurate forecast possible.
- Negotiated Rates
- Miscellaneous/ Rest
Segmentation: “The practice of dividing the marketplace into parts, or segments, which are definable, accessible, actionable and profitable and have a growth potential.” By the Economic Times.
We can’t forecast or yield without first breaking down the business.
Having segmented your business, you may recognize its major trends, such as cancellation ratio, LOS, stays by day of the week, room revenue, guest Revenue, booking window etc.
Market Demand Analysis
When we think of Revenue Strategy, we view all travelers around the world, as a hotel’s potential guests. It doesn’t matter how many rooms a hotel has.
We do not estimate demand or forecast, limited to the capacity of the hotel.
The demand becomes constrained only after we start counting and make judgments depending on the hotel’s capacity.
We acknowledge that rates influence and restrict/ constrain demand and guide us to forecasting.
So, why not we orientate our strategy to work on finding the right price, at the right time by monitoring our demand signals and experiment with testing our rates?
Here is a plain example for you to understand.
When you hold a high rate for a period of time or a specific day and this rate is bringing you reservations, doesn’t this mean that the demand is high?
- Events in the area
- Days of the week (Midweek or Weekend)
- Corporate business (ups and downs)
- Group business