Below are 3 tips to increase your revenue right away!
Tip #1: Rate integrity – public versus direct rates
An important first step in taking control of your revenue management, is taking control of your room rates. Have you ever followed the distribution path a room rate follows? From PMS > Channel Manager > Online Travel Agency? Is the rate on the designated OTA platform the desired rate you entered in your PMS? Or did it change along the way?
Is the rate you offer on your website the most favourable one to potential guests or are there more interesting rates on other distribution channels? If so, why would a guest book directly on your website? Go through your distribution landscape, map out the channels you work with, review the discount/promotion strategies and be aware of the payment options offered per OTA. This way, you can understand why a room rate is bookable for a specific value on an OTA platform.
Tip #2: Take control of your distribution landscape
Take the review of your distribution landscape to the next phase. Are the distribution channels you work with connected to a Channel Manager? In other words: can your distribution channels receive room type availability and room rates automatically? Secondly, are you aware of the costs involved per channel? What is the fee or commission % per reservation on each distribution channel?
Thanks to the Rate Buckets feature in RevControl’s Revenue Management System, you can take control of your distribution costs and focus on your most profitable channels. RevControl lets you create different Rate Buckets, which allows you to automatically open and close certain rate plans based on your hotel's Business on the Books or Forecasted Occupancy.
The Rate Buckets calendar shows you the status of your distribution channels. Here you can open or close the Rate Buckets with one simple click. This way, you have full control over your room type availability throughout your entire distribution landscape.
Tip #3: How to position your accommodation in the market
Before you can roll out a strategy based on the market you are operating in, you first need to analyse the market. Which hotels are in your area, which products do they offer, what is their review score, what is their location and what is their target market? By reviewing these factors, you start to map out the competitors and you can position your accommodation within the market.
Nowadays, many hotels are working with rate shoppers. A rate shopper provides them with market data, such as rates and rate restrictions of competitors and events happening in the area. A next step would be to use this market data in an analysis and rank your property amongst the competitors to receive a ‘Competitor-based Rate Recommendation’. Because data is there to be used! Use this information and receive updated Competitor-based Rate Recommendations every day, to set out the ideal selling rate to the market.
By understanding your own rate structure, taking control of your price integrity and subsequently understanding the market you are active in, you can really make your revenue management easy!
Interested in building an effective rate management strategy?
Don’t hesitate to contact us through the form below if you’d like to know more about the integration between Cubilis and RevControl. We’re happy to help you increase your revenue!