What is the purpose of revenue management?
The idea behind revenue management is to have your supply perfectly match the demand at all times in order to achieve an optimal balance between your room prices and occupancy rate. Concretely, this means that you sell each room at the maximum price, while leaving as few rooms empty as possible. The ultimate goal? To maximise your returns!
What does it mean to appoint a revenue manager?
A revenue manager focuses on everything related to prices and availability. It is his or her job to monitor and respond immediately to every minor change in the market. Lots of data needs to be collected and interpreted.
Reading this, you can probably understand why this is such a time-consuming task. And let time be exactly the thing that hotel staff do not have in abundance. Consequently, revenue management is often pushed back on the priority list.
Is revenue management only relevant for big hotels?
The bigger the hotel, the more complex its needs. Larger hotels often reach a more varied audience and offer a greater variety of room types, which corresponds with a greater need for dynamic pricing. For a larger hotel, it is therefore opportune to hire an in-house revenue manager.
In a smaller hotel, the revenue management strategy revolves around returning customers, competitors’ prices and events in the area. These factors can easily be monitored with a Revenue Management System (RMS) that performs automatic analyses and proposes optimal prices.
Why is a Channel Manager a must for good revenue management?
If you use two or more channels to distribute your rooms, it’s advisable to use a Channel Manager. This way, you can show the same prices across all channels (rate parity). The availability of your rooms is also synchronised, which prevents double bookings.
Our hotel software Cubilis allows you to implement rate management without spending hours of time on updating prices manually. It also gives you access to reliable RMS partners that analyse market tendencies for you. In other words, the most efficient solution to offer the right price at the right time!
“We highly recommend anyone who works with two or more channels to use Cubilis."
Angelina Motzo, XO Hotels
Ready to start maximising your returns?
Visit our marketplace to see which Revenue Management Systems you can connect with. If you’re not a user of our Cubilis Channel Manager yet, don’t hesitate to ask your free trial through the form below!