In this video, Scott Dahl from the Les Roches Hospitality Management School in Crans-Montana will be telling us how smaller hotels can keep a tight grip on their revenue management while ensuring they stay profitable and healthy.
The difference between a hotel making a loss and turning a profit can often come down to the last 10% of its revenue. This means that seizing every opportunity to optimize your pricing strategy is highly important – and is more crucial still for smaller hotels, as the upside is potentially larger (even if such hotels may often also be hampered by limited resources and other challenges that bigger establishments are spared).
In this video, Scott Dahl from the Les Roches Hospitality Management School in Crans-Montana will be telling us how smaller hotels can keep a tight grip on their revenue management and ensure they stay profitable and healthy.
We shall be addressing how smaller hotels can manage their prices and maximize profits – through effective forecasting, for example. Hotels of all sizes have a range of different tools available to them for managing their revenue, and we discuss how applying length-of-stay restrictions can help you prioritize longer stays over shorter stays when demand is high; we also examine options for offering different products and combining multiple hotel services in packaged offers.
A crucial part of managing revenue is having a channel-specific distribution strategy – not least as limiting distribution costs can sometimes increase profitability more effectively than raising prices. Sure, it’s great when a third party can sell rooms that you otherwise might not have sold, but is it always worth the fee? It’s important to have a considered distribution strategy so you have a proper overview of your own bookings.
Scott also reviews some of the software small hotels can use to access valuable market information and better understand their own booking curve, and discusses when it’s best to use a dedicated revenue management system. This is a no-brainer for the big hotels that can easily afford it, but smaller hotels can also often benefit from upgrading their basic systems and using technology in ways that won’t create extra work.