Revenue Management Basics for Small accommodation providers
The basic steps small accommodation providers need to take if they want to manage their revenue successfully.
All small accommodation owners want to book their property to capacity.
Why? If a room is sitting empty for the night, you quickly lose revenue and you miss an opportunity to continue to grow your business.
The good news is, there are ways to avoid that by putting proper revenue management strategies in place.
These are the basics that you need to know in order to manage the revenue effectively.
Develop a rate strategy
Decide how you’re going to price the rooms at your bed and breakfast or small hotel.
You can do this based on its features. For example, a room with a premier view, such as an oceanfront room, will likely cost more than one with a view of the garden. A room with additional amenities, like a fireplace or a jet tub, will be priced higher than one without those same features.
Develop a seasonal pricing strategy
You should also have different prices in place during the peak season and the low season.
Demand is high during the peak season, so you can increase the prices of your rooms in order to generate more income that will help you supplement your business when the travel season slows down for the year.
During the low season, create discounts and packages that might convince guests to book a room when they wouldn’t have considered it otherwise.
Create innovative up-selling opportunities
Create packages that offer extras, such as champagne and strawberries or wine and cheese plates. Offer rental equipment at your location, such as DSLR cameras or bicycles.
…But can you measure your success?
Having the right kinds of metrics at your fingertips is absolutely essential if you want to track and measure your return on investment.
Small hotel owners are busy enough without having to work with Excel spreadsheets just to generate a report. Do you have the data you need to make those tough decisions?