TROMPAR Offers Insights on Revenue Management Strategies for Hotels
Selling the right room, to the right client, at the right moment, for the right price, through the right distribution channel, with the best cost-efficiency
Revenue management is an extremely important concept within the hospitality industry because it allows hotel owners to anticipate demand and optimize availability and pricing, in order to achieve the best possible financial results.
In order to start implementing a dynamic pricing strategy, it is critical to gather all relevant information needed to set up the hotel for success.
Customer Segment Behavior gives insights into buying patterns of segments i.e., Corporate, FIT/Leisure, and Groups.
Demand Forecast is of critical importance when optimizing hotel revenue, as it anticipates future business performance. It does this by identifying outliers in the form of data points that deviate from average performance to maximize results.
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Displacement Cost refers to the revenue potential lost or displaced, to the enterprise incurred by accepting one piece of business over a competing opportunity.
Bid Price the minimum acceptable revenue for a unit of capacity
Discounting/Markdown Management allows rewarding customers based on length of stay, advance purchase, mode of booking (mobile vs browser vs phone) & last minute.
Always remember that you cannot measure it you won’t be able to manage it.
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