For hotel owners looking to grow their business, a robust revenue management strategy is of the utmost importance, helping to optimise business results. However, under the broader revenue management umbrella, there are many smaller strategies that can help to facilitate growth. In this article, you find nine revenue management strategies that those in the hotel industry can employ to achieve this ultimate objective.
Segmentation and Price Optimisation
The concept of selling the right room to the right person at the right price requires you to appropriately segment your customer base. To do this, you need to identify different ‘types’ of the customer and then look at these different segments and evaluate when they book hotel rooms or hotel facilities, how they book them and other habits.
When this is carried out, it allows you to optimise prices for those different segments. One of the key advantages of this is that once prices are optimised for a particular segment, price changes can be minimised. This, in turn, can help to generate customer loyalty from those who appreciate the price consistency you offer.
One of the most important aspects of revenue management is forecasting, which allows you to anticipate future demand and revenue, enabling necessary adjustments to be made. Within the hospitality industry, high-quality forecasting relies on accurate records being kept, including occupancy, room rates and revenue.
Most forecasting strategies rely heavily on using historical data to spot trends. For example, if you notice an upturn in business in the past three Julys, it is sensible to assume the same may occur next time. However, forecasting also requires an awareness of current bookings, competitors’ performance, local events and wider industry trends.
Embrace Search Engine Optimisation (SEO)
Search engines offer one of the single biggest opportunities for those operating in the hotel industry to attract customers, which makes search engine optimization an important part of a robust revenue management strategy. Through SEO, hotel owners can improve the visibility of their website on search engine results pages.
As a consequence, you can improve the chances of attracting business from customers who are not specifically searching for your hotel, but who are searching for a hotel in your location. To achieve this, it is best to operate a solid content marketing strategy, and ensure your website’s design is optimised for SEO purposes.
For those in the hotel industry, mobile has become one of the single most important revenue streams. As a result, any hotel or resort that is operating without having prioritised mobile optimisation is already operating at a distinct disadvantage compared to its competitors.
Make sure your website is optimised for mobile viewing, meaning it loads quickly, the pages display properly on mobile devices and all buttons are fully functional. In addition, you need to ensure your booking process is also optimised, so that customers can book rooms from their mobile device, without needing to switch to desktop.