Revenue Management During Low Demand Conditions

The global economic slowdown is impacting hotel demand. Revenue Managers have to implement different strategies in order to generate optimum growth and revenue. Here are some of the tips by the Revnomix team to ensure our hotel partners succeed during the low-demand period.

Push value and advantage

Quoting rates is the easiest thing, however, demonstrating the right product for guests and the best value can be tricky. Demonstrate the various values and benefits of staying at your property versus others the guest may be considering.

Float packages

One way to increase the volume is the bundled pricing with a combination of Room with a number of desirable products and services into a single package at one price. Non-room revenue also includes, for example, free movies, discounted attraction tickets, and shopping coupons.

Open up the discounts

Discounts are typically direct towards particular markets/Customer types/Age groups that push during a particular time or season. During low-demand times, it is important to accept discounts to encourage room nights. Remember, Discounts are fine till we have fences. Avoid naked discounts.

Stimulate Upsell & Upgrades

Encourage the guest to get better accommodation or class of service to enhance their experience and hopefully bring them back to the property again and again. Upselling can add to cash flow and a good customer experience will create future potential and value

Push higher LOS

A stay-sensitive price incentive provides a discount for guests who stay longer. For instance, a guest staying three nights might get an additional 10% per night discount, while a guest staying one night might not.

Release restrictions

Eliminate any stay restrictions so guests don’t limit themselves to when they arrive or depart. Customers who can only stay one night will wish to stay as well as the guest who is staying for a week. This will help to maximize occupancy.

Establish relationships with competitors

Having a cordial relationship with competitors can help with referrals and can help to carry out cross-marketing efforts.

Lower rates far out

Creating a base well in advance is the best strategy to avoid a last-minute rush and rate dilution. This will lead to systematic occupancy flow and a distinct benefit to customers booking far out. Avoid last-minute rate dilution as a thumb rule.

Feel free to reach out to us at www.revnomix.com if you need consultation on revenue management and data analytics for your hotel.

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