As in an economic cycle, hotels have business peaks and troughs and your pricing strategy must make provision for this. You can often predict these cycles, but what is more challenging to predict is how severe the troughs and peaks will be. Outside influence like natural disasters and protests, etc are impossible to predict, but […]
During times of low demand, it is only natural to offer discounted rates to stimulate interest and incentivise customers to book your hotel – but what happens in distressed demand time when everyone is fighting for the same customer? When business becomes so cut throat that we undercut our competitors at all cost, we set […]
Struggling with a drop in bookings at your hotel, guesthouse or bed and breakfast? In this 20 min video, we discuss Revenue Strategies to Combat Low Demand Periods. You can access the FREE Revenue Management E-Bundle here: https://lowdemandstrategies.gr8.com […]
Having attended a number of hospitality stakeholder meetings last week, it appears that most hoteliers in Cape Town are not planning to charge cancellation fees for reservations that are cancelled due to the drought in the Mother City. Is this really the right decision? Many a decision is made based on emotion and the drought […]
Revenue Management is crucial for hotels, yet in South Africa, amongst some of the smaller independent properties, it is still a hugely misunderstood concept. The most common beliefs are that the Hotel Revenue Manager is responsible for pulling the reports, or more recently, their job is setting Best Available Rates. Revenue Management is so much more […]
Do you question whether your Property Management System is correct and if it serves the delivery of your long-term strategies? One of the top long-term strategies, of course, would be to be successful, sustainable and profitable. Your top 3 investments in your establishment, therefore, are your staff, guests and the data which ‘lives’ in your […]
Be honest, how accurate was your Income Budget this year? A 5-7% variable on your budget is a good outcome. Have you analysed the results? Even the most accurate results must be analysed and studied. As the saying goes, ‘The Devil is in the Details’. We tend to only do an analysis when we missed […]
There are so many influencing factors to consider when setting a budget. It is a lengthy, but worthwhile exercise. The aim is always to: grow the business, set a realistic budget and get it as accurate as possible. Apart from outside influences like the economy, consumer price index, foreign exchange, politics and natural disasters, we […]
Revenue Management, although a well-established discipline in the industry for more than a decade now, is a misunderstood, if not entirely absent, concept in many hotels. Decision-makers know that they need a revenue management strategy, but they are either: 1) confused as to exactly why and what revenue management can do for the business; or […]
