Common Errors Made in Hotel Revenue Management
Smart use of the available tools makes hotel revenue management easier to carry out than ever before. Yet, there are still far too many hotels making the same mistakes in this respect.
What can you earn from the errors that are commonly made by other hotels? There are a few areas where you will want to learn from the experience of others who have done things in the wrong way.
Giving Up on Their Own Site
This is perhaps the most common error in hotel revenue management these days. Many revenue managers think that there is no reason to carry on with their own site.
There are just so many aggregator sites around that it is easy to think that it is impossible to drive traffic to a hotel’s own site. However, running a site for your hotel is still very much worthwhile. If you choose the right site-building service then it isn’t even hard work to do.
Despite the online competition, it is still possible to make your own site the main and most effective way you have of selling rooms. Don’t think that you need to just give up on this idea. You can easily get a site that ranks well and attracts a large number of visitors every month by using good SEO techniques to build a buzz.
Sticking to Just One Strategy
What is the best strategy that you should use in your hotel revenue management? The truth is that there are a number of interesting, productive approaches that you could try.
Maybe you will have a strong focus on social media. Perhaps you will use mobile marketing techniques to attract new guests. Another option is to focus on different geographic regions where you might be able to get visitors from.
You can use all of these strategies and more. Indeed, the more ways you have of bringing in paying guests the more profitable the business will be. The key is in choosing the right strategy at the right time and doing it well.
Getting the Pricing Wrong
Getting the pricing right is one of the trickiest areas of hotel revenue management. If your rooms are too expensive then you won’t get many bookings. If they are too cheap then you won’t make enough money from them.
Clearly, this is a subject that needs a lot of ongoing analysis to get right. What is the perfect rate that gets you plenty of guests and a healthy profit as well? It may take you some time it but it will be well worth the effort.
If you avoid all of these common errors then you will have a far greater chance of creating a strong online hotel brand that consistently brings in good profits. Don’t make the same mistakes that other hotel revenue management teams have made in the past and keep on making.