Revenue Management: How to maximize your RevPAR in 15 minutes
As the name says - Revenue Management is a core function to ensure your asset achieves the highest possible revenue. Dedicating 15 minutes every morning to adopt the below 3 activities in your day to day duties can help set up your asset to achieve the best in class RevPAR (Revenue Per Available Room).
First 5 minutes - What does my historical information tell me?
Finding your first 5 minutes to understand the historical information is essential to satisfactory managing your revenue. Ask yourself, what is my average lead time for my business overall? Do I know this by segment by month? Having this information at your finger tips will allow you to make an effective decision if we need to adjust a strategy or a tactic in our business.
Next 5 minutes - What was my pickup yesterday?
The next 5 minutes is to look at or monitor the room night pickup from yesterday. The question you should ask yourself is “what was my room night pick up yesterday for yesterday, next week, the month, the next 2 months?” Are you able to note any pickup trends for a specific day or period from the last few days of pickup that warrant a change in tactic or pricing strategy.
Last 5 minutes - What rate am I charging and am I priced correctly?
The final 5 minutes relates back to historical information; for example, if you know your lead time is 14 days and your pickup is showing minimal pickup for that period today, maybe an adjustment in tactic or pricing strategy is required.
Who is in your competitor watch list that you are comparing your daily rates to? How did you come to this conclusion to include them but more importantly do your customers consider these as your competitors as well? If we can include simple revenue practices in our daily routine, we will be able to increase the return on our asset.
By Manav Khera
About Revnmore Consulting:
REVnmore Consulting is a Melbourne based global boutique consulting practice focusing on delivering revenue performance and market share growth through effective Revenue Management, Asset Management, Sales & Marketing and Catering techniques.
The team at REVnmore Consulting has over 16 years’ experience in Revenue Management. If you would like to speak to us further about these activities or support the ongoing revenue performance of your business, call us on 03 9006 7040 or visit www.revnmore.com