April marks the beginning of the new financial year in India. Revenue Managers across the country will be busy preparing their budgets and making projections for occupancy and revenue growth. Revenue Managers need to focus on these 5 key areas to ensure optimal occupancy and profitability.
1) Budget each segment by month based on best suited business mix, which will yield optimal profitability.
2) Utilize historical data and patterns for your business projections. Have clear online and offline strategies considering seasonality.
3) Budget cost not only at the hotel level but also consider the cost under individual segments (cost of booking, commission etc.).
4) Consider your country’s GDP and inflation projections as a benchmark of growth, always try to overcome the figure.
5) Consider the economic and political conditions of your source market. A stronger economy will mean more business for your hotel and vice-versa.
In addition to the key tips above, Revenue Managers need to also consider the hotel pipeline for their hotel for the next financial year and beyond.
The Revnomix team has extensive experience working with hotels in preparing annual budgets and forecasting occupancy and revenue growth. Contact us at email@example.com to know more about our revenue management and channel management services.