Pricing is not only the deciding factor for Performance and Profitability but also for determining the value of an asset. Hotels should look at increasing rates for high demand days to maximise revenue generation and decreasing rate on low demand days to maximise occupancy.
Optimal Positioning will attract affluent guest who will contribute towards increasing room revenue and will support revenues for other departments like F & B etc. A hotel that is correctly positioned & presented tends to be booked more frequently than its competitors. Smart Positioning of the hotel can increase the value of the asset considerably.
Ongoing Pace monitoring is necessary to control booking volume for future dates. It will also guide in taking pricing controls in advance on busy & non-busy nights.
To identify Opportunities in business it is imperative that we study
Historical trends & Patterns like day of week, booking pace by day of week, demand & value trends, etc. This Business Intelligence can be utilized to forecast topline revenue, cost and profitability of the Hotel at multiple levels. The next step will be to align the hotels strategies with the data available