Hotel revenue management – “the art of taking a business to its peak growth”. But, the rest of the world spiralling around the COVID-19 crisis has brought this element to a screeching halt. All the standard revenue management strategies seem to be out of trend.
The question stands: how do we hoteliers rise after this healthcare and financial crisis? Read below to know the answer!
Changes In Hotel Revenue Management Aftermath COVID-19 Economic Fall Down
Post COVID-19, the hotel revenue management strategies are driven more towards increasing demand and getting more eyeballs to the business. This is not what typical revenue management services for hotels used to focus on.
The reason behind this is quite clear – with travel restrictions being lifted, hoteliers are battling against numerous competitors. They have devised strategies that can keep them far ahead of competitors.
Let’s see what these crisis revenue strategies are!
Practical Revenue Management Strategies To Implement After Economic Downturns
Dropping Room Rates Doesn’t Always Work
The first big temptation that almost all hotels have post-crisis is heavily dropping room rates. They are expecting this to be a winning marketing strategy to increase demand. But as per the top revenue management consultants, the result of this strategy is not all positive.
It surely brings in short-term growth. But if everyone starts adopting this strategy, this will quickly lead to a “race to the bottom”. Hotels will have more difficulties to re-increase their rates later on.
Therefore, a sensible revenue management strategy is to stick to the usual price rates. Having said that, there are a few ideas to catch some demand without dropping prices –
- Stay for 3, Pay for 2 options
- Provide complimentary breakfast
Put Empathy And Kindness At Play
Post-COVID, guests are looking for flexibility when booking travels and hotels. Any strict terms and conditions like no cancellation policy are a complete turn-off to them. The future has become so uncertain that we are hesitant to commit to anything.
A few kind tactics for this are –
- Offer “Book Now, Cancel Later” options.
- Communicate with your guests what steps you’ve taken to ensure their health and safety.
- Encourage change of dates rather than full cancellation of the stay.
Don’t Put Down Micro-Management Efforts
Yes, even in these troublesome financial days, hoteliers should continue to focus on micro-management. There will be days when a certain room type will sell faster than on other days. Grab such opportunities and increment the supplement to make a little extra money.
Micromanaging the prices and room type supplements positively impacts the average room rates. And right now, every tiniest effort counts more than before.
Stay Ahead Of Competitors
Even if the global crisis has crushed the hotel business left and right, hoteliers should still focus their efforts to keep up. Upload your new hotel rates and advertise them all over your marketing channels. Speak out why travellers should choose your hotels over your competitors. Inculcate the newest hotel trends like wellness retreats and workcations before any nearby hotels do that.
Grab The Hands Of The Top Professionals To Get Back On The Game
Rebounding after this unpredicted crisis has been tough for hoteliers all over the world. But with the adept professionals from Incode Business Services, you can see your hotel’s recovery easily in a few days. We can curate customized revenue management strategies to boost your hotels’ business better.
Connect with our team to know more!