The Hospitality Management Company specialists in the fields of revenue management and e-commerce organize weekly meetings with sales departments and give recommendations on how to build an effective pricing policy.
The Consultancy of revenue management of hospitality enterprises from The Hospitality Management Company includes:
1) Carrying out the analysis of the price structure will allow to reveal the weaknesses in price formation and to provide for your hotel a flexible rate matrix including RACK RATE and BARS (Best available rate), divided into seasons typical for the region. The rate matrix will allow to download the most favourable prices to electronic sales channels, which will ensure the growth of hotel’s occupancy and RevPAR according to seasonality.
2) The Hospitality Management Company specialists will develop prepayment and cancellation policy of bookings in electronic sales channels in a way not to scare potential customers and to increase revenue from e-commerce sphere.
3) Compiling a competitor set is an important component of Revenue management, because it is impossible to manage revenues effectively without being oriented to competitors. The compilation of a competitor set includes: an assessment of the prices and the service quality of client's hotel; creating a rate shopper and competitor matrix. The Hospitality Management Company specialists visit the hotels of competitors personally and evaluate the quality of services in various parameters such as: location, condition of the building, restaurant, extra services and much more. The right choice of competitors allows you to see the full picture of what is happening, the so-called hidden demand, in your market segment through the information exchange with them.
4) At the meetings The Hospitality Management Company specialists give recommendations on price changes and the opening / closing of certain room categories based on seasonality, hotel’ occupancy and price positioning of competitors.
5) Assistance in making decisions about launching special offers in electronic sales channels, such as: Secret deal on Booking.com, Private sale on Agoda, etc. The peculiarity of these offers is the following: they can help to attract more customers, but in return the hotel will have to pay a huge commission. Based on a comprehensive analysis of your market segment and special offers from EDS, the specialists of Hospitality Management Company will choose for you the most effective offers, conditions and periods of their operation.
6) Based on the information and statistics provided by the hotel and the correct competitor set, The Hospitality Management Company specialists will develop an annual price strategy for your hotel. lf necessary the strategy can be discussed ad corrected at general business meeting.
Below is an example of one of the hotels in St. Petersburg with more than 300 rooms. The cooperation began in the second half of 2010. At that time, the hotel was not represented in electronic sales channels and The Hospitality Management Company provided a full range of services in the field of e-commerce and revenue management. Below you can see the results of activity from 2011 to 2013.
For three years of cooperation the amount of revenue from electronic sales channels was 74,765,773 roubles.
In 2011, the amount of revenue from EDS was 17,753,072 roubles and was divided between electronic sales channels as follows:
In 2012, the revenue from EDS was 25,769,248 roubles. In the fourth quarter: Hotels.ru, YourHotel, Synxis were additionally connected.
In 2013, the revenue from EDS was 31,243,453 roubles. Ostrovok.ru was connected in March and revenue from electronic sales channels was divided as follows:
The cost of this service: 45000 RUR. per month ( VAT exempt/ VAT free)
The cost of the package "Promotion in electronic sales channels" + "Income management": 60000 RUR. per month (VAT exempt/ VAT free)