Seasonal business strategy from the hotel revenue management

The hotel is an industry to provide services for the life of the industry, so its product evolution is the most essential form of service. But all products have a certain degree of timeliness, the hotel's service products are no exception, the following will be the timing of the hotel's products to text to present to you, I hope you have a reference role in the operation of the hotel!

The most direct reflection of the hotel's timeliness is the hotel's low and peak seasons. And the various stages of the business strategy must be different, which requires us to be sure to take the necessary peak season business strategy to improve the hotel's profitability when the peak season comes. And off-season when we should take what is different from the peak season when the strategy? Here we can take two factors affecting the hotel's profitability out to explain:

Occupancy and average room rate:

In the off-peak season occupancy is an important controllable variable factor, but it can not be said that it is a measure of the importance of the business of a hotel standard. Occupancy rate is good when the natural hotel business is very good, this statement to the uninitiated to listen to what seems to be a true proposition, but really did the hotel people will know that occupancy rate it reflects only one aspect of the hotel business. I give a formula we understand:

occupancy * average room rate = yield (actual occupancy / total number of rooms = occupancy, total room revenue / total number of rooms = average room rate)

Many times we will take this formula to reflect the revenue management of a hotel, the hotel's revenue management is "five most "; that is, the hotel's products can be at the best time, at the best price, through the optimal channel, sold to the most suitable customers, in order to achieve the maximization of hotel revenue.

The following is an analysis and summary of the two variables factors:

Peak season when we naturally do not worry about the occupancy rate of the high and low, but the peak season is to say that our yield must be improved. One-dimensional increase in occupancy rate is not a smart approach, because the hotel's volume will have a certain limit, the volume of the range is there, no matter again want to improve occupancy rate is unlikely to achieve breakthroughs (the volume of the easiest way to say is the day's maximum flow of passengers). I think the hotel occupancy rate in the peak season should be limited to a certain range, beyond the warning value should cause us room control enough attention, otherwise it will cause a lot of unnecessary trouble or even direct economic losses. The most important thing for the hotel in the peak season is to maintain long-term stability within the range of the warning value, the most important thing to start to grasp the work should be our average room rate. As a whole, although the mathematical relationship between occupancy rate and average room rate is an inverse proportion, if we can maintain a reasonable occupancy rate in the peak season, and then strive to improve the average room rate, it will be a great help to our profitability. And what aspects of the average room rate to start from is the most specific question we should consider, how to improve the average room rate? I will start from the following aspects to summarize:

1, first of all, we have to analyze our hotel source structure. The hotel's source structure which can be raised in the peak season when the price, which can not be adjusted, we have to start from the interests of the entire hotel to target the choice. For example, conference travel team room rates are low, we can increase appropriately. Exactly how much to raise depends on the actual situation of each hotel. The hotel's door-to-door casual guests, hotel members guests, hotel agreement guests, etc., a detailed analysis, we will find that there is a lot of space to raise prices, if you are worried about raising prices will bring a certain loss of customers, do not worry, this is the best time to optimize the structure of the source, usually some of the lower prices of the source of customers just to categorize, according to the amount of contribution to the price adjustment with them and to decide to stay or go on this source of customers.

2, price adjustment process we have to appropriate. Do some publicity and promotion to assist the rise in prices, leaving customers with a psychological buffer and transition, so that the customer's psychological gap is not too large, so that customers continue to retain a promise for your products. For example, we can take in the official website to carry out some preferential activities, such as electronic coupons, booking attractions tickets train tickets and other value-added services, so that the customer's attention to the services she can enjoy above, so that the price was raised is not so much that the customer does not want to consume next time the idea of.

Specific revenue management can also be considered from the following aspects:

1, market and customer segmentation and demand forecasting

The concept behind revenue management is to effectively manage revenues and inventories through the difference in pricing, which is based on the elasticity of demand of the selected market segments ". Each hotel has its own market niche, but there are still many differences in customer categorization, source channels and consumption characteristics. Different categories of guests consumption needs, prices and consumption characteristics are also very different, so its consumption behavior mode is also different. Scientific segmentation of the market and guests, for the hotel to control resources, improve revenue to provide accurate information sources. On the basis of market segmentation and guest information, it can make relatively accurate forecasts of different categories of guest demand, and use different pre-sale methods and price differentiation control, dynamic management and marginal revenue management, so that the use of resources to minimize the risk. If the risk of resource usage can be minimized, the expectation of hotel revenue can be optimistic.

2, to regulate the occupancy rate of the front door of the casual guests

The average room rate and the average occupancy rate is the impact of the two major factors of the hotel room revenue. And the door of the casual guests of the rental income and the hotel's average room rate has a significant impact. Therefore, the agreement should be moderately regulated guests and the door of the respective occupancy rate of casual guests, in order to achieve the maximum average hotel room rate. In the hotel, the general agreement guest room rate is lower than the door to the casual guest room rate, and the agreement guest is usually negotiated by the marketing department to contact, due to the market competition incentives and hotel management on the marketing department's attention to the strength of the work of the pressure to strengthen the marketing department, the marketing department will continue to do everything possible to expand the coverage of the agreement guest and as a result of the department's work performance. As the marketing department's coverage of agreed guests increases, the occupancy rate of front-door casual guests will go down. If the maximum average hotel room rate is to be guaranteed, it is necessary for the hotel authorities to coordinate and analyze the market situation and the historical information on the rental income of the marketing and front office departments, so as to sort out the appropriate front office casual guest occupancy rate, in order to prevent the downward trend of the front office's casual guest occupancy rate. When implementing front office revenue management, this issue should attract enough attention from hotel management.

3, dynamic price setting

Price is the most sensitive consumer factors, is the sales of the most direct management leverage, is the main means of increasing or decreasing hotel profits. Now in the supply exceeds demand, competitive market situation, almost all hotels on price management by a single static price development for multiple prices, market competitive optimization price. Dynamic price includes the agreement of the company's bulk guest discount price, travel team rates, conference team rates, long-stay guest rates, bulk guest floating price. For the hotel, in the development of dynamic prices, the most valuable reference value of the information data is the same area with the same star-level competitors hotel classification room rates.

4, overbooking control

As there is a certain difference between the pre-sale and the actual occupancy, so the hotel usually implement a certain percentage of overbooking to reduce the pre-sale and the actual occupancy of the difference in the loss. What percentage of overbooking is appropriate depends on the collaboration of the front office and marketing departments, analyzing historical data to determine a reasonable probability.

This can be done in several ways:

Reconciling reservations. Some guests book rooms far in advance, and in the period leading up to check-in, there will be some guests who, for one reason or another, will not be able to arrive recently or have canceled their trip, but not all of them will have proactively notified the hotel. The front office department should check with the guest several times by phone before the arrival of the guest, once the change is quickly made adjustments, and notify the relevant departments to re-book the room or sell it to other guests.

Increase guaranteed reservations. Pre-charge a deposit or require a credit card guarantee to pass the risk on to the guest, especially during peak periods such as holidays and major local economic and trade events.

Increase coordination with marketing. Because most of the booking guests by the marketing department of the agreement unit operation, and the marketing department of the marketing department in order to expand their own performance, generally relaxed requirements to the agreement unit, so it is necessary to produce overbooking to strengthen the communication with the marketing department, to strengthen the control of overbooking, to reduce the loss of the hotel.

The general formula for overbooking is as follows:

Overbooking = booking temporary cancellation of the number of rooms booked + expected to book the number of rooms without guests + expected to check out of the number of rooms - expected to delay the departure of the number of rooms.

Each of the above formulas have the word "expected", to solve this problem as accurately as possible is not easy, it is necessary to rely on the accumulation of historical information (business figures of the various business hours) and analyze, and strengthen the front office and the marketing department of the communication, to determine a roughly appropriate ratio.

5, holidays and major events price demand control

Holidays and major events in the market is often the best time for the hotel's profits. How to use this time to get the maximum revenue, is the hotel management and front office department best play management revenue effectiveness of this system. The management motto for this time period should be "when it's time to strike", when it's time to raise prices, without having to think too much about other subsequent impact issues. Otherwise, the time is not waiting for me, the opportunity is no longer coming. In a market with a short period of "demand is greater than supply", the most basic consumer psychology is "demand" rather than "supply".

6, team sales and sales agent management

For team sales such as travel agency travel team prices, should be adjusted according to each stage of market changes, mainly the total consumption of the travel agency and the hotel's average occupancy rate, the average room rate of the ups and downs of the situation and the local market economic indicators, timely adjustment control. And for sales agents such as network booking center agents, you can conduct an annual analysis of the market situation after the readjustment of the price of the new period.

7, the full use of network booking and booking center resources

Network booking and booking center of the emergence and development of the economic market is an inevitable and progress, but also the economic market segmentation of a result of the industry. Today, the two major domestic online booking companies, Ctrip and Yilong, occupy more than 80% of the market share in the online booking business, and they have stabilized their market position by introducing strategic investors through capital operation and listing their stocks on the stock market. The emergence of these network booking room "middlemen", for single hotel or hotel group member hotels, are a kind of low-cost, good income for the utilization of resources, for the hotel's original marketing means is a useful supplement. These network booking companies are at least a collection of thousands of hotel booking network, on the one hand, to provide customers with a greater choice of space, close to the customer's psychological needs, on the other hand, is a single hotel or hotel group self-organized booking network scale can not be compared, even the largest hotel group, under the management of the hotel is only a hundred or so. We do not have to mind the network "booking middlemen" existence and development will take away part of the hotel's profits. There is no free lunch, there will be a loss, we should adopt a "each do their best, each take what they need" attitude, encourage member hotels to cooperate with them, * * * * Rong * * * * * life, together with the development.

According to the United States Cornell Institute of Hotel Management Hotel Industry Research Center Bill. Carlton in a newly written report predicted that in the next few years, more than 20% of customers will be booked through the booking completed online. This compares to 8.34% in 2002. And in the operating statements of the member hotels of the Oriental Capitol, we can find a considerable number of hotels where bookings through Ctrip, E-Long and other booking centers have reached about 10 - 11%. Therefore, for hotels, whether they are single hotels or member hotels of group companies, we should fully utilize the resources of these online booking agents in order to increase the hotel's profitability.

8, the hotel attached resource management

The hotel's attached resources mainly refers to the catering, entertainment facilities and conference facilities outside the guest rooms. These attached resources for the sales of the front office department is also a good product resources. Front office in the implementation of revenue management, should invite the front office staff to familiarize themselves with the hotel these attached resources, sales price policy and price details, and the front office staff marketing training, master marketing skills, in order to target the development of these resources sales.

9, comparison and analysis of business conditions

The front office department should be every month of various business data, including occupancy rates, various types of rooms, customer segmentation, a variety of attached resources sales across the line in the history of the data comparison, the most important thing is to compare and analyze with the previous year's data, and then combined with the market competitors of the same kind of other information for detailed analysis. The information of similar hotels in the market is analyzed in detail. These valuable marketing data as a reference for the front office to formulate the price policy of the period of decision-making basis, and report to the hotel management.

10, combined with the customer value of revenue management

The value of different customers is not the same, and sometimes the value of the customer can not simply be defined by a profit index. For example, in the second-tier cities of the hotel, foreign guests are relatively few, this time if the hotel knows how to use more favorable prices to attract more foreign guests to stay, even if these foreign guests stay at a price lower than the price of the domestic guests, and they bring a comprehensive value of the hotel, such as the feeling of politeness and etiquette, such as foreign guests of the consumption habits of familiarity and reference, such as the concept of consumption and humanistic mood of the broadcasting, including the hotel's foreign language drill The change of the atmosphere of the hotel's foreign language practice will have a good comprehensive effect.