Revenue management has always been a very strange section for budget hotel owners, and many people don't really understand the significance of revenue management! In fact, revenue management is the killer of the profitability of real chain hotels, and the success or failure of revenue management is directly related to millions of revenue. The following is what I have compiled. Welcome to read.

1. The first element of revenue management is cost control

1. Development cost;

As a vanguard, the development department plays a very critical role in the speed and quality of opening stores. First of all, development is a very systematic thing. In the first-tier cities now, basically every chain will have certain developers stationed all the year round; Many local brands give full play to the advantages of local snakes in the property development stage, with low rental cost and long signing time. The longer the signing time, the lower the depreciation cost, maintenance cost and outreach cost. In fact, the cost control of development is relatively easy, which is mainly divided into three parts: personnel salary, bonus and welfare, and expense subsidy. Generally, hotels adopt the following methods: basic salary+performance+meal supplement+words supplement+bonus, which belongs to high salary, high performance and high bonus. In fact, the development cost is not in this formula, but the professionalism and enthusiasm of developers are the key to the development cost. If the enthusiasm of developers is reduced, the company's development cost will definitely soar. Therefore, as long as the basic cost is well controlled, the more projects are developed in a shorter time, and the lower the cost of development is; However, if the developer adopts the counting bonus model, it will eventually have a great impact on the later management of the hotel; Because developers only pay attention to the assessment mode of quantity but not quality, hotels will eventually pay the price for it;

2. Preparation cost;

the preparation cost is the second part of the hotel cost, and it also belongs to the department with frequent problems! At present, with the rising prices, almost all budget hotels have exceeded their budget by more than 21% compared with 2119! Take our one-room comprehensive preparation cost as an example. In 2117, the XX hotel chain had a one-room comprehensive preparation cost of around 41,111. In 2118, the comprehensive preparation cost of a single house was about 42,111 yuan, in 2119, 45,111 yuan and in 2111, 51,111 yuan; From this set of figures, we can analyze what kind of level the construction cost of chain hotels is at present; We always mobilized Bajie to buy houses in second-and third-tier cities, saying that there would definitely be room for growth. I asked why? He said it was very simple. In 2117, when one of our stores was renovated, carpentry was one day in 81 yuan. In 2111, carpentry had risen to one day in 211 yuan. It can be seen that the civil construction cost of the house is around 2111. If the local house price is around 5111, it is really time to buy it! At present, among the budget hotels, the single room comprehensive cost of Jinjiang Inn should be the highest, ranging from 65,111 to 72,111. In fact, Jinjiang Inn is a state-owned enterprise, so it doesn't feel bad to spend other people's money. If it is really as economical as 7 days, it is no problem to control the single room comprehensive cost at 61,111.

3. Outreach cost;

outreach costs! This foreign budget hotel can't understand the large expenditure project, which is an unavoidable problem in any city in our great China. I wonder if it will be cross-provincial to talk about this issue now. Bajie will be a little obscure in this respect, so that everyone will not see the follow-up posts. In fact, the cost of outreach is indeed high in all hotels. The larger the chain, the more difficult it is to do, and the better the second-line brand is to carry out! Why? Because large chains need to be listed and their financial standards need to be standardized, there is no outreach cost in the financial indicators of enterprises listed on Nasdaq or Hong Kong stocks. I don't want to be given the standard of 45,111 yuan for the outreach cost of the famous scenic spots in ................. in 2119, with the length of 2111 and the length of 2111, but on the whole, only 41% of the single stores can be controlled within this range, and most of them must exceed the standard. Bajie has seen a classic one. The manager invites him to dinner, and the supervisor specifies which hotel and what wine to drink. After five flavors of food and eighty years of wine, the manager took out an envelope and sealed it with 3111 yuan. Handed it to Suochang, who took the envelope and squeezed it, saying that friends don't have to do this; The store manager went to the bathroom and added 2111 yuan. After the cable manager took it, he said directly that the brothers would talk later. Thin envelopes are friends, but back envelopes become brothers. There is also a classic case. The manager of XX hotel chain usually comes out for dinner, but he can't make an appointment at ordinary times. Before New Year's Day, the vice-president takes the initiative to call and ask the manager to drop in. The manager took the envelope and found that there were many people in the office, so he didn't have the nerve to take it out. I took the vice-cable and sent the manager out for the first time, and sent him to the gate of the compound, and took the initiative to shake hands and say goodbye. Fortunately, the manager was eye-catching, and immediately took out the guy who was preparing, put it in the palm of his hand, and handed it over at the moment of shaking hands. The vice-cable was put in the left pocket. In fact, from these problems, we can roughly analyze the current outreach cost, which is indeed a very important one;

If you want to save outreach costs, Bajie can remind you of a few things:

A: Start from the neck of the jurisdiction, but not too much, nor too early contact, otherwise he will become a leech and stare at you all the time;

B: by knowing the length of the deputy cable, we can find out the tone. If it can be done by one person, we can give him 81% of the outreach cost, and he will directly get through all the links, which is economical, environmentally friendly, low-carbon and time-saving. But the disadvantage is that I am worried that I will not be able to refund the paid costs in the future;

C: fire protection and special lines are the two most difficult sections, especially special lines, which belong to the management of fire fighting forces, and the general relationship is difficult to enter. Please pay special attention to these two sections;

D: To sum up: find the right person, contact key people, choose the right time, find the right place, eat the right meal, give the right gift and do the right thing;

4. Operating costs;

Operating costs are the bulk of store expenses, so many hotels try their best to find a suitable node between customer satisfaction and compression costs. I remember an advertisement from GE Company: The greenest energy in the world is the energy saved. This sentence is very incisive Let's take a look at many large companies changing bosses. What is the first thing that the boss did after the past? Answer: It is to reduce the cost, because it is impossible to greatly increase the revenue in a short time, so the best way to make the information very beautiful is to reduce the cost, so that the profit can be greatly improved in a short time; So how much does our operating cost account for in our cost? Sorry, Bajie doesn't have standard information here either. The reason lies in the rental cost of rent, because the rental cost gap of houses is too big; Some 1.5 yuan/day/square; Some 1.2 yuan/day/square; Some 2 yuan/day/square; Some 2.5 yuan/day/square ............., so Bajie can't give a specific value;

everyone's standards for operating costs will be different. The operating costs of budget hotels are roughly between 45 yuan and 65 yuan per room/day; The operating cost of 111 yuan hotel is roughly between 31 yuan and 41 yuan every day; This operating cost includes: washing, labor cost, energy consumption, guest supplies, etc., excluding depreciation and interest, and sharing; Therefore, budget hotels are not the kind of profiteering industry that everyone imagines at all, so I advise you not to blindly jump in when you see the rapid expansion of Home Inn for seven days. There is a strong capital chain behind people, which is not comparable to this small monomer; There is no denying that there will be some projects in budget hotels that can return to their original capital within 1 years, but that is a case after all, and such projects should not exceed 3% in the whole industry; And high returns are concentrated in second-and third-tier brands. Why? Because second-and third-tier brands have a very strong network advantage in the local market, they can often win properties with very good geographical location and very low rental cost. On the basis of similar operating costs and a slight gap in turnover, the key point of profit is the rental cost;

5. Lease cost; Rental costs are the bulk of hotel costs! Like Ibis, the speed of buying land directly in Gai Lou is too slow and the capital chain is too long; Ibis, which has always been good at this, has also changed this store-opening mode and turned it into a rental property store-opening mode. In fact, if Ibis expects the soaring real estate prices in China, it is estimated that selling hotels around the world will also implement the Gai Lou model of buying land in China; Compared with the initial stage in 2115, the rental cost of first-tier cities has been greatly improved. In 2115, in the core area of first-tier cities, the daily rent per square meter was about 1.1; It became 1.8 yuan in 2118 and 2.5 yuan in 2111. The increasing number of brands directly leads to a sharp rise in the cost of suitable property! At present, in first-tier cities, basically every brand has more than two developers. I remember our project in Hangzhou, and our developer quoted 1.3 square meters; Pudding people offer 1.5; 7 days offer 1.7, Home Inn offer 2.2, Vienna offer 2.5. Look at ...................., that's how the cost goes up! The development department is under the pressure of the number of stores opened, and the operation department is under the pressure of investment income; The company is under the pressure of shareholders; Everyone said that Yali pear is very big;

The worst thing is that the available resources in the first-tier cities are almost exhausted, and there is no suitable quota for projects in a large city! Like Shenzhen and Guangzhou, the streets are full of developers, but we can't find a project for a year and a half, worrying about the South China branch of N brands! Almost every large brand of South China branch was criticized by the company at the end of the year!

6. Share the cost; Pool cost belongs to the hidden cost of hotel investment, which is rarely considered by ordinary people! Especially for single hotels, non-professionals are not familiar with this piece. Shared costs include: depreciation/interest/management company expense sharing/; At present, the depreciation of budget hotels is divided into hardware depreciation and software depreciation. It is more appropriate to subtract about 25% depreciation from operating income. After all, the average budget hotel will have a relatively large maintenance in about 5 years; Let's not talk about interest here. Different sources of funds have different standards. The cost sharing of the management company is relatively large. The monthly cost of the headquarters of XX hotel chain is more than 4 million, not to mention the leasing cost and energy consumption cost of the company. ......................... < P > Second, the second element of revenue management is revenue increase

1. Housing price strategy; House price has always been the core of income management. Many income management regards the flexible change of house price as the core of income management. In fact, the control of house prices does account for 55% of the income. How should the house price strategy be formulated? Generally speaking, there are two schemes for setting house prices. The first one is the cost inversion method. For example, the cost of each room reaches 111 yuan x expected occupancy rate +111%; The second is the price positioning method, which sets the price of its own store according to the price of the same competitor. In different years, different seasons, different times, different customers and different competitors, there should be different price positioning under different business conditions

2. Room strategy; Our room price determines our profitability! House prices change, so is the room type unchangeable? The answer is no. Many of our hotel chains are now facing the allocation of single and twin rooms with great scientific nature! For example, in places where commercial customers are relatively concentrated, the proportion of high-end single beds should be appropriately increased, and in places where middle and low-end customers are concentrated, the configuration of double-bed rooms also needs to account for a certain proportion. Under normal circumstances, the ratio of single bed to double bed is about 7:3, which is relatively suitable! All our rooms are priced according to beds. Generally divided into: economic room-darkroom without windows or room with small area; Big bed-a room with a window or a large room area; Business list-a room with large room area, good orientation and good room software configuration; Pushuang-a room with two beds, usually between indicators; Business double-a room with a larger room area and a better software configuration. There is also a key point in our room type, that is, it can play a buffering role for customers when the price is raised; With the rising cost or the rising room opening rate, then our price increase must be imperative. However, the abrupt price increase will generally lead to the loss of 11%-31% of the hotel guests, and it will take a lot of extra cost to stabilize the customers behind the hotel. If competitors do some targeted actions at this time, the hotel's revenue will be greatly affected. If our price increase is not a direct and blunt price increase, but through the adjustment of some room types, then the degree of customer acceptance will be much higher;

3. WOT management of price increase; ; To be continued, see if there are any replies. If there are many replies, Bajie will continue to write.

4. RevPar analysis;

5. Analysis of occupancy rate;

6. WOT promotion management;

7, thousand yuan of artificial output;

7. Open source and throttling management;