use revenue management to boost profit at your independent hotel

Use Revenue Management to Boost Profit at your Independent Hotel

November 24, 2015

To Tweet about the Webinar……

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Founded byIndustry Leaders

World-ClassTechnology Development

Committed toCustomer Success

@OptimizeDemand

About Duetto

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New Partnership

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Dan YackerVP, Global Strategic Alliances

Duetto delivers cloud-based revenue strategy to hotels, allowing them to maximize profits through actionable data to better manage pricing, revenue and business mix decisions.

Past Experience:

Agenda

▍Learn the basics of revenue management

▍Common pricing mistakes to avoid

▍Use Open Pricing to better manage distribution

▍Automate functions with alerts and price rules

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Revenue Management Introduction

The primary aim of Revenue Management is selling the right product to the right customer at the right time for the right price — and on the right channel.

Inventory /Capacity Demand

Price

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Do I need revenue management?The 7 mistakes you can’t afford to make

#1 Selling out too soon

#2 Not changing your rates

#3 Pricing by gut feel

#4 Reacting to competition price changes

#5 Selling rooms on first come first served basis

#6 Linking different price points

#7 Not adjusting pricing 24/7

What is Required to Thrive?

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How to Thrive

Start Practicing Revenue Judo

1.Redefine revenue strategies

2. Improve your forecast

3. Implement an Open Pricing strategy

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Revenue ManagementA systematic approach to segmenting, forecasting and pricing that can drive efficiency and profitability.

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5 Key Reasons to Forecast

Staffing ProductInventory

DevelopmentWork

PerformanceEvaluations

Pricing

Better Data = Better Forecasts

Reviews & Social Media

Competitor Pricing Data

Booking & Reservation Data

Web Shopping Regrets & Denials

Weather

Air Traffic

Traditional Revenue Management

Traditional Revenue Management

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One-Rate

Seasonal

Weekday/Weekend

BAR

BAR by LOS

Open Pricing

PricingApproaches

Pricing Types

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Seasonal

Pricing Types

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Seasonal

Best Available Rate (BAR)

Pricing Types

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Seasonal

Best Available Rate (BAR)BAR by LOS

Pricing Types

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Seasonal

Best Available Rate (BAR)

Open PricingBAR by LOS

Regain Control

▍Independently price every single segment, offer and room type

▍Maximize revenue over high demand and need periods

▍Keep all channels open and benefit from the “billboard effect”

BAR Pricing = Lost Opportunity

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BAR 2$200

BAR 1$100

Retail/ Transient Rate Code: BAR

15%

With BAR Pricing comes static:- Room Type Differentials- Discounts/ Offers

45% Occupancy75%

BAR 3$300

Traditional Pricing

Day 1 Day 2 Day 3 Day 4

CAPACITY

AAAPromo Rate

10%20%

✔✔

AAAPromo Rate

10%20%

✔✔

✖ AAAPromo Rate

10%20%✖

AAAPromo Rate

10%20%

✔✖

Open Pricing

Day 1 Day 2 Day 3 Day 4

CAPACITY

AAAPromo Rate

10%20%

✔✔

AAAPromo Rate

10%20%

✔✔

10%20%

5%✔ AAAPromo Rate✔ 5%

AAAPromo Rate

10%20%

✔✔ 5%10%

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How an RM system will impact your job

Review and Monitor AlertsReviewing Revenue Opportunities

Quicker decisions

OTB, PickUP, Forecast, Price Recommendations (LIVE from

PMS)

Integrated data such as STR, Competitor data, Online

Reputation, etc can all be seen on the same platform.

Price recommendations according to setup business

rules & forecast are directly sent back to PMS

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An RMS gives you back time, so your team can be more strategic and less operational

4 hours on the same platform – no more Excel

RM Daily Tasks

No manual report running and updating spreadsheets

One platform for all! No more updating several excel spreadsheets No Speed Constraints!

.No more Excel and logging in to various platforms

Saving time and removing the risk of human error

Your team can be more Strategic and less operational

How an RM system will impact your daily job

▍No manual report running and updating spreadsheets

▍Near real-time data

▍Accurate data

▍Easy user interface

▍Flexible reporting

Exploring the ROI of a revenue management system

Hard ROI

▍RMS increases in RevPAR through OCC and ADR

Exploring the ROI of a revenue management system

Soft ROI – Save time

▍No more manual data entry or reports

▍Customized reports and alerts

▍Spend more time being strategic

Questions?