1. USING REVENUE MANAGEMENT

2. OBJECTIVES OF SESSION INTRODUCTION REVENUE MEETING
POTENTIAL HIGH DEMAND TACTICS
POTENTIAL LOW DEMAND TACTICS
IMPLEMENTING REVENUE STRATEGIES

3. INTRODUCTION
REVENUE MANAGEMENT IS LONG TERM PROCESS OF MONTHS & YEARS & NOT ONLY OF FEW DAYS
REGULAR REVENUE MEETINGS ARE TO BE CONDUCTED FOR A SUCCESSFUL R.M. MODEL
REVENUE MEETINGS SHARE IMPORTANT BUSINESS INFORMATION LEADING TO R.M. DECISIONS

4. REVENUE MEETING REVIEWS THE THREE DAYS FORECAST
MAKE SURE STRATEGIES ARE IN PLACE
REVIEWS THE PREVIOUS DAY’S OCCUPANCY, ROOM REVENUE, ADR & YIELD STATISTIC
REVIEWS THE BOOKING PACE FOR NEAR TERM BUSINESS
REVIEWS OLD BUSINESS
PRESENTS NEW BUSINESS

5. FORECASTS FOR DEPARTMENTS
KNOWING HOW MANY GUESTS ARE IN HOUSE CAN HELP FOOD & BEVERAGE DEPARTMENT TO BE PREPARED
RATE CHANGES & ADAPTATIONS IN SELLING STRATEGY AS PER THE SALES DEPARTMENT
OCCUPANCY PERCENTAGE WILL AFFECT HOUSE KEEPING & BELL SERVICES

6. IDEAS FOR STAFF IN R.M. CREATE A SENSE OF COMPETITION
POST MEASURABLE, SPECIFIC GOALS SUCH AS BUDGETS OR OCCUPANCY DATA
SHOW STAFF MEMBERS HOW MUCH THEY MAY INFLUENCE THE TARGETS
PROVIDE INCENTIVES OR RECOGNITION FOR GOAL ATTAINMENT
TRAIN YOUR STAFF

7. POTENTIAL HIGH DEMAND TACTICS
CLOSE OR RESTRICT DISCOUNTS
APPLY MINIMUM LENGTH OF STAY RESTRICTIONS CAREFULLY
REDUCE GROUP ROOM ALLOCATIONS
TIGHTEN GUARANTEE & CANCELLATION POLICIES
RAISE RATES TO BE CONSISTENT WITH COMPETITORS

8. POTENTIAL HIGH DEMAND TACTICS(CONT.)
CONSIDER RATE RAISE FOR PACKAGES
APPLY FULL PRICE TO SUITES & EXECUTIVE ROOMS
SELECT DATES THAT ARE TO BE CLOSED TO ARRIVALS
EVALUATE THE BENEFITS OF SELL THROUGHS
APPLY DEPOSITS & GUARANTEES TO LAST NIGHT OF STAY

9. EXCESS DEMAND TACTICS (APPLY HIGH DEMAND TACTICS)
UNDERSTAND THE CAUSES OF EXCESS DEMAND
IS IT ONE DAY OR MULTI DAY EVENT
WHAT TYPE OF EVENT IS IT?
WHAT OTHER PROPERTIES ARE LIKELY TO SELL OUT DUE TO THE EVENT?
IS THE DEMAND LOCAL OR FOR A LARGER AREA?
ARE THE POTENTIAL GUESTS LIKELY TO ACCEPT THE MINIMUM LENGTH STAY RESTRICTIONS?

10. POTENTIAL LOW DEMAND TACTICS
SELL VALUE & BENEFITS
OFFER PACKAGES
KEEP DISCOUNT CATEGORIES OPEN
ENCOURAGE UPGRADES
OFFER STAY SENSITIVE PRICE INCENTIVES
REMOVE STAY RESTRICTIONS
INVOLVE YOUR STAFF(INCENTIVES)
ESTABLISH RELATIONSHIPS TO GET REFERRALS
LOWER RATES

11. IMPLEMENTING REVENUE STRATEGIES
HURDLE RATE
MINIMUM LENGTH STAY
CLOSE TO ARRIVAL
SELL THROUGH

12. HURDLE RATE
LOWEST RATE FOR A GIVEN DATE BASED UPON DEMAND IS HURDLE RATE
HURDLE RATE FLUCTUATES ACCORDING TO HOTEL’S YIELD DESIRE & MARKET CONDITION
INCENTIVES MAY BE PROVIDED FOR LONGER GUEST STAY OR SELLING ABOVE HURDLE RATE

13. MINIMUM LENGTH OF STAY
RESERVATION ACCEPTANCE MUST BE FOR ATLEAST SPECIFIED NUMBER OF NIGHTS
DEVELOPS A RELATIVELY EVEN OCCUPANCY PATTERN
IT IS COMMON APPROACH FOR RESORTS & HOTELS ALSO USE IT DURING HIGH OCCUPANCY

14. CLOSE TO ARRIVAL
WHEN FRONT OFFICE IS EXPECTING HEAVY CHECK INS ON A GIVEN DATE, THE ADDITIONAL ARRIVALS WILL NOT BE ACCEPTED
THE FRONT OFFICE MANAGER DECIDES THE C.T.A
THE RESERVATIONS OFFICE SHOULD TRACK THE NUMBER OF RESERVATION REQUESTS DENIED DUE TO THIS RESTRICTION

15. SELL THROUGH IT IS MINIMUM LENGTH OF STAY WITH SPECIFIED DAY/DAYS
HOTELS USE SELL THROUGH STRATEGY TO OVERBOOK IN PEAK DAY & COVERS NO SHOW, EARLY CHECK OUT OR CANCELLATIONS
THE PEAK PERIOD MAY BE EXTENDED OR ATLEAST MINIMISES THE EFFECT

16. QUESTIONS
THANK YOU