5 must-do daily tasks for a revenue manager
Revenue Managers are a key asset in each hotel, overseeing the distribution strategy of the hotel and managing day to day yield operations. The job description may vary from hotel to hotel, but one thing that stays the same is the ability to maximize revenue and increase the average daily rate (ADR) for the hotel.
So, what is a daily checklist for all Revenue Managers?
1. Pick up
Time to check your overnight pickup on bookings. Was there a key booking period that may identify a trend? Perhaps an event has been announced, or maybe a wedding at a local hotel. If so it could be worthwhile (dependent on your availability) to put a minimum stay policy in place and increase your base right slightly. Also check what packages you have in place. In the case of large city events like concerts it may be a good idea to introduce an exclusive prepayment package for the key dates.
2. Check on the day rates and availability
Are your rooms available to sell tonight? Do you need to analyse your rates to pick up the rooms required? And if you do still have rooms to sell is this because of last minute cancellations? Perhaps your cancellation policy needs to be reviewed. For more details on reducing cancellations see here
Is your forecast realistic? Have external influences changed from when you did your initial forecast? We would advise all Revenue Managers to look a minimum of 12 weeks ahead every day. Are there any groups holding significant room stock but have yet to confirm? Is there any potential that these groups may cancel or wash down? Always make sure you will have a plan B to Z to cover all eventualities and need to ensure guaranteed bookings.
How can you upsell for over direct bookings to optimize profit? Can your team sell dinner or spa packages instead of Bed & Breakfast to potential guests? Can you enhance your guests to stay 2 or 3 nights instead of 1 or 2 nights? These are small gains but add up very quickly. Here are more tips on cross-selling and upselling.
Are you reviewing your competitors' rates? Can you check their rate how many rooms they have left to sell over any given night? If you increase or decrease your rate by $10 will they action the same? Choose a random date 60 days ahead and monitor your competitor rate on that date for the next 30 days – how many times do they adjust or even if they adjust it at all? The right pricing strategy is essential to a hotel’s success, so it is imperative to have knowledge of competitors' pricing to come up with a winning strategy that yields results.
A great revenue management strategy constantly re-evaluates the variables involved in order to move dynamically with the market. As the market evolves, the strategies and tactics of revenue management must be adjusted accordingly. Use these 5 to-dos every day and make sure you and your hotel stay ahead of the curve.