If the hotel is not the right tool to use and comply with revenue management techniques, they would face a risk is to always go after the other hotels – the technology has applications revenue management and inherits the benefits that these systems provide.
To help successful hotels on the path to revenue management, here are five common errors, as well as set some reasonable solutions.
1. Do not look to be nothing more than the “Big 5” OTAs
While many visitors make a reservation and travel services through online travel agents (OTAs), the hotel still has some untapped maximize the benefits they bring. These hotels usually focuses on 5 major OTAs than increase the number and relationship with the OTAs that they may have.
Increase the presence of hotels in the online environment by using as many channels as possible, including both small OTAs niche markets or specific geographic area, can bring profit good and worth considering.
There are many challenges when working with OTAs. The question is which platform to help manage this task effectively. That is the system that is designed to provide room rates, availability automatically on every channel, allowing them to receive Bookings from a large number of channels they want, whether there is a limited number of rooms.
2. Create the last minute Bookings through the ‘flash sales’ or deep discounts
Whether increased occupancy is always something that the hotel expected, but based on deep discounts will not do for the success of the sustainable occupancy. This tricks even dangerous, and hotels are doing affect their long-term success.
Instead of lots of discounts, hotels can find a way to sell rooms last minute through a carefully designed package and are valid for a short time to differentiate the customer. Some examples are packed room rates for other services such as breakfast and dinner coupon, discounted services or golfing tours. Such service packages will bring more bookings last minute without having to sacrifice room rates as well as create a new reference rate is very low, but is sure to affect the pricing strategy of the hotel.
3. Failed to create continuity in price
Do not create a uniform price on booking channels can destroy the trust of customers, and in some cases, the market value for the property hieu.Thach formula for achieving consensus price , or parity policy, is responsible for many transactions with many reservations and commission rates vary on different channels. Moreover, pricing strategy also must include special promotions, room types, rates are seasonal, daily prices, by month throughout the year. Therefore, the management of the selling price must be monitored continuously to achieve uniform prices.
Par value plays a very important role to attract Bookings from multiple channels, and the hotel should not create unique deals to a certain channel. However, that does not mean that the hotel is not done the trick, “making the product attractive” on a specific channel. Without prejudice if a potential customer feel they get a benefit if they are booking more immediately on that channel.
4. Unintentionally submission to the competition
A more basic errors that hotels often make when maximizing online revenue is not creating a symbiotic relationship between their website and the OTAs. In fact, the hotel’s website is the most profitable channel – because you do not pay commission to any third party – so many hotels have tried, overly, transfer customers on its website without taking into account the value of the OTA.
Tips “outrageous” that the hotel rooms usually do is play early on OTAs, only the last room for their own sites. This will cause property loss Bookings from OTAs because customers will ignore your hotel (because of overbooking) and moved to a hotel rivals on OTAs.
Need to balance between the transfer of the room to be able to provide the greatest efficiency with having enough room on the channel. The solution to this problem is to have the system online inventory management in real time as well as knowledge about which channels are the most profitable.
5. Do not pay proper attention to the hotel’s own website
Contrary to care errors “excesses” Hotel Website above, this error occurs when the hotel does not focus properly and fully to its website. The study, “Effects advertisers” conducted by Cornell University have provided data that there is a significant number of visitors will eventually look to and booked on the hotel website after comparing prices on the OTAs.
It is essential that hotels should have good enough booking technology on its Web site to ensure customers find confident, comfortable and fast when booking directly. The other important thing is to ensure price contracts, not only on every channel OTAs, but also on the hotel’s website. If a potential customer that the prices on the website of the higher property prices on the OTAs, the hotel is likely to take a booking that would have the highest profits for them.
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