Revenue management in practice – Two things you should be doing!

By January 28, 2019 No Comments

Melissa Kalan, founding director of the Australian Revenue Management Association (ARMA) shared her ‘Two Top Tips’ for effective revenue management, and we couldn’t agree more; 
1. Forecasting & Predictive Analytics  
Adopt a forward-looking strategy to monitor changes in supply and anticipate demand.   
2. Frequency 
Bookings are dropping in all the time, across various stay dates so it’s important to react to real-time data in order to optimise returns. This is an ongoing process and not a ‘set and forget’ pricing method. 
This is why it’s important to regularly be monitoring your availability and booking movements, and why you should always be looking up to a year in advance  instead of only looking week to week, or month to month. Although majority of your bookings may be short-lead, it’s important to keep looking at your long-lead bookings in advance to allow yourself enough time to pick up on movements and change your rates. This will help you to prevent lost revenue opportunity! 
If you’re interested in reading more on the subject of revenue management, below are a few articles from some of our industry partners that discuss the concept further… 
PRENO: Why Revenue Management is Important for Accommodation Owners 
SEEKOM: How Dynamic Pricing can Increase Revenue and Lower Costs 
STAAH: How to Increase Yield 
PRENO: What the accommodation industry can learn from the airline industry