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The importance of revenue management for your hotel

The UK hospitality industry is booming. Staycations are more popular than ever, with tourism boards reporting record-breaking numbers of bookings and inquiries and, despite economic uncertainty with the imminent EU departure, the weakened pound is helping to make holidays to the UK more attractive to the international market too.

But for all the good news that comes with increased demand, hoteliers can’t afford to rest on their laurels. The industry is responding to the upsurge in trade and competition is on the rise.

There are also increased operating expenses to contend with. The rises in the National Minimum Wage and the National Living Wage for over-25s in April means staffing costs for many hotels have increased considerably, while food costs are also rising steeply.

Of course, this all results in added pressure on hotel profitability. Now, more than ever, it is crucial to keep a tight focus on revenue management to ensure your business remains buoyant.

How can good hotel revenue management tackle rising costs?

A good revenue manager will have the tools, knowledge and experience at his or her fingertips to be able to segment, forecast and price rooms according to the season, week, day and time.

Getting a proper revenue management strategy in place is the difference between setting a couple of rates then hoping for the best, and having sound and holistic financial analytics, historical data, information on pace of bookings and a track on the competition all acting to establish and corroborate price points that change on a daily or, if necessary, hourly basis.

This constant ‘finger on the pulse’ can make a world of difference to optimising hotel revenue and profits – enabling hoteliers to withstand rises in operating expenses as and when they arise.

Revenue management – where to start

The first step when implementing any new revenue management strategy is to make sure you and your staff have the necessary training and knowledge in place.

Even if your hotel happens to have sufficient resources for a dedicated revenue manager, the more personnel with an awareness of revenue management theory and practice the better.

This is just one of several ways that Octopus Revenue can help. We offer both classroom-based and online revenue management training courses, suitable for all levels of expertise. Whether it’s a refresher course on current practices for an experienced revenue manager, an introduction to key systems and procedures for an absolute beginner, or anything else in between, we have a course to suit.

See our training calendar for upcoming courses.

Another option, particularly for hotels that don’t have dedicated revenue managers, is to outsource. Again, Octopus Revenue can help with this, with affordable and flexible revenue management solutions that can be tailored to your individual needs.

Alternatively, you may just need our expertise on a short-term basis as a stop-gap to cover long-term absence or recruitment issues.

See our Services page for a full breakdown of the many services we can offer.

Good hotel revenue management isn’t about keeping your head above the water as operating costs spiral – it’s about empowering your business to be as successful, robust and profitable as it can possibly be at any one time, whatever the current economics.

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