As is my practice, I looked for a simple definition of revenue management; how it came about, and how it is being utilized. In straightforward terms, revenue management is a technique to optimize income revenue from a fixed, but perishable inventory. The challenge is to sell the right rooms to the right customer at the right time for the right price.
RRRRRRRRevenue Optimization strives to balance Growth and Risk to achieve Sustainable Profitability. It’s about getting the most from every investment into your Business. The more Efficient your Business is, the more Profitable your Business is.
Access Hotels and Resorts prides itself on providing tightly integrated solutions to maximize per guest profit and hotel efficiency. Whether maximizing online distribution channels, integrating the front-and-back office systems or implementing an aggressive yield management solution, we always seek to use proven strategies to strengthen the bottom line.
At Mihran Kalaydjian Hospitality Consulting, we orchestrate leadership like no one else. We not only engender a culture of guest satisfaction, but set the bar for financial performance as well. By bringing unique solutions, management approaches and metrics to the complex task of hotel operations, Mihran Kalaydjian Hospitality is able to produce outstanding results in key performance measures such as REVPAR, Occupancy and NOI. Consistently recognized and awarded by the brands under which it manages, I constantly perform in the highest percentiles of guest satisfaction and financial performance.
Revenue strategy #1: Maximizing pricing
The revenue-maximizing price is the cost at which a business will make the most revenue for a given item. In order to find the price that will maximize revenue, a business must either experiment with a variety of pricing strategies to see which works the best, or have a precise understanding of the demand curve of the product it is selling. MKH Consulting commits exhaustive resources to provide clients a leading edge in the complex myriad of electronic distribution channels, as well asto manipulate the positioning of properties in all distribution channels to fully maximize revenue yield.
Revenue strategy #2: Optimizing channel distribution
The Big Idea: Different hotel review websites are popular with different audiences. Additionally, booking commissions vary widely among online travel agencies and distribution partners. A global perspective of activity across all these sources makes it possible to optimize distribution.
How hotels are using this to make more money: By taking steps to increase guest satisfaction – and encouraging reviews across as many channels as possible – hoteliers are strategically growing their business globally.
Providing some sort of special service
to guests who booked their room on a
specific source . Going above and
beyond to be absolutely certain these
guests are delighted.
This proactive approach is helping hoteliers take control of their presence and reach their sales and marketing objectives.
Optimizing your distribution strategy and Hotel can be a powerful growth driver for your company. This service begins with an analysis of your distribution channels and a comprehensive analysis of the entire distribution system. The final result would be the creation of strategy options, or a plan for the optimal distribution strategy.
The payoff: Higher overall visibility, less dependence on any one source, and the opportunity to minimize commission payouts by driving bookings through channel partners that charge lower fees.
Mihran Kalydjian Hospitality Consultng understands how to capitalize on reservations revenue. Hospitality revenue management is progressively evolving and we can help you stay a step ahead of the competition. Our hotel revenue management services focus on maximizing revenue streams, which include channel and rate strategy management, GDS advertising, online merchandising and consortia management.
When these segments are engaged and managed correctly, they become opportunities that can positively and directly impact your RevPAR, ROI, and profitability. Revenue management services include:
Channel and revenue management for optimization
Includes STAR report, market segmentation, distribution channels and social media outlets
Revenue strategy #3: Increasing on-site conversions
The Big idea: 95-97% of visitors leave the average hotel website without buying anything. In most the hotels I have worked with, the #1 reason visitors leave a hotel website is to check what other consumers are saying – often in the form of online reviews.
When a visitor goes to check online reviews elsewhere, it is likely they will then book that hotel through a distribution partner – which of course costs the hotel a commission payment. But it’s also highly likely these visitors will be lost completely: 40% of consumers that leave hotel websites to validate their decision with other reviews actually end up booking a room at another hotel.
This loss in direct bookings could be prevented if there was a way to keep people on the site, and increase their confidence in making that reservation.
The concept behind this is very simple: It is all about giving your customers the ability to share their experience with the people considering booking a room at your property. This creates an honest impression of what your hotel is like, building trust and creating higher guest satisfaction overall. If your team is actively working to exceed expectations, you’ll often find your happy guests will act like salespeople for your hotel.
When you use "Conversion Rate Optimization" to test and improve your web pages and landing pages you can double your sales (possibly even quadruple) when you add up all the performance improvements. Of course it takes time and work but it's well worth the effort.
If you’re truly serious about maximizing your results, continuously test, track and improve the important elements of your web site, landing pages (and your marketing materials).
Conversion Rate Optimization is the continual process of making your Website and landing pages generate better results from your visitor traffic. For example, more leads, opt-ins, and more sales.
Conversion Rate Optimization is also the fastest and easiest strategy to increase your sales without spending more money on increasing your traffic.
With the rapid development of the internet the hotel business becomes more complex. MKH consulting company helps you turn the tide.
The payoff: More direct bookings – saving commission fees from 3rd-party distribution channels. Bookings made directly through your website also enable more control over the customer experience – additional details can be collected to create customized communication and service, leading to higher loyalty and more repeat bookings.
A benchmark rate pricing strategy will be implemented - this is the rate the market will bear. It is essential for the product to be priced properly to retain valued customers and attracting new ones. In a stronger economy and during peak-demand periods, we will ensure that the maximum rate possible under the prevailing market conditions will be attained.
The payoff: Higher ADR, higher overall yield.
Helps to develop, implement and continually validate optimum room revenue strategy
Price sensitivity is measured by calculating the change in demand as a result of a change in price. By understanding the price sensitivity of your business, your published rate plans are now more intelligent because they are based on analytics rather than gut feel or rules of thumb.
Mihran Kalaydjian Consulting arms you with the tools you need to achieve your revenue and profit goals. With powerful algorithms recommending actions and robust visualizations to inform your judgment, you can increase rates, expand occupancy and optimize channel mix. By giving you greater visibility into future demand, you can yield up prices earlier and faster, pull back on promotions and discounts, and reassess channel strategies. This also unlocks a secondary positive affect because some price sensitive shoppers will naturally move their travel to softer dates and boost occupancy during those periods.
“Change is constant, my revenue management philosophy thrives on proactively identifying it and modifying strategies to maximize revenue and beat the competition.”