Revenue maximisation is a central, year-round responsibility for all revenue or property managers.
But it’s especially tough during periods of low demand, when you need to come up with creative solutions to attract guests. At these times more than most, preparation is all-important.
By analysing your market and its fluctuations, you can anticipate upcoming trends and adjust your strategy accordingly, perhaps using a benchmarking tool such as STR.
The law of supply and demand applies wherever you are, but specific situations change. Business properties in the northern hemisphere experience lower demand during the long summer break in late July and throughout August, while holiday properties in the southern hemisphere are less busy during the same period.
This is a fact of life for hoteliers but with the right strategies, you can make low season more lucrative than ever before. To do so, it’s important to remember: don’t be a follower, be a game-changer.
Here are some detailed tips; some familiar, others perhaps less so.
1. Get a handle on your data
As with many aspects of the hotel industry, collecting good market data is key.
Good data and strong analysis will provide actionable insights that boost revenues at your property, no matter what time of year it is.
Some of the key data points to look at include:
- Booking patterns – which distribution channels your guests use, including OTAs and direct
- Any upcoming events in your neighbourhood
- Rate fluctuations among competitors – to inform your rate strategy without necessarily following the same pattern
- Occupancy rates – to get an idea of how much demand there is
This applies all year round but by structuring your data queries to focus on key periods that need a boost and using the best revenue management tools, you can act with confidence.
Data analysis can be hugely time-consuming unless approached strategically.
2. Make better strategic decisions based on this data
Being aware of the competition is essential, but don’t be fooled into following their lead. Think of the prisoner’s dilemma from game theory and consider the mutual benefits of keeping rates high.
Slashing rates could encourage your compset to do the same and result in significant losses at some properties. Strive to be the game changer in your market, rather than believing that your compset is on the right path to maximising revenue – and remember: it’s also low season for them.
Rather than the risky gambit of reducing rates to boost occupancy, look at period-specific factors such as these to inform your pricing strategy:
