Overview

Hotels are being pummeled by the economy, and the hospitality industry is suffering in every corner of the globe - what else is new? In the current climate, most hotel experts are expecting RevPar (revenue per available room) to drop by as much as 11%, perhaps even more. And with occupancy rates already at all-time lows, this isn't good news for the hotel business. In such a climate, many hoteliers will compete on rate, but this only creates a downward spiral of price competitiveness, and more pain for the long-term growth and sustainability of hotels' revenues once the economy bounces back. So how can hotels compete in this weak economy, looking beyond discounts? Is it possible to flourish, even during such a travel slowdown?

An effective hotel revenue management system is the key driver behind the hospitality industry's ability to survive the economic crisis, retain and attract customers, and increase RevPAR. And the importance of revenue management has never been more important than now. Since the market is expected to decline overall, the average RevPAR and other hotel metrics will expectedly experience a down trend as well. With a good system in place though, a hotel revenue manager can look past this into the real potential of his hotel.

Times like these require greater efficiencies in everything from improving customer relationships and boosting loyalty initiatives, to improving direct marketing programs and not cutting back on service. None of these, however, can be sustained without optimizing cost centers and profits. And on that basis, effective revenue management becomes an operational imperative, not an option. It's time for hoteliers to think beyond discounts and so I have created a list of tips on how hotels can increase their RevPar, without sacrificing margins or brand value:

DOING WELL?

This is a very difficult question to answer to even established Fortune 500 companies. Your growths, the profits you make has a relation with the inputs you feed. Identifying these factors that contribute to Quality and cost is the key to running a business. YieldMIX helps you in identifying whether you are still working in the dark or have clear factor to profit relationship established.

Revenue management is not very difficult to understand or to put into action. Considering all the advantages it can provide, there is no reason why any hotels would not use this system to increase their revenue no matter how small they are. A revenue manager will help your company to bring in more business during the slow periods, which can greatly increase your overall profits. It will also allow you to take full advantage of the high demand periods.

Revenue Analysis

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