Working within hospitality you come across industry related terms and phrases all of the time. From
|Nic Owen - Distribution Co-ordinator at Guestline|
Rate Optimisation / Management is another phrase used frequently in the hospitality industry, but what exactly does it mean and why is it so important?
A hotel needs to understand their place in the market and their target market to put an effective rate structure in place. Guestline offer Rate Management and On-line Optimisation courses to show hotels the best way to do this. Courses can be booked here
Take into account the time of year. Most hotels are busier during Valentine’s Day, the lead up to Christmas, school holidays and other such seasonal dates for example – use this to increase your rates as the demand increases. Make sure you’re aware of everything that’s going on in the local area so you can plan for any potential peaks in bookings.
Another key area to focus on with rate management is corporate versus leisure business. If your hotel is popular with corporate guests, set rates for business travellers between Monday and Friday to drive more revenue during these times or perhaps you are more of a leisure destination where you might increase your rates during the weekends when occupancy is higher.
Keep checking what your competitors are charging though to keep ahead of the game with competitor analysis.
Work on driving the average spend higher. Do you include breakfast? Do you offer up sells and promotions such as flowers, chocolate, discounted second nights?
Once everything has been considered and a comprehensive rate plan has been produced, hoteliers will benefit from an increased average spend, increased revenue and higher occupancy.
Hoteliers must also remember to close out availability to other channels to ensure they're not offering inventory when they're going to sell out anyway- cut OTA commission costs and get the business direct. Guestline WebSuite is a great way of driving more direct bookings!
Contact Guestline today to arrange a rate management consultation.