2 nd session hotel revenue management by dino leonandri

1. 2nd Session of
Hotel Revenue
Management
By : Dino Leonandri
www.youtube.com/channel/UCHWtDItwtFziERwD0qIrP4Q

2. As soon as the last room is
sold, someone calls for a
longer stay Contents
01
Or, as soon as the last
room is sold, someone
calls, willing to pay a higher
price, or from a higher-
priced segment.
02
No matter what public rate
you set or price you charge,
it never exactly meets the
price expectation of the
guest.
03
When you are completely
sold out, someone cancels
last minute or does a “no
show.”
04
What are the most common problems a hotel faces when it comes to managing booking?

3. The Revenue
Management
Actions and Process

4. Revenue Management Levers
Marketing
Marketing works a little differently than
price or yield. That’s because
marketing doesn’t run on the same
clock as the other two- you can’t
simply “turn on” marketing in the
morning and fix today's problem. Yet
marketing can be an extremely
effective tool. Imagine that you
forecast the next month will be lower
than usual. Once identifying the cause
of the problem, you can request more
marketing actions in that area or
channel.
Yield
Yielding is often misunderstood as raising or lowering the public
rates, but historically, it is about turning away less attractive guests.
To do this, we open or restrict the rates (segments), room types or
channels. Setting a minimum length of stay is one way to do it.
Adding or removing inventory for a channel is another option.
Price
Raising or lowering the price is the most basic task of a
revenue manager. By raising the price we increase revenue
but potentially lower the number of bookings. If demand is
high this is often the right strategy as there are enough
potential guests willing to pay the high rates.

5. Types of Rate Codes used in hotels
Rack Rate:
the Standard rate or Published tariff
defined by the hotel management for a
particular room category/type.
Corporate or Commercial
Rate: These are rates
offered to companies that
provide frequent business
for the hotel
Group Rate: These are rates which
are offered to groups, meetings and
conventions using the hotel for their
functions.
Promotional Rate Codes: These rates are
generally offered during low occupancy
periods to any guest to promote occupancy.
Early Bird Rates, Stay for 3 and pay for 1 etc.
Incentive Rate Code: The Rate offered
to individuals who belong to an
association or holders of special
membership cards or Credit cards
Best Available Rates ( BAR ): These rate
codes are the lowest discounted rate available
for a day which can be offered to the guest by
the Reservation or Front desk staff
ADHOC Rate Code: These are normally non-
standard rates which are offered as special one-time
rates for first time corporate's.

6. Sample Dynamic BAR Rate
BAR Level Open / Close when Occupancy Between
BAR -01 0% TO 25 %
BAR -02 26 % TO 35 %
BAR - 03 36% TO 50%
BAR - 04 51% TO 75%
BAR - 05 76% TO 100%

7. Thank you