Τhe present-time Revenue Management

Revenue management should be of concern to hoteliers in the present time.

Revenue Management is the process of dynamically pricing and selling a limited quantity of goods or services, such as the rooms of a hotel or the seats of a flight in order to maximize profit.

The only sure thing for the current year but also for the next ones that will follow, is that the entrepreneurs who are active in the tourism sector, must constantly find new solutions that will contribute to the smooth operation of their hotels, as the pandemic has brought new changes and new data.

This issue should be in the spotlight of entrepreneurs much more than in the past.

Mykonian Revenue Management shares with you 4 tips for efficient Revenue Management in hotels for remarkable results.

• Overbooking Strategy

When you have more than 1 guest with a confirmed booking for the same room and the same date, this is considered overbooking.

For the upcoming years the free cancellation period will play a big role in the choice of accommodation, it is essential to have a management plan for the overbooking from the beginning.

•  Use of RMS tools (Revenue Management Software)

Having the latest RMS helps the hotelier to make the right decisions regarding the pricing choice for his rooms.  Using RMS tools saves cost and time.

• Dynamic pricing

The advantages of dynamic pricing are many and give immediate results. Dynamic pricing in an accommodation is what makes the hoteliers more profitable and competitive. For this reason, hoteliers need to have the flexibility to decide on the price of their accommodation.

• Cross selling and up selling

Revenue management is also used to optimize other products or services. The customer buying the next type of room might give an extra income for the hotelier business and it is up to him to take advantage of it.