5 revenue management tips at the beginning of the year

The beginning of a new year is always time to draw up budget. The Revenue Manager has a key role inside the Hotel: it’s him to have the responsibility to check on the numbers. This is something that doesn’t catch him unprepared because it is, as well, his daily, weekly and monthly duty.

Especially in January is time to sum up the outcome. And so, this is the first point of our to do-list:

1. Check on the Budget

Did the hotel reach the Budget? How is the result compared to the previous year? How much room/nights have been sold? Which RevPar has been achieved? Which is the final Revenue for each division (ROOMS; F&B; SPA; MICE)? Which are the segments that have made the greatest profit? Have these aspects been forecasted correctly in advance? A great summary of the just ended year is one of the main activities of a Revenue Manager at the very beginning of the new one, as he probably needs to show the reports and the results to the owners and /or investors. Here are the most important revenue management key figures. 

2. Set your new goals

The beginning of the year is a great time to set yourself targets and goals. A new Budget must be drafted, and this means create a good Forecast. Forecasting is the most important activity of a Revenue Manager, and the real secret of a Hotel’s success. It’s a crucial moment that will affect the entire sales year. Looking at the historical data (3-5 years in the past) the Revenue Manager will set the rooms rates, as well as, the goals to reach during the next months, quarter of year, full year ahead. Thanks to the Forecast the Hotel will be also able to allocate its human and material resources. You can find more information about business intelligence here.

3. Redefine a weekly schedule to stick to

Every Revenue Manager has his weekly routine. It’s very important to review it to allow additional duties the role may request. Examples of this routine are, for sure, rates changes, pick-up analysis, competitors’ rates check. Through this strict schedule the possibility of errors will be reduce as much as it’s possible, despite the amount of data a Revenue Manager look at, regularly.

4. Negotiate new contracts

The beginning of the year is also the moment when new contracts are signed with the Hotel’s partners: travels agencies and tour operators. The negotiation in this phase is crucial because, the rates define and fixed, will be valid for all the period of validity of the contract. The Revenue Manager has to work to get the best rate possible and, if possible, some flexibility.

5. Keep yourself updated

New theories, tools, and technology are available each year in the travel and tourism field. Take some time in January to read about what is new in the industry and what is relevant for you to learn to improve in Revenue Management and create a plan to upskill yourself. Never stop studying!

Learn all about the latest news in one of our workshops. 

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