We deal in this post a topic in tune with the arrival of summer, the hotel pricing and revenue management. We appreciated the opportunity to engage a professional, Dr. Alberto Ravenna Partners TeamWork, a company that deals in Rimini hotel consultancy, tourism marketing and tourism services in general.
Dr. Ravenna, shows us what consist of activities related to revenue management and hotel pricing, so as to introduce the discussion those unfamiliar with the marketing of tourism and hotel sector?
For revenue management is defined as a management philosophy, then implemented through the yield management, focused on maximizing corporate profit through flexible pricing, availability and offers proposals to clients in order to bring to the highest possible what is called Producer surplus. Revenue management activities can be distinguished in 4 stages:
- Data collection: on all the necessary data for the various customer segments, in order to make sales projections, and then, for example, rooms sold, average selling price, RevPAR, revpac, lead time (the curve of the timing booking for a specific date), a spin-off (average expenditure of a particular segment as extras, apart from the room.
- Data processing: All data collected must be processed and differentiated by segment, time of year, day of week, special events, weather, types of rooms and accommodation, special offers and packages.
- Forecast: Based on data previously collected and processed is provided at both the hotel as a whole, especially in terms of customer segment, with a forecast of expected demand next year on a daily basis.
- Strategic actions based on anticipated demand and thus, consequently, employment expected price strategies are developed, special offers, packages and, in relation to all these, their “fences”
Let us now turn to those who already work in the field: what specific aspects deserve more attention? What are the most innovative methodologies and, in an ideal scenario, operational strategies that you feel you advise?
The things on which we must put more attention to implementing a revenue management strategy are those relating to corporate culture: the revenue management is not only composed of mathematical formulas and statistics, but above all is a philosophy that must involve all the staff ‘s hotel with the goal of maximizing the economic performance business.
At the strategic level certainly the high technology and development of the Internet have greatly helped in the implementation of revenue management particularly at private hotels which, however, to keep up with the best performing international chains, must constantly upgrade their technological equipment to be more informed about customer segments and how they purchase and then, arriving at the hotel an ideal optimization, improve, thanks to special services offered to customers, their perception of value thereby improving the hotel profitability.
There is awareness of modern methods, or are those few players who deserve to 8 report card? In that mode, you can acquire and / or keep their know-how? In addition to training and consulting services provided by companies such as teamwork, there are serials or useful resources in this area?
Excluding the big international hotel chains unfortunately the budget hotels on private Italian is not good, knowledge relating to revenue management are often few, vague and fragmented, although in recent years, is clearly discernible interest in about very good.
The know-how relating to revenue management, as in all matters concerning the operational hotel, can be improved and updated through training courses, both online and off-line and information through newsletters, RSS feeds, blogs . Certainly be taken into high consideration are periodic reports published by Cornell University
Italy is a nation-wide tour that has few equals in the world. However, tour operators nostrani not always seem to expectations. What are the factors of force and limits that are generally attributed? Which countries are used as models? the U.S.A. ?
Certainly one of the strengths of the Bel Paese can include a product unmatched in the world that can, in a territory after all rather small, to meet any demand for tourism. Between the limits of the Italian system is undoubtedly the lack of a tourism policy and promotion at national level that makes us feel united as a nation but as a set of regions separated from each other in that it combines a general lack of managerial Italian receptive system that you can not then compare the same level with the systems of our countries “competitors”.
This is evidenced by the substantial lack, or even in the elite world of European hotel chains, an Italian company. At the system level, and therefore more a political promotion of the country, certainly in Europe is a significant example of Spain and has managed to sustain growth in recent years.
At the country level business certainly have to be taken eg, by level of managerial skills and knowledge and use of technological means, the United States.
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