Someone sent an email to me at Chris@HotelRevenueMan.com asking how to increase revenue at his property.
This was my response: “The most effective thing you can do to increase the revenue (and more importantly the profit) at your property is to price rooms based on demand. That means lowering rates during times of low demand to increase bookings/occupancy. (In America that typically would be Sunday – Thursday, and everyday in the off season.) This will increase revenue, but not necessarily profit because more rooms will be booked, but at lower rates. You also need to increase your rates during times of high demand. (In America this is the weekend, Friday and Saturday, and holidays.) This is especially important with our current shortage of workers. Some properties can only handle 70% occupancy because they aren’t able to turn (clean) the rooms in time for the next guests who are going to check in. How do you keep from booking too many rooms? Raise the rates. If you end up moving few/no rooms, then you can always lower the rates to pick up some last minute bookings.”