Revenue management principles are no new to the hospitality industry however over the past years with digitalization, Revenue Management systems, tools and practices have advanced. This advancement is not by choice but a necessity keeping in mind the consumer behavior and globalization over the years. Use of social media, technology and digital marketing have kept consumers informed and educated with new and innovating travelling trends. OARS Revenue Management Consultancy is one such company which focuses on the principles of revenue management, gathers knowledge with tools and technology and helps make marketing miracles to overall generate revenue profits for the organization. We are a team of professionals around the world bringing experts and experience together with a single aim to focus on providing solutions on optimizing revenue growth for Hotels & Resorts. Our multitalented team has a background of the Hospitality Industry and have worked Internationally dealing with challenging situations with one single aim of delivering targets. We apply revenue management techniques to your needs, recommend tools necessary with changing trends, forecast pace based on demand, assist with simple templates required for daily operations, strategize plans and assist tools to optimize and drive your business. OARS as the names suggests focus on finding occupancy, average room rate, revenue solutions for hotels and restaurants at any given stage may it be preopening, reopening, rebranding or an established hotel. To set revenue management strategies, it is very important to understand two things: The Product & The Customers. Hotel Products are referred to as rooms, restaurant, spa, kids club, banquets or any other revenue generating item. Costumers are the travelers either a group or person who use those products. We ensure that the right products are reached to the right consumers at the right time by using the right channel to optimize the right price by using the right tools. Our Vision is to bring the best of professional experience and insight, applying the right technique in any challenging scenario, driving best results. Revenue Management is a technique that involves certain skills and knowledge, our company professionals have those skills and knowledge pool to assist your establishment grow faster. With the increase in distribution channels, it can sometimes be hard to monitor and forecast, optimize the various sources, which we with our professional team know it right and faster. Our principles and practices for your growth is key. We rely on authentic methods focus on consulting the challenges which ultimately delivers desired goals. Fair Market Share understanding is utmost important to us and hotels performance is measured by looking at its market share, higher the share better the performance. To achieve fair share or more it is required to have standards and basics in place. Applying basic practices such as identifying the unique selling prepositions, creating a S.W.O.T (strength, weakness, opportunity, threat) positioning the product, training the reservation team, standardizing policies and sales speech creates a firm ground work which leads to strong foundation. RevPAR (revenue per available room) or RGI (revenue generating index), Trev PAR (Total revenue per available room) can either be increased by volume which in revenue management terminology refers to Occupancy, MPI, (market penetration index) or by increased is average room rate, ARI (average rate index). It is crucial to understand the pace or booking curve to understand which strategy to apply, Volume or Rate. Pace refers to reservation pace or pick up pace, the number of room nights or bookings made during a period or date. A good pick up for a date means high demand and a less pick up for a date can mean low demand. It could also be that the booking window for that date may not have kicked in. When revenue management practices such as evaluating pace, understanding booking window are put together, better forecasts are generated, assisting further to apply either a volume strategy or rate strategy for a hotel. Since OARS has this expertise and several years of experience it can demonstrate an organization put the right strategy reading the pace report resulting in revenue growth. Remember! An empty room is lost revenue. Rooms are perishable items as once lost cannot be replaced. RevPAR ranking number 1 is every hotel’s aim and we can assist you take the right steps. Revenue optimization with favorable outcome leads to business growth. OARS provide solutions and coaches the reservation, sales team on how to practice these techniques. Data plays an important role to aid the techniques, recording data, analyzing data, tools to use and creating standard operation procedures (SOP) are some of the base of optimization. Either one can optimize the product, channel, geo market or market segment, data plays a major role. Applying rate restrictions, rate fence, length of stay restrictions, room type restrictions are all carefully measured so to generate desired results. Managing your hotels revenue is prime, you should be able to dictate which business is useful for you and which business to turn away. Understanding the need of geo markets, which room product or food and beverage product is preferred to which market is crucial for sales team, so they can promote the USP of the product to the right customer. With digitalization promoting products is getting easier but not to forget the competitors are also eyeing what you are doing so staying ahead of the game is better than catching up. OARS collect the principles of optimization which helps drive revenue. Pricing is most influential and sensitive to the customers. Pricing products, creating various rate plans should be well thought. This exercise includes many factors such as size, location, view, facilities and amenities, inventory, accessibility and most important demand. Most hotels have different types of rooms and each room type is proceed differently based on the factors mentioned above. Room to room supplements is also prime when pricing rooms. Once must evaluate competitor’s product when pricing their product to ensure outpricing from market or underpricing. Creating various price range for demand periods can help strategies. An organization must understand its customer and their behavior for making purchasing decisions. Customer centric price is most beneficial approach for the organization. Adding special amenities may bring in value however will affect the price of the product too as the costs will be affecting the price. Understanding buying behavior is preferred keeping in mind the price value perception. A high value product if sold at a lower price is not beneficial for the organization but make a customer happy with the deal but a low value product if sold at a high price may not bring satisfaction to the customer but to the organization. In both situation either one is at loss hence finding the correct balance or price and value is crucial for correct pricing decisions. Service plays a major role in creating high value of a product. A satisfied customer is free marketing. A profitable organization with satisfied employee delivering services leads to satisfied guests. Dynamic pricing which was once introduced in airlines has been quickly adapted by the hospitality industry. It is the process of maximizing revenue by selling the same products at different prices to different buyers and is regulated by demand curve. Destinations which have high demand during weekend practice dynamic pricing for weekend and weekdays. Some establishments have introduced hourly pricing, mostly found in airports where they offer hourly rates. Hourly rates are practicing dynamic pricing too which again is influenced by demand. Special events such as popular concerts or trade shows influence pricing. OARS know how to manage demand, understand the need of correct pricing and how influential it is to a buyer. Forecasting is estimating and in hospitality industry forecasting demand is estimating the pick up, number of rooms for a date. Forecast can be created for a day or for month or year and it is important for our stake holders to understand the growth of the company, it is also necessary for planning and preparing in various departments. Planning staff, planning inventory, planning ingredients all assist to offer goods service. Forecast requires tactics, it also need past data and how to calculate the same based on trends and booking curves. Having a good market intelligence also assists to better forecasting, as knowing special events in the destination or knowing that your competitors have high occupancy early may impact your forecast. Collecting data such as waitlist, turnaways, shoppers, cancellations assist in better forecasting. There are various revenue management tools that can be used to make the process easier and OARS can assist make use of these tools and train the team to handle the same. Correct group forecast is valuable to any hotel due to the risk of displacement. Displacement analysis is done to ensure that when you are replacing one customer over another or one business segment over another if it is worth versus another. While doing group displacement, ancillary revenue plays a major role in making decision. OARS Revenue Management Consultancy has the tools to offer and the expertise and techniques to train and provide information for best decision making while doing displacement analysis. Consulting forecasting problems is what OARS can coach its clients and help them resolves incorrect forecasting by understanding constrained demand and unconstrained demand affects forecast and pricing. Strategic Management is extremely important for successful revenue management in hotel industry. Developing, implementing and evaluating strategies helps hotels achieve their objectives. Budgeting is a process of strategic planning. Several hotel revenue management companies do not emphasis on the techniques of budgeting. OARS have a deep level of understanding on this subject, creating budgets on various levels such market segments, channels, room types, source, origins can be beneficial to build strategies. For pre-opening hotels having past trend or data is challenging hence having a good market insight is a prime requirement. Market intelligence can be broken down further into demographics, trends, market supply and demand, airline, competition, channels and distribution, regulations, economic impact, to have such intelligence revenue management expertise can be useful so to guide on how this data can be adapted best specially for revenue management and building a budget relevant to the establishment and destination. Sales Strategy meeting is one of the example of implementing strategic management tool which will assist drive sales, optimize digital channels to drive result. A role of revenue management consultancy companies is to aid with the right technique of sales strategy meetings and optimizing digital channels by providing with tools, how to make best use of the available data, analyze challenges and work towards increased profits. Advanced travel market technology, use of devices can be complex with data available to understand consumer behavior. Digital Marketing, use of social media can be beneficial. OARS tackles ways to best use this media in revenue management practices to bring positive results. New innovations, revenue fundamentals, building solid foundations can expand areas of growth. Revenue Management is incomplete without a strong back of the reservation department. A good reservation team and structure with proper training can be a key factor to driving business, increasing conversions and recording data. Everybody sells, and everybody optimizes revenue in a reservation department. A strong revenue team can build success revenue strategies and strong revenue strategies can deliver results with help of trained reservation team. OARS deliver revenue management growth via training reservation team the importance and executing the rights strategies. The team should work hand in hand with the sales team and possess strong communication skills. Follow standardized processes and keen learners when combined with rehearsed selling techniques can favour revenue generation. The benefit of working with hotel revenue management consulting companies saves hotels time and money. As the experts have quick decision-making ability, tried and tested strategies, experience to work under challenging situation and ready to use tools. OARS Revenue Management Consultancy is one such company that can deliver strong results by putting in place the right revenue management systems. Find ways with OARS Revenue management to maximize your revenue profit in the hospitality world. Our Services are vast and mainly cover various areas in Revenue Management. Each package can be tailormade to adapt to your needs. We row you grow.
Submitted By: OARSolutionSubmitted On: May 24, 2023Visit Website