Revenue Management

Total Revenue Management …More than Yield Management.

Revenue Management evolved from Yield Management to Total Revenue Management

Total Revenue management now includes F&B, Spa, Sport facilities, Banquet etc. The transition from Yield Management and Room Revenue Management to Total Revenue Management involves the shift from Short Term to Long Term strategic view.

Total Revenue Management is the emerging discipline that is not limited to Yield Management (increasing revenues only by the efficient handling of the inventory of the Hotel) and goes far more than "Selling the Right Room to the Right Client at the Right Moment at the Right Price”. Total Revenue Management analyzes data and makes strategic plans to increase Revenues in all Revenue generated areas of a hotel, such as F&B, Spa, Sport center etc.

With Total Revenue Management, Hotels will increase:

Rooms’ Occupancy %, ADR and RevPar,
F&B Outlets’ Average Check spending, RevPASH (Revenue per Available Seat Hour), handle effectively Hotels’ meeting spaces, etc.
SPA’s Occupancy %, ATR (Average Treatment Rate), RevPATH (Revenue per Available Treatment Hour) etc.

With Total Revenue Management Hoteliers are able to forecast effectively the Revenues for all Departments per Market Segment that will help the Financial Department of the hotel to forecast, amenities expenses, payroll expenses, food cost and other variable operating expenses crucial for the GOP (Gross Operating Profit).

With the effective management of operating expenses, all the above will lead to the increase of Hotel profit.

Our Goal

To provide knowledge on Market, Competition, Guests, stay patterns etc.
To provide knowledge on F&B metrics
To set and apply effective Competitive Set and Market Segmentation
To increase Revenues especially in the most profitable Market Segments
To use advanced Digital Marketing techniques to drive business to Hotel’s direct booking channels
To apply F&B techniques aiming to increase F&B Outlets’ and Banquet Revenues
To set clear Revenue Goals to keep the Management team in line (incl. Front Office, Reservations Dept. Sales)
To set and apply effective Pricing (BAR Rates, Non Refundable Rates, Packages, Deposit/Cancellation Policies, Upselling Rates)
To set effective contracted rates for the Travel Agents and Wholesalers
To analyze Room Type productivity
To provide knowledge on Pick up, Pace, wash, lead time both for Transient guests and Groups in order to avoid displacement of Transient Business that will lead to diluted Revenues
To forecast Room Revenues per Market Segment, F&B Revenues, and Revenues from other Revenue centers that will help the Hotel forecast its variable expenses, crucial for the GOP(Gross Operating Profit) such us payroll, food cost, amenities etc.

Our Job

To make assessment of the Hotel (Room Types, Rates, Reporting System, Historical Data etc) – one-off
To review reservations and pick-up per market segment so to make necessary rate adjustments – Daily
To review F&B statistics - Monthly
To apply pricing strategy to ensure maximization of Revenues – Daily
To ensure parity is maintained in all channels - Daily
To set-up Hotel’s Channel Manager in terms of connecting channels, Room Types, Rates, Special Promo Rates etc. – AdHoc
To handle Hotel’s Channel Manager (open/close Room Types, change Rates, apply LOS (Length of stay Restrictions, etc.) – Daily
In the absence of Channel Manager to set-up and handle OTAs extranets, in terms of content, photos, rates, promos of special packages, Room Types etc - Daily
To create rotating Revenue forecast for all departments – Monthly for the upcoming 3 months
To organize Revenue Meetings for the Management team to present Hotel’s status, actions and strategic - Weekly
To create the Budget for all Revenue Centers – Annual
To set the most beneficial contracted Rates – Annual

Why Us for Total Revenue Management

We know the Market
Our staff is constantly trained on advanced Revenue management Techniques
We are 24h available for the Hotel, including staffs’ vacations and high demand periods
Payroll saving - a well-trained Total Revenue Management costs more for the Hotel

INFORMATION / FEEL FREE TO ASK US ABOUT THE SERVICE