Categories
free access

Revenue management basics for accommodation providers

Revenue Management Basics for Small accommodation providers

The basic steps small accommodation providers need to take if they want to manage their revenue successfully.

All small accommodation owners want to book their property to capacity.

Why? If a room is sitting empty for the night, you quickly lose revenue and you miss an opportunity to continue to grow your business.

The good news is, there are ways to avoid that by putting proper revenue management strategies in place.

These are the basics that you need to know in order to manage the revenue effectively.

 

Develop a rate strategy

Decide how you’re going to price the rooms at your bed and breakfast or small hotel.

You can do this based on its features. For example, a room with a premier view, such as an oceanfront room, will likely cost more than one with a view of the garden. A room with additional amenities, like a fireplace or a jet tub, will be priced higher than one without those same features.

 

Develop a seasonal pricing strategy

You should also have different prices in place during the peak season and the low season.

Demand is high during the peak season, so you can increase the prices of your rooms in order to generate more income that will help you supplement your business when the travel season slows down for the year.

During the low season, create discounts and packages that might convince guests to book a room when they wouldn’t have considered it otherwise.

 

Create innovative up-selling opportunities

Extras are a great way to boost incremental revenue while enhancing your guests’ experience.

Create packages that offer extras, such as champagne and strawberries or wine and cheese plates. Offer rental equipment at your location, such as DSLR cameras or bicycles.

…But can you measure your success?

Having the right kinds of metrics at your fingertips is absolutely essential if you want to track and measure your return on investment.

Small hotel owners are busy enough without having to work with Excel spreadsheets just to generate a report. Do you have the data you need to make those tough decisions?

 

PLEASE SHARE THIS:

By Oliver Mizen

Oliver is web editor, social media poster, search engine optimiser.

Latest Issue of Luxury BnB Magazine

For owners & managers of B&bs, Inns, Guest Houses, Boutique Hotels & Holiday Lets.

Featuring in this next issue...

  • HOSTING A COSY CHRISTMAS. Discover what guests want from a Christmas break and find your holiday hosting inspiration
  • Should you be an ADULTS ONLY or FAMILY FRIENDLY establishment? Discover handy tips and advice for running an adults only venue or hosting children.
  • Also featuring CHRISTMAS AT THE COW in our upcoming innkeeper feature!
  • Need a hand with SEO? Check out our A-Z of LOCKDOWN and HOTEL SEO articles! And if that isn't enough, we've put together a handy guide for using QR CODES!
  • Ask Tina – questions & answers from the Tiny Troubleshooter
Buy Now DIGITAL ISSUE Read online