IDeaS’ “Revenue Optimization Handbook for New Hotels” outlines how hotels and resorts can maximize revenue opportunities and commercial performance before opening and showcases why developing a structured pricing strategy is an essential part of the pre-opening phase.
During the pre-launch development, many new hotels and resorts focus purely on creating an exceptional property that aligns with guests’ wants and needs. But a hotel room — even the one with the strongest design and amenities — is a perishable asset. Price it too high, and it will remain empty. Price it too low, and it won’t reach its commercial potential. If inventory availability and price are not optimized, the result will always be revenue loss.
In order to increase their chances of long-term commercial success, new hospitality businesses need to have a structured and standardized pricing strategy already in place by the time they welcome their very first guest.
This new handbook from IDeaS is designed to help hotel owners and general managers understand how to integrate the development of a pricing strategy in the pre-launch phase in order to maximize revenue opportunities and the commercial performance of the new property.
As Sanjay Nagalia, IDeaS’ chief operating officer and chief technology officer explains, “Hotels that build their foundation on strong revenue management principles like scientific forecasting, pricing, and market analysis in the pre-opening phase will be better equipped to handle the challenges that come early on. They’ll be ready to hit the ground running to generate and maximize revenue.”
An efficient revenue management approach is based on smart data. Its development starts early in the pre-opening phase, with the right market positioning and room-type configuration and has an impact on all of the following steps: staffing decisions, tech investments, as well as on what sales, marketing, and distribution tactics to use.
Mike Chuma, IDeaS’ vice president of marketing, engagement and enablement adds, “Recent years have seen the role of revenue management elevated across hotel organizations. Data and technology have empowered revenue managers with valuable guest, booking, and market insights that have turned them into an expert and trusted source for strategic decision-making. It’s mission critical that new hotels structure their organization so that revenue managers have a seat at the executive table.”
In this guide you’ll find:
- The basics of revenue management and the key benefits of developing a pricing strategy before a property’s grand opening
- The main elements of a comprehensive commercial plan and the three areas hotel decision makers should focus on to get their pricing strategy right
- Five critical reasons to invest in a revenue management system before launch
- The three key arguments hotel decision makers can bring along to their next planning session with upper management to build buy-in for investing early in a revenue management system
- How to choose the approach to revenue management that best meets the individual needs of a business and helps hire the right people to implement it