The rapid stride at which new hotels are coming up is making many experts in the industry think whether these hotels, are amply prepared for the challenges that might surface in this process and most importantly are they ready with their revenue management strategy before they actually get live into business.
For hoteliers, pricing can be a dizzying task, especially how the cost of the same room at the same time can vary dramatically from one date to the next. Especially for the dates that have some important events scheduled. Events and holidays are a high business period for hotels. However, there is definitely a technique to the seeming craziness.
Pricing is certainly critical to the success of all hotels and a well-designed pricing strategy can do wonders by giving a strong push to the hotel revenues. What is important is how you derive at the appropriate pricing and what kind of strategy you choose. Hence, revenue management is the new way of doing business in the hospitality industry.
The degree of rate parity for hotels in the Middle East between brand websites and the OTAs by location are in the January 2017 report. Riyadh maintained maximum parity in the 3-star hotel category. In the 4-star hotel category, Cairo has the highest number of hotels preferring their own brand sites to OTAs.
In present times, happy consumers define the success of any business. The hospitality industry is all about serving people right and delivering the best-in-class experience to their patrons. What the guest feels and says is very important, and responding to their concerns is a critical aspect to the growth of hotel business.
Revenue managers spend a considerable time in coming up with a forecasting analysis. But it is also important for them to understand when a forecast needs to be altered and why. It is imperative to understand why demand forecasting is important and also why it is important to do it the right way.