Prospective hotel guests now have a huge range of hotels to choose from in what is a congested and competitive market place. Once these guests have chosen to stay at your hotel they have a choice of several different booking channels whether this be through an online travel agent (OTA), third party intermediary (TPI), traditional travel agent, tour operator, your own hotel website or directly by telephone.
In this complex and dynamic environment it is of primary importance that you ensure your bookings are coming through the lowest cost channel and at the highest achievable rate. In an example of a hotel with 80 bedrooms operating at 75% occupancy, an increase in the Average Daily Rate (ADR) achieved of €2/£2 will increase annual profitability by over €40,000/£40,000.
Sophisticated revenue management systems have been devised to assist hotel yield management teams to decide upon rate strategy but these are no replacement for the instinct and experience of a top class revenue manager.
PREM Group offers a unique service to independent hotels by providing our hotel revenue management service to independent hotels. A member of our revenue management team will be assigned to your property and will maintain a constant watch on the frequency and origin of bookings to monitor your hotel’s progress towards monthly targets. On a weekly basis our revenue management team will report back to you with suggested rate changes and progress reports.
As part of our service we will provide you with a license to use our customised Rate Grid (our “selling rate” management tool) and R/X Report (our yield management and forecasting tool). Through the effective use of these tools our revenue management team will ensure that your property is selling at the optimal rate to maximise your hotel’s revenue.
In addition, our revenue management team can assist with your relationships with key TPI’s and OTA’s to ensure that your selling strategy is implemented by them effectively.