Like airlines, software companies, and many others, hotels adjust their prices upwards in order to take advantage of periods of high demand and lower them to attract customers when business is slow. Doing this intelligently – that is, determining the optimum room price from day to day and season to season – is called revenue management.
Instructor: Manish GuptaLanguage: English
Empty rooms cost money. It’s often better to fill them up at a reduced rate (even at below cost) to keep the hotel running, generate more online reviews, and ensure the appearance of success which by itself attracts more guests.
How low is too, low, however? At what point do bargain rates begin to affect the reputation and character of your hotel?
Conversely, can charging sky-high rates during periods of peak demand alienate regular guests or have other unforeseen consequences? We turn to the art and science of revenue management to answer these questions in a rational way.
When you have lots of potential guests, rooms are scarce; when you have plenty of rooms available, guests are scarce. You can’t create either out of thin air when there’s a shortfall.
Technically, hotel reservations can be described as a fixed, time-limited resource. These occur in some other industries as well, so what you learn in this course may one day be useful in some context other than hospitality.
Whereas many pricing techniques rely primarily on psychology, the basis of revenue management is typically a thorough understanding of market conditions and customer needs. To this end, revenue management is usually based on extensive research, competitor analysis, and the segmentation and profiling of potential customers.
Unlike most of our courses, this one has a theoretical rather than practical emphasis. Once you’ve learned the relevant principles in the abstract, you should have no problem applying them in your particular area of responsibility, taking company policies and local conditions into account.
In four hours of lectures and exercises, you will be exposed to:
Some hospitality properties are more seasonal than others, but all have predictable ebbs and flows in demand for their rooms. Especially when customers can search online for the best rates, it’s essential that your hotel embraces dynamic or at least adjustable pricing