Hotel Revenue Management 101 Example
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- เผยแพร่เมื่อ 17 ก.พ. 2017
- Is it better to sell every room at a cheap rate, or raise rates and leave some rooms empty? ADR (Average Daily Rate) vs. Occupancy.
More revenue management videos and info at my updated site: hotelrevenueman.com/.
Don't miss the opportunity to get more additional revenue in food & beverage, parking, wellness and many more services with higher occupancy.
Very good presentation. Now I know why many motels and hotels be half empty. They are making more money like that. Good to know
Great information. Cleared up many misconceptions about the profitability of the hospitality industry.
Thank you for the video. As a Tourism management student, these kind of videos helping me a lot.
Thanks, Emre!
Excellent, easy to understand and watch. Great job thank you!
However the fact is sometime when we put higher rate (10% mark up probably) the pick up is almost shut down. (Bali Hotel)
It helped me in doing my college assignment.Thanks allot.
Perfect intro to the subject for me. Thank you so much. Liked and subbed.
Thanks, Cricri!
Thank you from across the globe!
You're welcome!
Perfectly elaborated this revenue management strategy.
Thanks, Dhrumil!
What a great content! Very easy to understand. 👍🏼
Thanks, Kate!
Thank you so much! Really helped me out and cleared my mind!!
Great! Thanks for taking the time to comment.
Insightfull
This is generally how it works. However, in some certain situations as an operator, you are obliged to go with the first scenario, at the end of the day it is much better to work a lot & get less profit, at least you have with what to cover your expenses, rather to experience losses.
Some bad decisions let the hotel breath till passing the moments of crisis
Revenue management is evolving; the same parameters doesn’t apply all the time in all situations
Excellent illustration!
Thank you for your kind words and encouragement!
Just what I have been looking for.
Great! Thanks for the comment, Bob.
Awesome tips!
Beautiful explanation
Thanks!
Great explanation 👍
Thanks!
Excellent sir, thank you.
Thanks, Joe!
Thank you its been very helpful
Thank you!
This is awesome!
Thanks!
this is clear to see, busy hotel doesnt mean to be profitable one, more guests staying in more rooms would make more depreciation in facilities and amenities, even though i think there actually is benefit, that is for marketing, many guests come there will be more worth of mouth which is good for hotel reputation and reviews
This was extremely helpful. Low occupancy makes you feel like your doing something wrong. I'm so worried to increase my rates and in turn decrease my occupancy.
Reach out to me and I'll give you an hour of my time for free to see if there are some opportunities at your property that you might be passing up. Chris@HotelRevenueMan.com (this is my youtube channel).
this is great! However, this only helps if you have played around with price per room to see what people are willing to pay.
Jigar, you are correct. Many hoteliers are not changing their rates to see what guests are willing to pay, and that's a BIG mistake. When a hotel sells out the market is saying "Those rooms are a great deal. I'll take them all!" This means people would have been willing to pay more. How much more? The only way to know is to run continual experiments and to have a system of recording those experiments so that you can use that information to make future decisions. This is what I teach hoteliers how to do. Thanks for the comment!
im sales assitant in jinling this helps me alot for writing a shittin report
How would I determine if revenue growth is attributed to rate increase or occupancy increase? - Thank you
Nice. But its depand on meal plan and typ3 of property also. If a beach hotel where they don't have many restaurants nearby and guest booked on B&B, the working will change.
Hi!! Any plans of speaking of USALI? xoxo
very helpful video. but I have a question, if we make all the weeks as same as friday schedule is it going to be same. i mean what if we do $110 for all the weekdays and weekends. Does our business going to be the same every day?
Generally your weekdays would be basically empty, then you would get some bookings on the weekend. This is because generally weekdays have less demand, so you have to lower rates to get bookings. Here's a video I made that shows what happened at a real hotel who had all days priced the same. th-cam.com/video/eqSjP_Uv5qs/w-d-xo.html
@@hotelrevenueman5708 thank you so much!!!
What about the extra income from inhouse guests from FnB and other sources?
That could be factored in to an example. For this video it's just focusing on the manipulation of room rates. Thanks for commenting!
Great videos, Chris! Tried emailing you but the Chris-email came back not found. I resend though to the Ask-email.
Thanks for reaching out. If your email hasn't gotten through yet, try Chris@HotelRevenueMan.com
Yes but how to write at 8 level ?
I need you in my team...now
Send me an email and I'll be happy to correspond with you. You can find contact info at www.HotelRevenueMan.com. Thanks for the comment!
how to get the room revenue first to get the ADR?
This will be in the hotel's computer system (PMS - Property Management System). Look for the revenue, then look for the number of room nights sold for the same time period. Divide the revenue by the number of room night to get the ADR.
😍😍😍
Do someone knows a good book to learn this?
You need Hospitality Academy for this specific subject. You do not learn that in 8 grade anyways.
So what is the insight? I charge 110 dollars everyday?
Dean, I'll show you a few simple principles that will increase your revenue significantly. Email me at Chris@HotelRevenueMan.com and we'll schedule a free 1 hour call. I'll show you how to lower your rates on days of low demand to increase bookings, and how to raise your rates during times of high demand to increase profit. Thanks for the comment!
How do I make the jump from front desk to revenue management.
Check with your manager and ask if you can start helping with some tasks related to OTAs. This might be reconciling weekly Expedia bills, to double checking that inventory and rates are right on Booking.com. Take the initiative to take some less desirable tasks off someone else's plate, then when someone is needed to do some substantial revenue management tasks, you'll be the go-to employee. Good luck! You can also feel free to tell them about this youtube channel. Let them know that there might be some free information that could be a benefit to the hotel.
You first need to learn about the holistic education. There not a "jump" term in business academic educated person, there is not a doubt that you are an idiot, to be in the front desk you need to have a costumer service and communication skills while you are showing that you put questions that are not related with this field. So make the jump at motherfuking hell and comment there with illiterates at your level . Okay Steve Retard?
Wouldn't operating cost increase as occupancy also increases? Because now you are using more wages to clean rooms, guests might eat more breakfast, and more utilities are being used.....
Fixed costs wouldn't change but variable costs would certainly increase as occupancy increases
You're exactly correct.
Great
That is good for beginners. But in real life you should consider RevPar and not heads in beds
What is RevPar?
@@ninokharebava9821 Nino, check my videos. I made a video explaining what RevPAR is and how to calculate and use it.
Wt is market cap ?
Go and make research for your self instead to intoxicate us with stupid questions.
You are not getting in the cost of your empty room
George Losekann right as the profit was calculated on the occupied rooms basic. But empty rooms get theire cost too. This makes confusion
@@goforce4057 You and George are right. My most popular video deals with how much it costs to put someone in a room and at the 2:20 mark I reference the fact that the most expensive cost to hotels is rooms that set empty. But, there is a point where you are getting so little for a room that it's better to have a room sit empty. You can see the video here: th-cam.com/video/EjyLcwUyNtE/w-d-xo.html. Let me know what you think. Thanks for your comments!
But what about our cows?
HAHAHA!
PlazaYou should come to Ecuador at Wyndham Sail Hotel in Manta. These guys don't know anything about hotel revenue managment they are in the RED everyday. Pretty much broke because nobody here knows anything about the hotel business.
I have multiple international clients. Have them email me at Chris@HotelRevenueMan.com and I'll correspond with them. Thanks for the comment!
This video you show $20 expense per rented room. Shouldn’t have been $20 per room (100 rooms). Because of fixed cost like electricity, water, tv cable etc.
Hello sir, helpful videis! Im struggling on forecasting😊, May I email you sir please
Sure!