Are you on track of reaching your revenue goals?

If you miss your revenue goals, you cannot make planned investments

If revenue remains behind budget, hotels must cut costs to maintain profit, often leading to poorer service quality in the hotel, poor reviews and, ultimately, even lower revenue. Missing revenue goals often prevents the hotel from making planned investments, which leads to a worse guest experience and this leads to even lower income. A vicious spiral is created, if hotels do not counter-act quickly.

Common problem root causes

  • Inadequate / lack of structured pricing strategy and / or contracting strategy.
  • Guidelines and policies in the company are not followed or missing entirely.
  • The budget incorrectly set due to insufficient understanding of the market potential and inadequate data base.
  • Shortcomings in the forecasting work, leading to late action.
  • Hotel is not aware of the reason why the revenue goes down and does not know what should be done to change the trend, lacks the data basis.
  • Hotel has done incorrect analysis of the causes and does the wrong activities (market, sales and RM ) that does not cause the trend to change to the positive.
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How you can fix it

  • Analyze "On the books" to identify months / periods with the greatest deviations
  • "Segment analysis" gives deeper answers from which deviation comes (feeder market, channel, segment, rate code, etc.). Is the identified deviation in accordance with the strategy? If deviation is unplanned, dig further to find the exact reason, use the "Company / Travel Agent / Rate-Report" for more facts, examine channels and ranking history, guest satisfaction
  • Analyze "Day Pick-up" for weekdays and weekends respectively. 
  • Check if guidelines are followed, Rate Spread looks normal distributed?
  • How does the commercial team look and the interaction between them? 
  • How are forecasts and activities taken and communicated?
  • How often is strategy revised?
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Customer Case: Insights showed potential

"Having a small hotel in a very seasonal and competitive market with all benchmarking KPIs well above the competition, I still needed to better understand how to maximize each season. With Demand Calendar, I got the insight that my rate was too low even on my best days of the year. Since then, I have increased room revenue solely by a higher rate, which means that my profit has increased substantially."

Photo of Carl von Schulman
CARL VON SCHULMAN
OWNER / GENERAL MANAGER

Want to talk about how to reach your revenue goal?

If you are not fully on track of this year's revenue goals, we would like to suggest a meeting to discuss how we may be able to address your issues and what is causing them in order to be able to plan for how you can ramp up your revenue.

 

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