Mr. Prashant Mishra, the esteemed Founder and CEO of Retvens, a
leading innovator in the hospitality industry
How Does Hotel Revenue Management Work?
Revenue management plays an essential role in the hospitality industry. But one of the major questions that arises is: Why is revenue management important for hotels?
As financial performance is the greatest factor that helps the hotel make the necessary measurements and meet the needs of its guests, it is important to learn about revenue management and its key processes.
To fill the gap in the market, Retvens understands the importance of revenue management in local hotels. Revenue management expert Mr. Prashant Mishra, who has been a hospitality professional since the beginning of his career and has 15+ years of experience, built the world’s largest hotel revenue management company, Retvens Services.
It was obtained that various big hotel brands in the world have a systematic revenue management system, due to which they focus on creating guest engagement and guest satisfaction, but the important question arises: do small hotels or local hotels use the revenue management department and utilize it to understand the demand and supply of the market?
Why Revenue Management for Hotels?
Revenue management is a system that uses hotel performance data, tools, and data analysis to identify customer behavior patterns and take advantage of this insight into distribution channel management.
The goal of revenue management is to increase hotel profitability by optimizing pricing and inventory by creating a systematic demand and competition analysis for hotels. With the help of revenue management, the hotel can maximize their revenue for rooms available, and with the use of revenue management techniques, they can improve their inventory to attract more guests.
What is the primary purpose of revenue management?
The primary purpose of revenue management is to optimize room occupancy and the average rate paid for each room to make sure that the hotel gets maximum total revenue. Effective hotel revenue management helps in better managing resources, ensuring an adequate number of staff are working during the busiest time, and ensuring protection against punch lists for many staff during a slow period.
Why is revenue management important for the hotel industry?
Creating a highly effective revenue management plan for a hotel is important as it has an improving occupancy rate to enhance the guest experience, creates a revenue management strategy, and gains competition in the market.
To achieve these benefits, hotels need to successfully implement revenue management strategies by understanding market guests and competitors with the help of effective real-time data analysis.
What is Hotel Marketing?
Hotel marketing is another effective strategy that is used by various hotels in India to promote their services and build a brand. Marketing for a hotel refers to a tool and strategy that helps in the promotion of a hotel, bring in new customers, and retain past customers.
In simple words, hotel marketing helps you understand your target audience and your competition.
Why is hotel marketing important?
Hotel marketing is another effective strategy that is used by various hotels in India to promote their services and build a brand. Marketing for a hotel refers to a tool and strategy that helps in the promotion of a hotel, brings new customers, and retains past customers.
In simple words, hotel marketing helps you understand your target audience and your competition. Hotel marketing is one such technique that helps you grab the attention of potential guests and make you a better brand.
Some major key things about hotel marketing are: understanding your audience better; making guests aware of your hotel potential; attracting new customers; and enhancing customer engagement.
What are the 4 P’s of marketing in the hotel industry?
The four p’s of marketing in the hotel industry are product price, place, and promotion, which play key roles in creating a successful marketing strategy.
Product
The product in the hotel industry refers to the services that the hotel offers to guests, which helps in targeting specific categories and niche markets.
Price
Price is another major factor in marketing strategy, as it helps attract new businesses and new customers.
Place
The most significant factor when it comes to hotel industry marketing is that most customers select the best hotel based on their location.
Promotion
Having the right product, the right price, and the perfect place can’t make any difference if you are not good at promotion.
Successful hotel marketing depends entirely on how effectively you use social media for promotion and to attract new customers.
Summing Up
In the end, all the hotels in India need to have a revenue management system to understand the demand and supply of the market. Changing the digital preferences of customer revenue management can be an effective management tool to stand out. In addition, hotel marketing is also an important technique to create a larger impact on the audience and attract new customers. As the hospitality industry is growing drastically, the vision of Mr. Prashant Mishra is to provide hotels with the best revenue management services as well as marketing services to create an impact on expanding their traditional promotional practices into something that aligns with market trends. Retvens Services currently works with 160+ hotels, offering the best revenue management and marketing services to the hotels in India as well as in Saudi Arabia, Oman, and Bhutan.
So, don’t stay behind with traditional techniques to run a hotel; expand your revenue and marketing game with Retvens Services.
