By Anthony Rose - Director of Sales, IDeaS Revenue Solutions
That’s why it was so great to bring all these unique properties together in one room last week at the Wisconsin Lodging Innsights event in Beloit. IDeaS had the pleasure of hosting an interactive roundtable session that allowed the great minds of Wisconsin hoteliers to brainstorm ideas on how to elevate revenue management practices and achieve growth targets in 2023.
In case you missed it, or need a refresh, we have outlined some key takeaways and questions from each of the four roundtables, that you can take back to your organization.
Table 1: Business Mix and Market Segments
Are you in the right market segments for your property? Consider the importance of business mix to your strategy. Group business and events are back, but do you have a strategy for each? When evaluating group bookings, it’s critical to do a cost analysis and understand the displacement and profitability impact before accepting any discounts. Oftentimes, you don’t need to extend discounts on groups - hold the rack rate. What changes has your organization implemented to adjust to continuous changes in business mix?
Table 2: Pricing
How is your pricing strategy changing in 2023 to achieve your goals? Turning groups away that don’t align with your group strategy is a bold move, but a strategic one that could improve your bottom line. Properties are willing to let business walk away rather than take lower rates, allowing room for more profitable business to take its place. Educating front desk staff and others on pricing strategies, and the benefits of being selective, is important as well. Organizations like Kalibri Labs and TravelClick can help you research rates in your market.
Table 3: Total Revenue Management
Are there any areas of your business outside of guestrooms where you are applying revenue management principles & practices? If you have golf, a waterpark, or other amenities on your property, how are you maximizing the profit for each? Most properties are doing revenue management but are focused on the costs. However, there’s an opportunity to focus on the forecast to make strategic business decisions. (Check out our latest blog post – How to generate more revenue in a hotel: 6 easy tips.)
Table 4: Forecasting
According to AMR Research, for every 3% improvement in forecast accuracy, hotels see a 2% increase in profit margin. How is your team executing the forecast to take advantage of this? One common challenge for accurate forecasting that properties are faced with in 2023 is the shrinking booking window. Across the state, properties are seeing group booking windows shrink from 12-24 months to less than 12 months, while transient business has shrunk to a 2.6 day average booking window at some properties. With increased uncertainty, how have you elevated your approach to forecasting to improve accuracy, enabling you to achieve greater profit margins? How does your property distribute this knowledge and intelligence, rather than keeping it under lock and key with one person?
Special shout out to our table moderators: Jacob Davis, Brandon McConnell, Kristina McConnell, and Krissy Sigmund!
If you have any interest in becoming the ‘Revenue Rockstar’ that your hotel is craving, we encourage you to check out IDeaS’ Revenue Management Foundations. These at-your-own-pace online courses can answer the most basic of questions for rookies, and/or give a fresh perspective on revenue management practices you may have already implemented.
Got questions, or just want to have a friendly chat about revenue management strategy? I would be delighted to hear from you: firstname.lastname@example.org. In the meantime, we look forward to seeing you at WHLA events in the future!
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