Revenue Management Strategies

Forget About Your Peaks and Start Managing Your Valleys - By Chris Snyder

I don't want to sound critical, evil, or cynical but there are certain truths about how we as operators are managing our hotels and resorts here in Asia, and in Thailand in particular. I truly believe with all my heart that we can change the industry, learn from what we are doing wrong and make corrective actions and become more profitable. Here in Thailand, we have suffered from natural and manmade disasters that we have struggled back from to get where we are today.
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The Snyderman Chronicles

Revenue Science Corporation I don't want to sound critical, evil, or cynical but there are certain truths about how we as operators are managing our hotels and resorts here in Asia, and in Thailand in particular. I truly believe with all my heart that we can change the industry, learn from what we are doing wrong and make corrective actions and become more profitable. Here in Thailand, we have suffered from natural and manmade disasters that we have struggled back from to get where we are today.

When I say forget about your peaks and start managing your valleys, this is what I mean. First, identify your peaks. Here in Thailand, this is simple. You could even identify your peak periods a minimum of one year in advance. If you really know your business, this is easy to do.

    ·Identify your peaks
    ·Set your BAR price

    ·Set your length of stay restrictions

    ·Set any prepayment you want

You will most likely have between 10 and 30 days every year (based on your destination) that you have the demand to sell out your hotel. Set your strategies and move on.

If you sell out between 10 to 30 days a year, what are you doing on the other 335 to 355 days of the year? It is what you do on these days, your strategies, your rates, and your restrictions during the majority of the year that will help you win or lose market share to your comp set.

I would be willing to bet if you are at your natural market share position or less, then you are not focusing enough time, energy, or resources to drive demand on the 335 to 355 days that you are not selling out.

In almost every situation, when I had a hotel or resort that was under-performing, in order to reverse this quickly and see gains in market share, I focused the majority of the sales team and my team to drive demand on the valley dates and it always worked. I drove demand into dates that were historically low and told the sales team not to worry about the 10 to 30 days a year we are going to sell out, I'll take care of those dates.

    1. Know your market
    2. Identify your sell outs

    3. Understand your demand

    4. Identify your sales people's strengths & weaknesses

    5. Focus your core sales and marketing efforts on the valleys

    6. Identify what works, focus on your strengths

    7. Identify what doesn't work, build on your weaknesses

How many days a year do you sell out and how much time are you spending on those nights vs. the other nights?

Chris Snyder is the Director, Professional Services for Revenue Science Corporation's Bangkok Thailand office. Chris leverages more than 27 years of experience in the development and implementation of sales and revenue growth strategies for hotels & resorts. Chris's strategies have grown market share in hotels & resorts around the globe.

PRIMES Revenue Management System is the great equalizer. It is a next generation RMS that has many industry firsts from our Wholesale functionality to our patented forecasting algorithms, & fully programmable, language and support. Revenue Science Corporation based in Hong Kong & in partnership with Hong Kong Polytechnic University School of Hospitality & Tourism Management also has an office in Bangkok Thailand. Our professional services boast more than 60 years of experience in hospitality leadership. Contact us at sales@revenuesciencecorp.com for a presentation.



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