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: hotelrevenuema....
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.
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
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 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
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!
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.
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. ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-eqSjP_Uv5qs.html
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!
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.
@@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: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-EjyLcwUyNtE.html. Let me know what you think. Thanks for your comments!
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.....
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.
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.
