Are the results of your establishment the best you could have? If analyzing your historical data, you realize that there is some room for efficiency improvements, the figure of Revenue Manager may be the solution to your problems.
Why should you outsource your Revenue Management?
The role of Revenue Manager, emerged from more than five decades ago, and it has been improving to become an indispensable figure in commercial policies of hotels, hostels, bed & breakfast and other kinds of tourist accommodations. However, Revenue Management is a strategy that requires experience, time and dedication; therefore, it is advisable to have a work team dedicated exclusively to it.
By outsourcing Revenue Management and trusting in professionals of this area, you can forget about your daily basis analysis of data. The outsourcing of Revenue will help you to predict the demand behavior, in order to optimize your inventory and prices allowing you to maximize your income.
Even in cases where resources are limited, excellent management of Revenue can increase the benefits of your establishment.
You will count with specialized professionals in Revenue Management with more experience
As we said above, applying Revenue Management in your establishment requires knowledge and experience in this area. Setting a correct market segmentation, knowing which are your Yieldable vs. No Yieldable segments, developing a sales forecast, creating demand calendars, analyzing the Pick Upp, pricing, or study main competitors, are just ones of the tasks that every Revenue Manager must know and do properly. As a expert in this sector, you will know that it is not easy to find experienced professionals in this field. Also, the investment you must make in human resources, technology and training is also significant. By outsourcing Revenue Management in your accommodation, you will save this investment and you will have a team of experts who will do these tasks with guarantees of success.
Greater market knowledge
Entrusting the Revenue outsourcing to a team of experts who manage dozens of establishments like yours on a day-to-day basis, provides your business with privileged market information. The professional company in Revenue Management, works with much more market data and will better contrast your information and results.
Working as a team, better results are achieved
Outsourcing Revenue, you will leave your establishment in the best hands. You will have a team that spend all their time maximizing your benefits. If you are a small chain or establishment, this will be your best option.
You will work with advanced metrics and tools
To apply Revenue Management strategies, it is necessary to know your first competitors and potential clients in a close and technical way. The intention is to stand out and differentiate from the competition, as well as to provide products adapted to the requirements of the public at the right time they need it. For this reason, studies are carried out where information about the business, competition, clients and potential clients is collected. All this data is introduced in tools where information is checked through metrics and used to perform statistics which will be vital to improve your results.
More objective view of business conditions, needs and strengths
To design this strategy, you must evaluate all the strengths and conditions of the business. This will allow you to assign a cost for appropriate accommodation according to the behavior and tendency of your guests. Some hostel owners are afraid to increase their rates according to competitive levels of the market, even fulfilling all the conditions to be located in a higher target. The outsourcing of Revenue Management will give you a more objective analysis of the factors that affect the adjustment of rates. In this way, you will determine if your rates are above or below the market average, taking into account price-quality ratios.
Remind you that applying Revenue Management strategies, you are investing directly in improving the profitability of your company, so do not waste more time and contact us to start boosting your incomes!