Hotel Pricing Strategies Include Optimizing Segmentation, Capturing Ancillary Revenue
Revenue Experts Share Priorities for 2022
Hotel revenue managers are entering the new year with revisions to their core strategies to best optimize segmentation and capture ancillary fee opportunities.
Hotel revenue managers are entering the new year with revisions to their core strategies to best optimize segmentation and capture ancillary fee opportunities.
Hotel News Now reached out to four hotel revenue managers who shared how they are preparing their revenue teams to succeed in 2022.
Cheryl Huhn, Corporate Director of Revenue, Essex Hotel Management - "With the effects of COVID still lingering in 2022, we will continue to be agile in a few different strategies by offering flexibility in cancellation policies, shorter booking windows and holding our rate strategy by offering add-on value packages as an alternative to lowering rates."
Dury Kim, Vice President of Revenue Management at Real Hospitality Group
"While strategies are always important, in 2022 it will be critical that revenue teams be nimble and flexible. Due to the nature of the virus, many governments domestically and internationally are constantly changing in response to the new variants. In the recovery following the pandemic, it will be important to focus on optimizing segmentation as well as capturing any ancillary fee opportunities.
"What we've noticed during the pandemic is that there were very limited segments that had the majority of the production, and as restrictions release, and other segments such as corporate or group begin to contribute more to the mix, it's a great time for many of the hotels to reset some of their core segment strategies. Understanding segment demand will help teams pivot and deploy pricing, length of stay and room type strategies. For example, in one of our markets, New York City, we saw international interest grow for the holidays following restrictions release and many properties had to immediately pivot to take more rate risk and maximize on room-type premiums.
"Operations team members will remain crucial to the revenue-management process, with their level of attention to qualifying traveling guests, it will arm the revenue and sales teams [with] what their largest requests are, to maximize opportunities such as late check-out or upgrade requests, in addition to identifying any local negotiated accounts."