IDeaS a SAS Company

IDeaS Revenue Solutions, the leading provider of revenue management software, services and consulting, today released a revenue management strategy report compiled by IDeaS Hospitality Consulting, in order to guide London hoteliers towards successfully optimized revenues during the Olympic period.

Excitement continues to build as the capital prepares for this major global sporting event, and London hoteliers are trying to determine how to best take advantage of the expected increase in both demand through the use of optimal revenue management and pricing strategies. However, there is an element of uncertainty about which strategies will be most effective in managing the increased demand.

These questions are further complicated by the lack of certain information on how, when and how much Olympics-related demand will actually materialize – historical data has shown that the four previous host cities did not once reach full occupancy in their Olympic years. Furthermore, London hotels were already completely sold-out during the summer of 2010 without the Olympics, and, on average, 400,000 visitors come to London during the main tourism season. As London already stands as a high-profile tourist attraction, hoteliers have to be extra careful not to displace regular demand.

The first recommendation included in the report highlights the importance of balancing the demand from the Games' attendees willing to pay high rates, against the need to please and maintain their existing customer base at potentially much lower rates. It will be finessing this balance that will contribute to revenue success in the long-run.

The use of carefully planned pre-paying options to help reduce the impact of costly last-minute cancellations, as well as the implementation of minimum length of stay requirements during the period, are just some of the other revenue management strategies IDeaS has recommended in the report.

London hotels are an integral part of the UK tourism industry and may even play a more pivotal role in shaping how a guest views London than the Games itself. This will have a positive, or negative, long-term demand and financial impact on the entire UK market, and is an important aspect to consider when planning for the event. The implementation of these recommended strategies combined with careful and detailed observation of the levels of demand will allow London hoteliers to achieve the correct balance between price and demand and be best prepared for the Olympic Games.

The London Olympic Games are to be held from 27th July – 12th August 2012, with estimates predicting an influx of 350,000 additional foreign visitors per day.

'2012 London Olympic Games: A Strategy Guide for UK Hoteliers' can be downloaded here.

In order to guide hoteliers through this period of increased demand, IDeaS will be hosting a complimentary webinar, on 29th March 2011, to demonstrate the importance of proper planning and share recommendations to help maximize your hotel's revenue.

To register for the webinar 'How Hotels Can Make the Most of Major Events: Strategies to Successfully Optimize Revenue" please follow this link.

About IDeaS

IDeaS, a SAS company, is the world's leading revenue management software and services provider. Combining industry knowledge with innovative data analytics technology, IDeaS creates sophisticated yet simple ways to empower revenue leaders with precise, automated recommendations they can trust. With 35 years of expertise serving hospitality, including hotel, event, and parking clients, IDeaS delivers revenue science to more than 30,000 properties in 164 countries around the world. Results delivered. Revenue transformed. Discover greater profitability at IDeaS.com.

Cris Herman
Global Client Marketing Manager
+1 952 698 4236
IDeaS

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