Hoteliers Take a Harder Look at How They Set Room Rates
Amateurs cut rates to fill hotel rooms. Pros take more sophisticated approaches, such as coordinating to stimulate demand from the most profitable customers.
Some hotel operators — MGM Resorts, RLH, Omni, Radisson, and Melia — have been fine-tuning their efforts at setting rates for rooms, upgrades, and other services. They've been leveraging a growing prowess at automation and cross-department teamwork to set prices for maximum profit.
A case in point: MGM Resorts International has aimed to add tens of millions to its bottom line this year from enhanced revenue management.
MGM Resorts intends to focus more on reserving space for its most profitable customers —namely, gamblers, convention-goers, and leisure travelers who book directly. It can do that by targeting promotions to people who are more willing to spend on food, drink, and upgrades.
