A Post-Crisis Top-3 Revenue Management Action Plan
— 14 experts shared their view
The global hospitality industry has been through every perceivable calamity over the past decades: earthquakes, tsunamis, tornados, major floods, terrorist attracts like 9/11, SARS, global recessions, epidemics and pandemics like SARS, MERSA, ZIKA, swine flu and now COVID-19.
After each crisis the industry came roaring back and I believe it will recover very quickly after the current COVID-19 crisis and prosper like never before.
Naturally, each region and destination has had and will have its own decline and rebound curves as far as hotel occupancy, ADRs and RevPARs are concerned. Recovery post COVID-19 will also be unique to each region, destination and property and will greatly depend on a) the underlying economic conditions in each region and destination, b) the preparedness of each property for the post-crisis period, and c) the lingering impact of short term tactics employed in each market during the crisis.
This down time of low hotel occupancies or property closures is the perfect time for POST-CRISIS planning, revenue optimization action plan development, product and marketing campaign ideations.
The question to the Revenue Management community is, which specific action-items SHOULD be included in a hotelier's Post-Crisis Top Three Revenue Management Action Plan? In addition, please suggest one creative, OUTSIDE-THE BOX idea... something we may not have seen yet in revenue management. Just an idea... big or small.
CEO of RoomPriceGenie
I would suggest that a great idea at this time is to use the enforced break to re-envisage what you want your hotel to be. Whilst the operations are running, it is often difficult to stop and think about this vision. More than that, it is hard to put things in place on a moving vehicle. To use this time for learning, if you are not a revenue management professional, I can recommend this course from ESSEC on Coursera.
Also, for smaller hotels, I have written this book that summarizes some of the best ideas from various experts.
In particular, now could be the time to look at the software stack. What PMS would you really like to have? I would say that unless you have an open, cloud-based PMS you are storing up problems for yourselves in the future. Now seems the perfect opportunity to change. Which booking engine, which marketing, which upselling software do you ideally want? Many will have offers for new clients now. At RoomPriceGenie, we make simple Dynamic-Pricing/Revenue-Management Software. The algorithm is unique in that it works mainly on market-positioning. It will be perfect for coming out of this crisis, where you don't want to go too low (ruin the market) or too high (not get bookings). And to help the hotel industry bounce back, we are offering a totally free service until the end of the year. Contact us for details. Previously, good times enabled hotels to become complacent. But in these times, coming back better than ever will be crucial. Now is the time to think about how to achieve that.