Hotel Revenue Management with Scott Dahl

The difference between a hotel that’s profitable, and one that isn’t, can often come down to the last 10% of its revenue. That means it’s extremely important to seize any opportunity to optimize your pricing strategy. For smaller hotels, it may be even more important, since there’s a larger potential upside However, these hotels are often struggling with limited resources and other challenges that big establishments don’t face. In this video, we talk to Scott Dahl from the Les Roches Hospitality Management School in Crans-Montana about how smaller hotels can keep a tight grip on their revenue management and ensure they stay profitable and healthy. We talk about how smaller hotels can manage their prices and maximize profits, for example through effective forecasting. Hotels of all sizes have a range of different tools available to them when it comes to managing their revenue. We discuss how applying length of stay restrictions can help you prioritize longer stays over shorter stays when demand is high, and we also cover the possibilities around offering different products and combining multiple hotel services to offer packages. A crucial part of managing revenue is having a channel-specific distribution strategy. Especially as limiting distribution costs can sometimes increase profitability more than raising prices could. After all, it’s great when a third party can sell rooms that you wouldn’t have sold otherwise but is it always worth the fee? It’s important to have a mindful distribution strategy and gain clear insight into your own bookings. Scott also talks about some of the software small hotels can use to access valuable market information and better understand their own booking curve, and when it’s best to use a dedicated revenue management system. This is a no-brainer for big hotels who can easily afford it, but smaller hotels can also often benefit from upgrading their basic systems and using technology in a way that doesn’t create extra work. --