Revenue Management Key to Successful Holiday Season and CRM Strategy
As the holiday season approaches and people prepare to travel, CRMToday.com, a leading business to business Web site, provides crucial information about revenue management to help hotel executives maximize their revenue during the holidays. In the article, "Revenue Management for the Hospitality Industry," professionals can learn about proven revenue management strategies in booking and pricing to maximize their occupancy rates and potential profits and learn why a revenue management philosophy should be included in any customer relationship management strategy.
(PRWEB) November 15, 2006 -- Leading business to business (B2B) Web site CRMToday.com's article "Revenue Management for the Hospitality Industry" offers key insights into revenue management for hospitality businesses this holiday season. The revenue management article gives hospitality professionals crucial revenue management strategies to take advantage of a potentially higher number of holiday bookings this year. According to Expedia Travel TrendwatchTM, based on a survey conducted by Harris Interactive, 42 percent of U.S. adults indicated that they would prefer to stay at a hotel when traveling to visit family out of town during the upcoming fall and winter holiday seasons. Through revenue management concepts, hospitality executives can maximize occupancy rates and revenue for the 2006 holiday season without having high room rates or overbooking alienate their customers.
In an article on HospitalityNet.org, hotel marketing coach Neil Salerno reports, "Hotels practicing revenue management gain an insight into the ebb and flow of business, knowledge of reservations booking pace, and a true understanding of factors that impact occupancy and average rate."
Hotels need to predict capacity fluctuations between peak seasons like the holidays or even peak times of the week, such as weekends, and other non-peak times. Revenue management takes into account these and other factors such as variable rates for variable amenities or rooms with a view. It seeks to balance the number of rooms with lower rates that hotels can make available for early reservations and promotions with the higher rates a hotel could charge as the holidays get closer and the demand for rooms increases.
Holidays have a different impact on the hospitality industry than other times of the year. In a research paper "The Effect of Holidays on Hotel Daily Revenue," The Journal of Hospitality and Tourism Research states that by "understanding the impact of a holiday effect, a marketing strategy can be developed by the hotel to maximize revenue." A revenue management strategy is essential to take advantage of peak times and to guard against lulls in the business.
Aggressive revenue management is a sound practice that needs to be balanced with how hotels manage their customer relationships. Consistently charging higher rates for certain groups of customers or overbooking rooms to try and compensate for less than full occupancy can affect customer loyalty as well as the hotel's reputation. To help guide decisions about revenue management, CRMToday.com's white papers, articles, advice columns, and other tools offer relevant, in-depth information in customer relationship management, revenue management, and other B2B industry verticals.
CRMToday.com provides business information, resources, and interactive tools that help companies improve their customer relationship management. Expert advice from industry professionals, company profiles, and other features make it easy for businesses to learn more about how customer relations can shape a company's consumer loyalty.
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