Home
RM Tips and Strategy
RM Tips and Strategy

Anticipating demand and getting insights is crucial nowadays, more than ever before.

I followed a webinar about hotel current booking performance organized by Ideas and STR. Here are the different points they highlighted!

Emmanuel Scuto
March 11, 2020

We had a recent discussion with one of our clients who informed us that his demand is currently going down a lot and this will require a price drop. So, before he acts on this decision, we took a look at the analytics available in the apps of WeYield. The conclusion was that the demand is not shifting…yet at least.

I followed a webinar about hotel current booking performance organized by Ideas and STR. They highlighted some points:

  1. Hotel Revenue Per Available Room (similar to RevCar in car rental Industry and equals RPD or ADR x utilization or occupancy ratio) in Apac was hit from -17% in Australia to -100% in China; Dubai is overall -20%; Europe is from -10% in Ireland to -40% in Italy
  2. Events (fairs and congresses) that were planned to take place in February and March were majorly canceled (62) or postponed (99). Most Italian cities were impacted as well as Athens and Barcelona
  3. For Europe, in major cities, business on the books for the second half of March is lower but not that bad. To be continued over the upcoming weeks.

One crucial teaching the hotel industry had following 9/11 or Lehman brother collapse in 2009, and their subsequent major price reductions, is that it took hotels around 24 months to recover!

Do not start a price war.

What should you do for your Revenue Management instead?

For your marketing, you can take this health situation to strengthen your client loyalty:

For your marketing, you can take this health situation to strengthen your client loyalty:

Show you are concerned for your customer’s wellbeing.

For the team of decision-makers in the company, the power of WeYield web apps is fully available from anywhere, refreshed every night, and available first thing in the morning to monitor any changes.

Marc Beioff, SalesForce : “It is time to change. Not only because it is the right thing to do, but also because success demands it.”

Feel free to contact James or Noémie, WeYield Customer Success Managers, if you want to know more about WeYield apps.

Published by

Published

by

Emmanuel Scuto

Expert in Revenue Management and Pricing in the Car Rental industry for 20 years, I aim to share my optimization experience with our customers throughout the world. I am specialized in revenue maximization, pricing strategy, yield management, reporting based on AI.

Linkedin logo

Our readers also liked

mail list

Newsletter

Subscribe to our newsletter and be the first to receive the most relevant information and best practices on revenue management.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.