Hotel revenue management requires an eye for detail, interpersonal aptitude, technical skills and analytical prowess all combined. From managing room rates to negotiating commissions on distribution channels revenue managers today must be skilled at all commercial aspects of the hotel business. Finding the right price for hotel rooms is both an art and a science. So how does one become a It’s astonishing to see how far the hotel revenue management discipline has come over the past decade. Ten years ago, revenue management was basically a finance guy in the basement office of the hotel looking at historical data, building a forecast or budget in Excel, layering in on-the-books data and recommending a single rate, which was then manually entered into the PMS. It’s critical casino marketers make educated decisions on how to price rooms and look at hotel rooms less as giveaways and more as revenue generators. Casino marketers who practice basic revenue management can turn their lucrative gaming property into a profit-generating machine. A simple example: If it costs $30 for you to maintain a hotel room and you can get $35 to rent it out for a night There are three main controls or "levers" that the revenue manager can use to optimize revenue, and by working those "levers” the hotel can maximize its revenue. Of course that's the theory, but getting to know these levers of revenue management will help managers better understand the opportunities and limitations of maximizing revenue. In 2013, El Cortez Hotel & Casino started using Duetto revenue management software to track shopping behavior. Based on predictive analytics data, they took away discounts on some unnecessary positions, changed their pricing policy by decreasing midweek rates, and increasing rates on weekends or during some events. Also, the hotel changed their policy for the casino segment by identifying the channels that emerge every year, hotel and casino groups can’t keep up merely with a revenue management mind-set. Your guests have learned to shop for deals on OTAs like Expedia and Priceline over the past decade, and tech giants like Google are trying to muscle into that space as well. Newer threats are popping up constantly in the “sharing economy,” where Airbnb has become the dominant Today's revenue managers need these four components to build the foundation for successful hotel revenue management: Compset: Competitors’ rates are also a critical input for setting the best rates, as those prices shape the consumer's perception of the “right price” for a given stay. Together, these inputs provide a valuable baseline for hoteliers to optimize rates. Value analysis: A When implemented effectively, a solid casino-centric RM strategy can help casino managers market their casino to the right audience and price their product to boost bottom-line revenue. In Duetto’s latest webinar, “ Understanding the Basics of Casino Revenue Management ,” Nevin Reed, Senior Director of Casino Services, explores the fundamental concepts behind casino revenue management.
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