HospitalityNet: How to manage revenue in a pent-up demand era?

https://www.hospitalitynet.org/panel/125000129/126001266.html

Recovery is looking very different depending in the location and type of property. Revenue Managers at resorts and beach destinations are enjoying great demand, and in many cases, an ADR higher than in 2019 is being achieved.

Also, managers of small boutique properties are seeing how the demands is steadily strong, as many guests still try to avoid social contact and choose accommodations where they can maintain a certain bubble.

in the above-mentioned cases, all Revenue Managers must do is be smart with the pricing, as the pent up demand is there.

The challenge comes when we look into city properties, especially the ones that are mainly designed to cater to the MICE and Corporate segment. In these cases, recovery is going to take much longer, and is not certain that for these particular business, it will go back to pre-pandemic levels.

For these properties, there are different initiatives being launch in properties globally to entice guests to return, such as:

  • Convert part of the inventory into “offices with an adjoining bedroom”, which can be appealing for the longer staying business guest.
  • Make a different use of certain spaces, adding value to otherwise “no-man-land” lobbies and currently unused meeting spaces. From new pop up outlets, to co-working areas. Ans inspiration can be the “Working from” concept from The Hoxton group.
  • Improved used of tech: Technology allows guests now to open the room door with their phone, we all know that. But what about implementing apps that let guests book a table at the restaurant, a slot at the gym or a massage of their choice? Apps such as Hoteligy let you do that, thus increasing guest satisfaction and ancillary revenue.

All in all, due to the lack of demand in urban locations, these hotels are focusing more now on driving other sources of revenue, in what can be the road towards Total Revenue Management.

Pablo Torres

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