Improving Performance Through Revenue Management & Pricing

Revenue management can be simply defined as selling the right product, at the right time, to the right guest, at the right price. But it takes a lot of thinking and research to make a sensible and informed judgement on how best to achieve this!

Delta Squared has the proven ability to bring a fresh, external and unbiased perspective to evaluate, validate and review revenue management systems, organisation and process. An objective assessment that is not afraid to challenge current strategy but one that will also share industry best practice to optimise the process and thus generate more profit.

Delta Squared can help develop strategy, systems and processes through detailed questioning of how it’s done; how it’s managed and analysis of key factors such as:

• Understand the competitive environment
• Compare competitive pricing
• Measure performance against competitive set [market share – RGI, MPI, ARI]
• Analyse revenue per available room [REV/PAR]
• Assess average daily rate [ADR] opportunities
• Consider occupancy opportunities
• Investigate and recommend inventory controls
• Review / audit current Revenue Management systems, tools & processes
• Review channel volume and rate mix – [centrally, web-site, third parties]
• Examine market segmentation volume and rate mix

Having established the level of performance against the competition, we can progress to questioning how to identify growth opportunities and how best to secure them through price/cost analysis.

Are the right tools for the job in place to drive revenue benefit?.

Discover and define:

The problem / opportunity. What we are doing and the reasons why.

Design:

What will the new Revenue Strategy look like?
What systems, processes and tools to use?

Build and acquire capabilities:

Create the end product. Build the product, process or system, which includes such activities as, training tools and materials, system development, configuration etc.

Test:

Will it work? This will include, pilot of processes, pilot of training material and confirmation that product or system is fit for purpose.

Implementation:

How will it be handed over to the business? This includes the deployment of training and support into the business and systems handover. This phase includes the deployment of the change management plan, which in turn includes the internal communications plan.

Delta Squared have the knowledge and skills to help develop strategy plus advise on the correct structure and software systems to create optimisation routines, establish control mechanisms, generate accurate data and help identify how best to utilise it to increase revenue!

“Success is just a matter of luck, ask any failure” Earl Wilson