You may have already noticed that when making a hotel reservation, the prices for the same room
may change depending on the day of the week, the month of the reservation or some special event.
The same goes for flight reservations, prices for the same service change according to various factors.
Well, this happens due to the management method used, Revenue Management, and it is precisely
about this technique that we are going to talk about in this post.
Today you will better understand what it is, how it works and why it is so important for some
companies. In addition, you will discover what are the best practices of this resource that, when
combined with Digital Marketing, can bring you excellent results.
Will you join us?
What is Revenue Management?
Revenue Management is a technique that mexico telegram data emerged in the 1960s as a
management tool for airline companies and is now used by various sectors, mostly related to tourism.
The secret of this technique is in selling a product or service to the right customer, at the best time,
with the most convenient price and through the most appropriate channel.
And it is precisely the combination of all these elements that makes this method so appropriate for
the sector.
To achieve this harmony of factors, it is necessary to perform a predictive analysis of the historical
and current data of the product or service that will be marketed to obtain maximum benefit.
Why is Revenue Management so important in companies?
Revenue Management monitors the marketing with child influencers: benefits and best practices demand for the product or service that is for sale.
Let’s look at an example of a hotel on a beautiful beach far from the city:
The highest occupancy rate will probably be during the summer months and even more so during the
school holiday period. During this time when demand is higher, room prices will also be higher and
even so, this is the period when the hotel will have its highest occupancy rate.
However, this season does not cover even a third of the year and the other months the price of the
rooms will be lower than their average value, in order to try to attract another type of public: those
who seek to rest breathing the sea breeze in a place with fewer people and less heat.
But Revenue Management is not just about that , as it is also necessary to discover how to reach
each of these two very different audiences and what is the ideal means to reach each of them.
In this way, the hotel in our example will be able to have clients at any time of the year and thu
s organize the best way to avoid losses and be able to cover all its financial responsibilities.
In which sectors does it act most strategically and how?
Revenue Management can be applied in bf leads sectors with the following characteristics:
Limited product or service
This means that there are a limited number of sales. For example, in the case of a hotel, there is a
limited number of rooms available for each day.
Market segmentation
As we saw in the previous example, there are different clients and each of them has different needs to
cover.
In this case, some people want to enjoy the summer on a beautiful beach and others want to enjoy a few days of tranquility away from the hustle and bustle of the city.
Low variable costs and high fixed costs
If your business’s variable costs are low compared to your fixed costs, you cannot afford to stop selling.
For this reason, the greater this difference is, the better you can take advantage of this technique.
Perishable product or service
This means that the service or product offered will no longer exist after a certain period. In the case of hotel rooms, they are a product for a certain day.
Possibility of advance sale
That is to say, the product or service can be sold in advance.
Revenue Management is a technique that works very well with the tourism sector, as in the example we saw previously.
In addition to hotels, it is used by airlines, land travel companies, cruises, car rentals, and even some restaurants, shows, theaters, among others.
If your business meets the requirements we mentioned above, this technique will surely help you improve your numbers.