Revenue & Reservations Audits
All hotels must get their pricing strategy correct in order to maximise occupancy and room rates. With rooms revenue in hotels up to 85% or even 90% of total revenue, even minor errors in this area can have a significant impact on occupancy levels, income and profitability.
Our specialist audit contractor in this area has over 30 years industry experience to the level of Cluster Director of Business for Hilton Worldwide Hotels
We will look at your current Pricing Strategy, Distribution Channels, Segmentation (mix etc.), Use of Yield Management system, Competitors & Market Share Analysis and Miscellaneous Revenue including Cancellations & No Shows
View our “Revenue & Reservations Audit Leaflet Revenue & Reservations Audit Leaflet here
Case Study – Large Central London Hotel with nearly 400 bedrooms.
We were asked to go into a large London property to look at reasons for overbooking on peak nights, whilst investigating as asked in the brief we discovered the following:-
• Hotel had an email back log of 700 plus in the reservations office
• Deposits of Circa £50k still had to be processed
• A series of booking valued at £120k were still not confirmed or contracted by the hotel (company had been chasing this for 5 months)
• Competitor set had been recently changed, but no changes had been made in the yield management system to deal with these changes
• Yield management system was not utilised properly
• Control of inventory was not happening as it should be
• Rates had been loaded into the system incorrectly
• Rates had been contracted incorrectly
• Poor decisions had been made without the use of the revenue management system or a displacement tool.
We wrote a detailed report listing our observations and recommendations which was presented to senior management. This allowed the hotel to review their entire revenue strategy making it more efficient and up to date. Profitability increased.