The outsourcing of Revenue Management implies that an external company is in charge of all the tasks related to the management of hotel rates.
At Hotel-lo we are experts in Revenue Management and we believe that our discipline goes far beyond Pricing. In our outsourcing service we include strategic tasks (such as defining the sales forecast of our clients) as well as operational tasks, exactly as a Revenue Manager on staff would do.
We perform all the functions of the hotel’s Revenue Management Department.
It is of little use to set prices correctly if the Internet strategy is not adequate.
We take care of optimizing OTAs, metasearch engines, social networks and in general all the sites where the hotel has a profile.
Sales through the hotel’s website could be just another variable of Online Distribution, but for us it is one of the main objectives.
Unwanted overbookings, connectivity issues, OTA complaints, price disparities, etc. The list of unforeseen events in the daily life of a hotel is very long. Do you really want to deal with all this without any help?
The tourism sector is avant-garde in many aspects: technology and marketing are constantly evolving. In order not to be left behind, it is necessary to dedicate many hours or rely on a partner who is up to date and who will make sure that your own customers are up to date as well.
Why do we raise a price or lower it? We share our decisions with the hotel team and, in this way, the entire staff understands the Revenue Management culture and is unconsciously trained to make better decisions.
Outsourcing Revenue Management in hotels offers a number of benefits. Here we highlight the three most important ones.
In short: you earn more, spend less and know how to face the continuous changes in our sector.
Before we can make any decisions, we need to be able to access the hotel’s historical data (PMS, internal data sheets, online reputation, etc.) as well as receive a constant flow of updated information, with data that is updated in real time.
After extracting knowledge from this mass of data, we can move on to the next phase.
This is the phase in which we redefine, for example, the hotel’s pricing structure, its presence in the OTAs, the validity of certain contracts with intermediaries, the effectiveness of the website, etc. We can even propose and consolidate a new positioning of the hotel with respect to its competitors (which we study in depth).
Within a well-defined strategic framework, we implement tactical actions that have very specific objectives: optimize sales on key dates, improve profitability by room type, launch exclusive promotions for repeat clients, etc.
All this, without forgetting the control and daily update of rates several months ahead.
After establishing a shared work methodology with the client, the collaboration enters a phase in which all the strategic changes have been introduced and a calendar of actions has been created. During this “mature” phase, the client receives periodic reports and face-to-face or online meetings are held to verify the results obtained, make adjustments and propose new actions.
The results obtained with respect to the objectives we set, as well as market trends, define this phase of Continual Improvement.
The price depends on the characteristics of the hotel (number of rooms, category, reference market, etc.) as well as the scope of the outsourcing, which may or may not include some of the services listed on this page. In any case, outsourcing Revenue Management is cheaper than hiring in-house staff, and this is also valid for small chains with only a few establishments.
Revenue Management techniques can be applied to a single bed and, therefore, to a single apartment. There are no theoretical limitations. We recommend our Revenue Management courses to any tourist licensee who does not want or cannot access an outsourcing service.
When more apartments are available, outsourcing becomes an extremely interesting option, particularly in highly competitive markets. The difference in profitability brought by a professional Revenue Manager can be amazing. Contact us without obligation to receive a personalized offer.
In our 20-year history at Hotel-lo, we have worked with properties of various types and with the main hotel chains in Spain, always remaining faithful to our philosophy: based on close and personalized treatment, which goes beyond mere words.
We feel like the Revenue Management Department of our clients, as if we belonged to the same company. Since we play on the same team, we have no problem helping in any way we can, even in those tasks that many competitors consider not their responsibility.
It’s normal, outsourcing Revenue Management is an important and highly strategic decision. Perhaps, before making it, you can verify our working methodology by commissioning a Revenue Audit from us, which will provide you with a clear and perfectly implementable action plan.
This way, you will have a clear vision of how your property should evolve, whether or not we are the ones implementing the plan.
