Rate dilution has continually plagued the hotel industry; it provides a temporary fix to increase occupancy and sometimes increases market share. However, it also has the potential to incur long-term damage to a property and its reputation among consumers. When properties take a reactive approach and lower rates without a larger strategy behind that discount, they run the risk of losing loyal customers willing to pay full price - price cannibalization. Hotel management must remain proactive and work collaboratively across property teams to influence the property's rate strategy and avoid the rate dilution war. Following, note several best practices in property revenue management. READ MORE

While rate dilution provides a temporary occupancy fix for properties it has the potential to cause long-term damage to both the property and its reputation among consumers. Hotel management must remain proactive and work collaboratively across property teams to influence a property's rate strategy and avoid the rate dilution war. When management works with all departments that could provide insight, including marketing, operations and sales, teams they can generate a proactive strategy based on in-depth market knowledge. While each hotel does not have an on-site revenue management team, every property does need a proactive, targeted plan. READ MORE

The hotel industry can benefit from the adoption of stock market principles in the area of revenue management. Because of the many similarities between the product sold by hotels and the products traded on various exchanges by financial professionals, many of the same theories and tenets apply. The industry must make some fundamental changes in the perception of its core product, and recognize that as a perishable, uniform item that is subject to the forces of supply and demand and the sale of which is difficult to forecast, rooms are as much like options and commodities as anything else. Once this change in perception occurs, stock market principles will find acceptance among revenue managers, general managers and owners in hotels across the world. READ MORE

"How can I maintain rates in a downward market, and how can I avoid a price war?" is a question that is asked over and over again, and although plenty of answers have been given over the last few years by many people, the industry never ceases to ponder this dilemma. By no means do I claim to know it all, however in my experience there are a couple of simple, and in most cases, obvious things to keep in mind that do help to avoid a price war and that do help to maintain rate levels. READ MORE

Pricing is more than a calculation: it is the process of monetizing your enterprise's value in the marketplace. It also helps you define your profitability, which has an affect on the rest of your hotel reflected in Revpar and GOP. At its core, good pricing strategy will enhance your enterprise's overall marketing and business strategy. READ MORE