Is it better to sell every room at a cheap rate, or raise rates and leave some rooms empty? ADR (Average Daily Rate) vs. Occupancy. More revenue management videos and info at my updated site: hotelrevenueman.com/.
Пікірлер: 86
@gundulagelato45003 жыл бұрын
Don't miss the opportunity to get more additional revenue in food & beverage, parking, wellness and many more services with higher occupancy.
@patriciaposton14 жыл бұрын
Very good presentation. Now I know why many motels and hotels be half empty. They are making more money like that. Good to know Great information. Cleared up many misconceptions about the profitability of the hospitality industry.
@mikewilliams49476 жыл бұрын
Excellent, easy to understand and watch. Great job thank you!
@mdarsika84 жыл бұрын
However the fact is sometime when we put higher rate (10% mark up probably) the pick up is almost shut down. (Bali Hotel)
@emresemerci19494 жыл бұрын
Thank you for the video. As a Tourism management student, these kind of videos helping me a lot.
@hotelrevenueman57082 жыл бұрын
Thanks, Emre!
@ccuny14 жыл бұрын
Perfect intro to the subject for me. Thank you so much. Liked and subbed.
@hotelrevenueman57082 жыл бұрын
Thanks, Cricri!
@dinku483 жыл бұрын
Perfectly elaborated this revenue management strategy.
@hotelrevenueman57083 жыл бұрын
Thanks, Dhrumil!
@adapthospitality31543 жыл бұрын
Insightfull This is generally how it works. However, in some certain situations as an operator, you are obliged to go with the first scenario, at the end of the day it is much better to work a lot & get less profit, at least you have with what to cover your expenses, rather to experience losses. Some bad decisions let the hotel breath till passing the moments of crisis Revenue management is evolving; the same parameters doesn’t apply all the time in all situations
@Kate-vs9jp3 жыл бұрын
What a great content! Very easy to understand. 👍🏼
@hotelrevenueman57082 жыл бұрын
Thanks, Kate!
@MyNaturalism5 жыл бұрын
Thank you from across the globe!
@hotelrevenueman57085 жыл бұрын
You're welcome!
@tifftaff66725 жыл бұрын
Thank you so much! Really helped me out and cleared my mind!!
@hotelrevenueman57082 жыл бұрын
Great! Thanks for taking the time to comment.
@jashankhokhar12 жыл бұрын
It helped me in doing my college assignment.Thanks allot.
@bobt.saunders62536 жыл бұрын
Just what I have been looking for.
@hotelrevenueman57082 жыл бұрын
Great! Thanks for the comment, Bob.
@jbb36044 жыл бұрын
This was extremely helpful. Low occupancy makes you feel like your doing something wrong. I'm so worried to increase my rates and in turn decrease my occupancy.
@hotelrevenueman57084 жыл бұрын
Reach out to me and I'll give you an hour of my time for free to see if there are some opportunities at your property that you might be passing up. Chris@HotelRevenueMan.com (this is my youtube channel).
@musiqnote9392 жыл бұрын
Excellent illustration!
@ChrisHunterVideos2 жыл бұрын
Thank you for your kind words and encouragement!
@user-lb1ig2yb3j6 жыл бұрын
Beautiful explanation
@hotelrevenueman57082 жыл бұрын
Thanks!
@zummliller4 жыл бұрын
Excellent sir, thank you.
@hotelrevenueman57082 жыл бұрын
Thanks, Joe!
@harinagendran5 жыл бұрын
Thank you its been very helpful
@hotelrevenueman57082 жыл бұрын
Thank you!
@stgeo5721 Жыл бұрын
Awesome tips!
@keith88593 жыл бұрын
this is clear to see, busy hotel doesnt mean to be profitable one, more guests staying in more rooms would make more depreciation in facilities and amenities, even though i think there actually is benefit, that is for marketing, many guests come there will be more worth of mouth which is good for hotel reputation and reviews
@Hotelcourse Жыл бұрын
Great explanation 👍
@hotelrevenueman5708 Жыл бұрын
Thanks!
@noel89nuyda3 жыл бұрын
This is awesome!
@hotelrevenueman57082 жыл бұрын
Thanks!
@MrRminaya2 жыл бұрын
How would I determine if revenue growth is attributed to rate increase or occupancy increase? - Thank you
@Jiggz95 жыл бұрын
this is great! However, this only helps if you have played around with price per room to see what people are willing to pay.
@hotelrevenueman57085 жыл бұрын
Jigar, you are correct. Many hoteliers are not changing their rates to see what guests are willing to pay, and that's a BIG mistake. When a hotel sells out the market is saying "Those rooms are a great deal. I'll take them all!" This means people would have been willing to pay more. How much more? The only way to know is to run continual experiments and to have a system of recording those experiments so that you can use that information to make future decisions. This is what I teach hoteliers how to do. Thanks for the comment!
@caonidaya25094 жыл бұрын
im sales assitant in jinling this helps me alot for writing a shittin report
@elisayadarola79983 жыл бұрын
Hi!! Any plans of speaking of USALI? xoxo
@RiddhiKapkoti Жыл бұрын
Nice. But its depand on meal plan and typ3 of property also. If a beach hotel where they don't have many restaurants nearby and guest booked on B&B, the working will change.
@aziza032 жыл бұрын
very helpful video. but I have a question, if we make all the weeks as same as friday schedule is it going to be same. i mean what if we do $110 for all the weekdays and weekends. Does our business going to be the same every day?
@hotelrevenueman57082 жыл бұрын
Generally your weekdays would be basically empty, then you would get some bookings on the weekend. This is because generally weekdays have less demand, so you have to lower rates to get bookings. Here's a video I made that shows what happened at a real hotel who had all days priced the same. kzfaq.info/get/bejne/m9eDnbOQutyZoac.html
@aziza032 жыл бұрын
@@hotelrevenueman5708 thank you so much!!!
@theguyinthehelmet18755 жыл бұрын
Great videos, Chris! Tried emailing you but the Chris-email came back not found. I resend though to the Ask-email.
@hotelrevenueman57085 жыл бұрын
Thanks for reaching out. If your email hasn't gotten through yet, try Chris@HotelRevenueMan.com
@PotencyfunctionАй бұрын
Yes but how to write at 8 level ?
@ganiebanu3 ай бұрын
What about the extra income from inhouse guests from FnB and other sources?
@hotelrevenueman57082 ай бұрын
That could be factored in to an example. For this video it's just focusing on the manipulation of room rates. Thanks for commenting!
@monicashanelucero33052 жыл бұрын
how to get the room revenue first to get the ADR?
@hotelrevenueman57082 жыл бұрын
This will be in the hotel's computer system (PMS - Property Management System). Look for the revenue, then look for the number of room nights sold for the same time period. Divide the revenue by the number of room night to get the ADR.
@deantan40804 жыл бұрын
So what is the insight? I charge 110 dollars everyday?
@hotelrevenueman57084 жыл бұрын
Dean, I'll show you a few simple principles that will increase your revenue significantly. Email me at Chris@HotelRevenueMan.com and we'll schedule a free 1 hour call. I'll show you how to lower your rates on days of low demand to increase bookings, and how to raise your rates during times of high demand to increase profit. Thanks for the comment!
@stevensunderland83454 жыл бұрын
How do I make the jump from front desk to revenue management.
@hotelrevenueman57084 жыл бұрын
Check with your manager and ask if you can start helping with some tasks related to OTAs. This might be reconciling weekly Expedia bills, to double checking that inventory and rates are right on Booking.com. Take the initiative to take some less desirable tasks off someone else's plate, then when someone is needed to do some substantial revenue management tasks, you'll be the go-to employee. Good luck! You can also feel free to tell them about this youtube channel. Let them know that there might be some free information that could be a benefit to the hotel.
@PotencyfunctionАй бұрын
You first need to learn about the holistic education. There not a "jump" term in business academic educated person, there is not a doubt that you are an idiot, to be in the front desk you need to have a costumer service and communication skills while you are showing that you put questions that are not related with this field. So make the jump at motherfuking hell and comment there with illiterates at your level . Okay Steve Retard?
@Jiggz97 жыл бұрын
Wouldn't operating cost increase as occupancy also increases? Because now you are using more wages to clean rooms, guests might eat more breakfast, and more utilities are being used.....
@Jiggz97 жыл бұрын
Fixed costs wouldn't change but variable costs would certainly increase as occupancy increases
@hotelrevenueman57087 жыл бұрын
You're exactly correct.
@anitashrestha7015 жыл бұрын
Great
@nicolasmartin76616 жыл бұрын
I need you in my team...now
@hotelrevenueman57085 жыл бұрын
Send me an email and I'll be happy to correspond with you. You can find contact info at www.HotelRevenueMan.com. Thanks for the comment!
@soyedgar18312 жыл бұрын
Do someone knows a good book to learn this?
@PotencyfunctionАй бұрын
You need Hospitality Academy for this specific subject. You do not learn that in 8 grade anyways.
@cooperronnie19083 жыл бұрын
Wt is market cap ?
@PotencyfunctionАй бұрын
Go and make research for your self instead to intoxicate us with stupid questions.
@Drummakann6 жыл бұрын
You are not getting in the cost of your empty room
@goforce40576 жыл бұрын
George Losekann right as the profit was calculated on the occupied rooms basic. But empty rooms get theire cost too. This makes confusion
@hotelrevenueman57085 жыл бұрын
@@goforce4057 You and George are right. My most popular video deals with how much it costs to put someone in a room and at the 2:20 mark I reference the fact that the most expensive cost to hotels is rooms that set empty. But, there is a point where you are getting so little for a room that it's better to have a room sit empty. You can see the video here: kzfaq.info/get/bejne/e9Cpf8aout-ypHk.html. Let me know what you think. Thanks for your comments!
@david-barna4 жыл бұрын
But what about our cows?
@hotelrevenueman57082 жыл бұрын
HAHAHA!
@samerbeirut43755 жыл бұрын
That is good for beginners. But in real life you should consider RevPar and not heads in beds
@ninokharebava98215 жыл бұрын
What is RevPar?
@hotelrevenueman57085 жыл бұрын
@@ninokharebava9821 Nino, check my videos. I made a video explaining what RevPAR is and how to calculate and use it.
@mwm6991 Жыл бұрын
😍😍😍
@pmt68975 жыл бұрын
PlazaYou should come to Ecuador at Wyndham Sail Hotel in Manta. These guys don't know anything about hotel revenue managment they are in the RED everyday. Pretty much broke because nobody here knows anything about the hotel business.
@hotelrevenueman57085 жыл бұрын
I have multiple international clients. Have them email me at Chris@HotelRevenueMan.com and I'll correspond with them. Thanks for the comment!
@alanhall815410 ай бұрын
This video you show $20 expense per rented room. Shouldn’t have been $20 per room (100 rooms). Because of fixed cost like electricity, water, tv cable etc.
@noemequiampao73612 ай бұрын
Hello sir, helpful videis! Im struggling on forecasting😊, May I email you sir please