This is a YouTube video titled "Secrets of Revenue Management for 6x Returns!" containing a discussion from March 2015 focused on revenue management best practices for hoteliers. The conversation features two speakers: the host Avi Arya and guest Manav Khaira, who share insights on yield management, forecasting, distribution, and the role of consultants in optimizing hotel revenue.
Hi, good morning and welcome to another show, the Ask Avi Arya Show. A lot of people ask us about revenue management and what are the best practices in revenue management. I said, who better than an expert on revenue management? So it's a nice Saturday afternoon, winters in Delhi and I was just catching up with a friend, Manav Khaira here from Melbourne. And so I thought who better to answer these questions on what are the three best practices that you would suggest to hoteliers when they're looking at revenue management as a concept, as a principal.
Thanks, thanks for the introduction. So, three very simple, very simple principles in regards to revenue management. The first one is yield restrictions, yield management, so understanding the business in pricing, managing your TAs in that regard. The second one is forecasting. So understanding where the business is coming from in terms of segmentation, so per day over a calendar month or calendar year. And then the third one is distribution. So understanding where that business in the forecast is coming from. Is it coming from your OTA channels, is it coming from your GDS channels, is it coming from your photo direct channels?
So these are the three simple principles. Where do you think people go wrong? I mean when you analyze the hotel and its account and you see that there is some hidden revenue, where you can help them, where do you think they go wrong?
From what I've seen over my years in the industry, it's about the inventory, it's about ensuring you've got the right inventory control and also ensuring that you're looking at the business on an active basis. So not just leaving it once and.
Then forgetting about it.
You also got to keep on looking at the pick up trends, keep on looking at your pricing, understand what's happening in the market and then if you capitalize on those opportunities, that's where the.
Incremental revenues will come through. So what, this should be done every day? Absolutely. So ideally every day you look at all your channels, you look at where your business is coming from, what competitors are doing. Absolutely. And accordingly, price your hotels for the next year, every single day, more every.
Single day will be over short term. So looking at the, depending on the type of property you're situated in. So a, in the first, the one month, two months, so 30 to 60 days, that should be every day. And then at least once a month you should be looking at the full 365 days.
And therefore people use revenue management companies or consultants because this seems like a lot of work and at least small hotels to do them, do it on their own. Absolutely.
It's about getting the right people in who understand the know how of revenue management, let you focus on the operational aspect of business. And if the industry experts do for their support.
So what is the role of a consultant when he comes in, you know, works with the hotel, in this hotel, says, I don't have anybody in the house and a consultant has to help me. So I know that consultants can help them with reports. With reports and consulting.
Absolutely.
And then there is consulting with execution.
Yeah.
So how does that go?
So the execution part is about taking the taking the information, doing the analytical work to understand the business, where the business is, and then putting that into practice. SAM.
