Weekly Insights. September 7, 2024

The role of total revenue management in a hotel profitability strategy

The global hotel industry is firmly positioned in an era of normalized growth levels. That means to achieve greater profits, hotel owners and operators need to explore every possible revenue stream while also working to manage expenses. 

The starting point is a strategy built on a total performance picture—one that understands both the top and bottom lines as well as the circular relationship between the two. Fortunately, 35 years of historical profitability data presents obvious trends that inform hoteliers working to generate more financial gains.  

Soft Brands – A third alternative

Soft brands are a hybrid between independent and core-branded properties. In general, soft branded hotels enjoy the benefits of the marketing programs and reservation systems of the core brands, but have greater flexibility regarding facilities, services, and operating standards. Soft brands are frequently the choice of owners of hotels that have a historical reputation and identity of their own.

Dynamic pricing: Maximizing revenue in the hotel industry

Dynamic pricing can be a contentious topic. Consumers often view it as an exploitative pricing strategy in which brands try to charge the highest possible price for their products or services. For example, in the fast-food industry, the introduction of dynamic pricing has gone down like a lead balloon.

However, despite the backlash some brands have received, there are industries where dynamic pricing, while not necessarily welcomed, is generally accepted. The airline industry is one example, with airlines charging more for passenger tickets when demand for travel to a particular destination is high.

The beginner’s guide to hotel market intelligence

In an industry where the slightest misstep can lead to missed opportunities, understanding market intelligence is essential to strategic revenue management. So, what exactly is hotel market intelligence, and how can it transform your approach to hotel revenue management?

What is yield management in the hotel industry: An in-depth guide to maximizing revenue

In this practical guide, we explore all the benefits, key elements, and strategies to equip your team to maximize your hotel’s revenue.

Understanding EBITDAR: A vital metric for hotel profitability

In the hotel industry, where operational costs and rental expenses can significantly impact profitability, traditional financial metrics often fall short in giving a true picture of a hotel’s performance. This is where EBITDAR (Earnings Before Interest, Taxes, Depreciation, Amortization, and Restructuring or Rent costs) comes into play. At Catala Consulting, we believe that understanding and leveraging EBITDAR can provide valuable insights into your hotel’s financial health and help you make more informed decisions.

Hotel blog: Ideas and strategies for engaging content

For the hotel, a blog helps boost its online visibility, improving search engine rankings by using relevant keywords and regularly updated content. It also allows the hotel to show off its unique features, connect more personally with guests, and establish itself as a trusted source of travel information. Ultimately, a well-maintained hotel blog helps drive more traffic to the website and encourages bookings.

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