hmsthailand.com

In the current Thai hotel market many operators are facing difficult times. After the Bangkok protests and unrest, other factors still not adding to today’s occupancy figures. While the TAT has announced the Thai Travel trade mart will be held in September this year, it might be all in vain to restore today’s trust in the Thai Hotel industry.

PATA is heavily criticizing Thai Airways in their attempt to lure more business to Thailand. Instead of discounting their tariffs, they have increased most of their rate for most of their flights. Hotels are being pushed to lower their rate as much as 50% to take any advantage of the promotional activities of the Royal Airliner. It all is not helping the hotel industry which is hurt deeply by these third party activities.

The only way out for hotels at this moment is to focus on the core principles of Revenue Management. Most hoteliers have already put their rates in a discount modes, to attract some business, but this can’t go on for ever. Hoteliers and revenue managers have to draw the line to which minimum they want to go and what is their objective. Clear targeting your activities will help you to sustain the discounting evolution and start building up your rate, step by step.

On every level revenue management have to be practiced. All department heads have to be informed about the new strategy in order to sustain a healthy Revpar. Discount policies should be fair and clear, all your suppliers should receive the same benefits to restore trust in your rate and product.

Besides strategic planning, software solutions will help revenue managers to preform successfully. Revenue management software is the solution to maintain control of the market, your competition and the rates your are setting in the market.

Tags: Hotel room revenue, Hotel sales planning, phuket market 2010, Recovery after the crisis, revenue management, yield management

This entry was posted on Saturday, June 12th, 2010 at 12:09 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.