Given the day to day room capacity is limited and the demand uncertain, successful hotels adjust room rates on a daily basis. Rates may rise to avoid selling out in advance, or reverse may fall if demand drops. There are myriad options that also include competition’s pricing strategy, lead time analysis, segment mix, OTA visibility & productivity, GDS penetration etc.

  • Analytics is the main driver of your revenue performance
  • Different rates and segments are controlled analytically
  • Demand forecasts capture new business opportunities for specific customer demand patterns
  • Customers’ price elasticity affect your rates and your competitors’ rates

Praxis Methodology


Your Praxis Revenue Manager will research and understand your internal mechanisms that dictate your hotel's current revenue management capability. The Revenue Manager's key focus areas are:

 

Business Intelligence


An important evaluation stage of collecting performance and marketing data. The data is used to generate forecasts and identify periods of opportunity and need. It helps in assessing market segments and their past reaction to tactical and marketing strategies deployed. If your hotel subscribes to business intelligence reports i.e. Rate 360, STR Global etc., an evaluation is done to assess the extent to which these reports are utilised and incorporated in decision making.


Rate Structure & Pricing


Relates to the design of the rate structure and creation of the pricing structure for a business hotel or a resort. While these are repeated from year to year, competitors or change in buying behaviour is an important consideration for yearly pricing evaluation.

 
 

Demand Planning & Forecasting


The mechanism to forecast and determine the daily sell strategy by channel It continuously studies the pricing strategy deployed, measure success, deploy corrections if necessary and importantly audits competitors response to pricing changes.

Channel Management


Ensure visibility in every channel thereby ensuring brand’s presence across buyer’s preferences. Relates to the design of the rate structure and creation of the pricing structure for a business hotel or a resort. While these are repeated from year to year, competitors or change in buying behaviour is an important consideration for yearly pricing evaluation.

 
 

Upselling


Evaluate Rev Par improvement over and above opportunities presented in pricing, yielding and channel management development. A structured upselling business, suite and premium room product performance, food and beverage spend combined with other revenue opportunities such as Spa etc.

Revenue Management Success Stories



Soneva Jani, Maldives

Revenue Management by Praxis since resort opening in July 2017.

  • Complete assessment of the Maldives market
  • Thoughtful pricing and rate strategy with the key intent to achieve top RevPar status in the Luxury Market
  • Optimum channel distribution
  • Effective rate dynamism and critical pricing controls in the International market.
Outcome:
  1. Rate Leader in Maldives
  2. RevPar Status = #1 in Maldives


Our focus on bringing on board Praxis was to improve the standards of Revenue Management solutions. This has been achieved.

Sonu Shivdasani
Chairman and CEO


Neemrana Hotels

Revenue Management by Praxis since Jan 2016.

  • Create success in on-line distribution.
  • Move away from the earlier dependence on traditional Travel Agent and direct guest model.
  • Introduce rate dynamism.
Outcome:
  1. Unprecedented success in the heritage hotel segment.
  2. Improved Rev Par.
  3. Higher direct guest bookings.
  4. Improved week day business.


Praxis tribe – Passion for efficiency

Aman Nath
Founder

Make Praxis Revenue Management Work For You!


No matter that your hotel is large or small, is an independent hotel or a chain of hotels, Praxis Revenue Management practices can bring you profitable outcomes on a sustainable basis. Many hotel owners, large and small, have benefited already from Praxis' revenue management expertise. You can too.