In the previous post I spoke about the importance of the BAR Rate as a strategic lever to a hotel’s revenue management strategy; this spurred on some lively conversation and debate. Throughout the discussions the room product continuous;y came up; as it should. The room product definition at any hotel is one of the other key elements of a hotel’s revenue management strategy.
Defining what your room product is extremely important; in fact this should have been discussed prior to the post on BAR pricing. Why? Think about from this perspective. The definition of your room product lays out the foundation of your property’s sales, marketing and inventory management strategy; particularly when defining the components of each room that enhance the value of the product; ultimately outlining a matrix of room types that will be sold.
Here are 8 Rules to follow when reviewing your room products….
- Rule #1: Start with the assumption you have 1 room type.
- Rule #2: Add new room types only if you can clearly describe the value difference from your base room product.
- Rule #3: A room type can be defined by view (make it good), size (has to be noticeable to the eye) or true product difference in the FF&E.
- Rule #4: A room type is not a bed type, smoking preference or floor number.
- Rule #5: Write the description of the product for the consumer not for you.
- Rule #6: Have strong digital content to support the sale.
- Rule #7: Less is more; fewer room types with strong value will deliver higher RevPAR.
- Rule #8: Measure the ADR, Occupancy & RevPAR for each room type; are you receiving the expected value difference.
Whether it is a new build, major renovation or change of brand a hotel’s room types are reviewed many times through the life span of a property; there is only one person’s opinion that really matters. The CONSUMER…
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