Revenue Management for Youth Hostels

• Adopt a healthy market segmentation for the hotel
• Assist with budgeting and develop a forecasting model adapted to the market segments
• Increase revenue by stimulating demand and use existing demand for the destination
• Push forward the hotel on potential distribution channels to enlarge the demand
• Optimize direct sales and distribution via website and phone
• Structure the pricing management
• Set strategic pricing in terms of public and negotiated rates
• Handle all Revenue management tasks on a daily, weekly and monthly basis

Rock Global will study the main competitors of the hotel to assess their price positioning in relation to their products offering. Rock Global will build a report comparing the strengths and weaknesses of the main competitors and the hotel. The report will aim at building the Price – Value relationship that the hotel can provide in front of its main competitors.

Rock Global will benchmark and compare the pricing strategies of the main competitors and the hotel. The study will look at the public prices but will also try to pinpoint negotiated rates such as corporate rates. The study will look at a year period: day by day pricing by length of stay. The benchmarking will show how the hotel is priced competitively and create or revise the pricing grid.

Rock Global will evaluate the distribution of the main competitors: GDS, IDSs and off line through mystery calls. The study will look at promotion management, length of stay pricing per channels. The study will also look at the distribution management of the hotel, inventory availability management, rates availability management in periods of low to high demand. The benchmark study will look at the competitive strengths and weaknesses of the hotel and present an action plan, with a primary focus to contract the right new distribution channels.

Upon the benchmarking studies, Rock Global will review the existing pricing grid or build a new one and recommend pricing strategies to stimulate the demand. Both public prices and negotiated rates with multiple length of stay will be assessed and recommended. Pricing will be recommended per period of demand: low to high periods. Negotiated corporate rates will be reviewed in relation to the production and corporate accounts. The sales team input will be needed.

Rock Global will review the demand calendar, or create one, and analyze strength of demand day by day per period (with or without events), in view of day by day rate strategies.

Rock Global will build market segmentation for the hotel and create a forecasting model to ensure that existing demand for each individual segment will be targeted most effectively in terms of marketing, sales and pricing strategies.

Rock Global will develop monthly rate strategy sheets with the following objectives:

• Day by day pricing strategy for one year will be shown (price value per length of stays day by day will be recommended)
• Pricing strategy per channels of distribution
• Yield strategies with L.O.S. restrictions on peak periods

Rock Global will also review or build the rate loading and the rate management through all electronic distribution channels to ensure that all prices including corporate rates are correctly shown and bookable. Two meetings are planned before the start of implementation:

• Meeting at the start of the project with first phase of assessment and meeting with the team
• Final presentation meeting with the pricing strategies and tools

Rock Global will develop the implementation of the suggested action plan. As the main challenges based on current occupancies seem distribution and pricing oriented Rock Global will focus on getting the required results. This includes contracting online and offline distribution channels.