What is Revenue Management?
It's a method to optimize the revenues and costs of your apartment rental. It enables you to effectively forecast the demand and supply and thus set the right accommodation prices. With this methodology, you'll be able to generate as much revenue as possible and you'll find out what's costing you business and what's profitable.
In this way, you will be able not only to determine the right pricing policy but also to apply solutions that will increase your income, reach the right target group and check how your offer looks like against the competition.
Is full occupancy always a success?
Although each of the apartment owners would always like to have the highest possible occupancy, not always a perfect result will bring the highest possible profit. Just answer the question - will the maximum number of guests in a hotel really be profitable if they pay only half the price you can expect to rent an apartment? No, that's why Revenue Management is so important - it will allow you not only to set the right pricing policy, but also to implement solutions that will encourage customers to take advantage of your offer. Maintaining adequate occupancy throughout the year will further reduce the costs associated with the operation of the apartment and the number of possible faults resulting from the wear and tear of the apartment.
What affects the price?
There are many solutions and elements that can affect the price and interest of customers. We have no influence on most of them, such as the weather, events in the city or prices of our competitors. Some of them we can change and stand out from other objects. We are talking here about, among others:
- Facilities - such as free Wi-Fi or free parking are already standard, it is worth betting on something more, such as free entry to the nearby swimming pool or sauna, discount on day trips offered by the local tourist office or the possibility to use the barbecue area.
- The equipment of the apartment - not only the right furniture or equipment is important here, the guest during their stay with us wants to feel better than at home. Our guests can make their stay more pleasant by such elements as good quality cosmetics, towels or other high-quality products such as coffee machines. If we have apartments in the mountains a good advantage will be room to store skis, and by the sea a screen on the equipment of the apartment.
- Tourist attractions - we can only influence the location of the apartment when buying it, but if our apartment is not located right next to the main attractions, it is worth to inform guests about other noteworthy places around our apartment. The city center is not always a tourist destination, sometimes Guests are more likely to choose an apartment located near the park, but with good connections to the center.
- Additional services - a comfortable solution may be to buy additional cleaning during the stay or breakfast straight to the apartment. Guests will also appreciate the discounts you offer them, in this case we can offer discounts on local attractions and restaurants or for further stays.
How to control the number of reservations?
The best is through cooperation with specialists in this field.
At RentPlanet we use our own Revenue Management activities, which allow us to comprehensively manage your rented properties. Not only do we take care of controlling the number of bookings, but we also set the optimal price (based on 150 factors!) and we will develop a strategy that will allow you to gain the highest possible rental income while generating the lowest possible costs - says Nikola Wojtyla Revenue Manager.
The effectiveness of our actions is evidenced by the fact that we are able to provide our partners with an average annual occupancy rate of 71% in 2019, and the annual revenue for the property owner is able to reach even 65k PLN.