Optimizing hotel revenues

HOTELS in Cagayan de Oro over the weekend were showing a modest occupancy figures higher than the December performance before the Typhoon Sendong disaster. With demands back to pre-recession levels, hoteliers are focusing on the best ways to capitalize and drive revenue. Occupancy alone has led to significant increase in revenue per available room in the city. Maintaining proper pricing procedures is an industry practice with no written rules but to optimize revenue potentials.
Night Clerks find it easy to print revenue reports from the day transaction. Managers can read it and be amused with the recovery prospects. But whether it can be of value is to talk about the why and how?
Local tourism industry practitioners have to shift from reactive to proactive and focus on items that are not really urgent but important.
Revenue management is a strategy now used by international hotel chains. Adjusting to more proactive approach is looking at weekly revenue meetings to make sure at least a great percentage is focused on finding solutions to overcome historical trends. Facilitating weekly meetings create fusions of the minds among team members. It’s collaborative not just one person speaking out.
Hotels revenue management scheme is not driven by competition but the team members should push for emotional pricing or setting rates depending on price movement of the hotels that double as a resort and the hotels located in the downtown areas which enjoys easy accessibility to transportations.
Business class hotels adjacent to malls or shopping centers enjoy the advantage for the walk-in short haul market. While sales and marketing executives are continuously surfing the net for the latest on-line booking placed by web based travel.com or government portals announcing conference schedules and out of town meetings.
Various discount schemes were made favorable to corporate business which has been supporting the industry.
Travel agencies that sells inbound destination like the Philippines in general and Cagayan de Oro in particular have different arrangements earning for the agency percentage of rebates for booking the business.
While airline companies integrate hotels and breakfast meals to their passage tickets as come-on promotions to sell the destinations in open ticket sales for local and the foreign tourist market.
Philippine Airlines have pioneered on tours. Their Palakbayan Tour Program has been in existence for the last decade earning patronage from the business community abroad.
For first time traveler to the islands destination, Palakbayan Tours simplify the booking arrangement for the traveler at a cost attractive to the budget.
On the other hand, Cebu Pacific Air has made their forwarding destinations attractive with their Go Hotels tie up. A program supported by the hotel properties owned by sister company, Robinson Land, which is into budget hotel venture.
The synergy improves travel convenience for business men and marketability of the low cost airline.
Not to be outdone with competition, Air Philippines Express, recently launched their Adven Tours in collaboration with the Philippine Hotel Reservations systems.
Pryce Plaza signed up for this tie-up to become the exclusive booking partner hotel of Air Phil Express in Cagayan de Oro City. Air Phil Adven Tours is anchored on the White Water Rafting attraction of the city which elevated the product to more international exposure.
A new player in the airline industry, Air Asia which now flies the Clark to Davao destination and soon the Asian cities in the BIMP region have more attractive travel packages tie up to their Red Planet Hotels Limited of Malaysia under the brand of Tune Hotel which is slowly making their presence in Clark, Manila, Cebu and Davao. Plan is also in the final stages for a Cagayan de Oro Tune Hotel venture for their regional emerging market.
Travel to Cagayan de Oro has a changing landscape with more wide bodied airline flying the route and new business class hotels coming up. Bench marking the business for growth comes with the pudding and with more economics driven front liners, produced by the local universities, let’s see who gets the share?

Ped T. Quiamjot is one of the brilliant columnists of a local newspaper in Cagayan de Oro City and currently the General Manager of Pryce Plaza Hotel Cagayan de Oro. His column talks on various issues and concerns affecting the business sector and tourism industry.