Why are revenues not as expected?
As an owner or manager of a tourist accommodation, it is necessary to maintain a clear medium- and long-term vision regarding sales management. Therefore, the inability to reach a certain level of income can jeopardize the achievement of both strategic and professional objectives. Improving them thus becomes essential for the viability, competitiveness, and success of your accommodation. In this way, we understand that if you do not reach the set goals, your main concern becomes the revenue section.
Main Issues
There is a wide range of reasons why your business income may not be meeting expectations. However, we will mention the most common ones below:
Competition: High competition means that customers have more options to choose from, which can make it difficult for your accommodation to stand out. If competitors offer better prices, additional services, or a superior experience, they are likely to attract more customers, thus reducing your potential income. Additionally, competition can put pressure on lowering prices, which can reduce the operating margin if not managed properly. This point is especially critical as it compromises both the quality of the product and its profitability.
Revenue Management Policy: The lack or inefficiency of a revenue management strategy can negatively impact your income. As a result, it will lead to setting incorrect rates, limiting the maximization of your income. Therefore, a solid revenue management strategy is crucial to optimize occupancy, prices, and profitability, thus ensuring effective revenue growth for your accommodation.
Digitalization Process: The digitalization of your accommodation is essential to remain competitive in today's market. On one hand, it will allow you to improve operational efficiency by automating processes such as check-in or reservation management. On the other hand, it will facilitate the user experience by offering personalized services, which will lead to increased customer satisfaction and loyalty. Likewise, implementing the technological factor allows you to collect and analyse a larger set of data to make the right decision at the right time.
Online Reputation and Brand Presence: If both elements, reputation or brand image, are negative, they can directly affect the number of bookings and, therefore, the increase in sales. Currently, customers consult the opinions of other guests before booking, and unfavourable reviews can dissuade them. Similarly, an inefficient corporate image that does not convey your philosophy or values will not resolve any doubts the customer may have, thus limiting the effect of the investments made in Marketing. For this reason, it becomes key to actively manage reputation and brand image to maximize customer attraction and the potential income of the accommodation.
First and foremost: analyse
Therefore, before making any decisions, we recommend gathering all information regarding the commercial area: what is being done, what assets you have, how you select information, and which of it you use, etc. This way, it will allow you to have a complete view of the health status of your commercial strategy.
Hiring our commercial audit is a smart investment to identify and prioritize the various issues that are preventing your accommodation from improving its revenue section. At the same time, our experience will help you implement effective and personalized solutions to optimize sales and maximize your profitability.
