This is a response to some feedback I received from industry colleagues regarding my previous post Transform the way you do. Also this is a special dedication to my dear friend Eugene Feklistov at Alila Villas Hadahaa.
My previous GM always told me, buddy we should have an “eclectic balance” in the geographic mix. He said if there are too many guests from one specific country or a region the rest of the clients will feel alienated. They are all jet-setters so they won’t appreciate being alienated, he added.
It wasn’t the easiest thing to achieve given the size of the resort and the traditional geographic markets that are more accessible to the destination. But my GM had a vision so I had to work towards realizing his dream and we did it.
It wasn’t magic but tough as a lot of time was spent to understand the business that has reached its maturity stage surrounded with fierce competition fighting to maintain market share. Some key areas that influenced the whole process include identifying the real key market segments, distribution channel implications and psychographic make-up of key segments.
Remember, it is all about creating and managing your demand the way you want. Keep your eyes open and be ready to close or open those “taps” at the right time. Some people might add a price factor to the same formula and call that revenue management but I say that is just Balance Management.
Well Said Nabeel.
It’s clearly visible that some of the Sales Exec’s at very Grand Hotels in the Maldives are mishandling the “Taps” which results to a Long Term Unresolvable Error in the Revenue Formula.
well thats what happens when the wrong people try operating the “Wrong tap”
Well Done Nabeel!
I clearly have nothing to say to this cox your way out of my league. I guess something we all have within our resorts but the name given to it different. HS your right as well”well thats what happens when the wrong people try operating the “Wrong tap”
”
Well..revenue management is more than what is noted here. Frequent unresolvable error occurs in the industry due to the fact that the industry is not using modern revenue management techniques such as yield management, which consider important factors such as RevPAR, Occupancy%. In addition, for a better revenue management, the revenue management team should also consider past statistics, capacity management, discount allocation and duration control. For a better targeted rate, the industry should also consider techniques such Harbert Formula in calculating the Rack Rate.
However, i must say Mr. Nabeel has highlighted an important unique issue to consider in managing the tourist demand for resorts in Maldives.