The year of Revenue Management for Independents

2006 was a year of building occupancies and getting heads in beds. All of our properties performed at record levels in regards to ADR, occupancy and total room revenues. This year there has been a swing in occupancies and we are seeing a 5 to 8 % decline, in occupancy, across our portfolio. We feel the main contributing factor is our midweek construction/corporate guest business is down.

Fortunately with the demand being high during special events there is a way to make up the difference. We have raised our daily rates by 10 to 15% on non special event dates. During special events we are driving our ADR in the $90 to $100 range. Overall revenues for 2007 versus 2006 are either the same or within 3% of last years totals.

Check what you competition is doing and price yourself either at or above them when demand is high! Be patient and confident in your pricing.