Tips on Finding the Ideal Business Mix

#distributionmix #businessmix #Directbookings #OTA #RevenueManagement

The business mix basically means finding the ideal balance of different segmentations and using the channels effectively in your advantage. Your own direct website and channels are not sufficient to achieve your targets and therefore, you need to choose from hundreds of tour operators, travel agencies, large networks, reservation centres and OTAs. It may seem very tempting to hire a large number of partners and ensure a continuous flow of reservations, but this will mean losing control over profitability.

The primary aim of revenue management is selling the right product to the right customer at the right time for the right price and with the right pack.

Therefore; there are key strategies you need to apply to your property;

  • For days where you know you’re going to sell out or get close, the goal should be to incrementally raise rates as the date approaches to slow down bookings so you have rooms left all the way until that date when customers are happy to pay more for a room they really want.

  • Rates should be adjusted as much as possible from low to high leading up to each and every day based on the pace of bookings and projected demand

  • Paying attention to the competition, but not necessarily follow every move they make.

  • Instead of selling the rooms first come first serve basis, adopting more appropriate pricing decisions and filling your hotel with the most profitable mix of customers.

  • Systems and people must be in place at all times to react to changing demand and control inventory in a pro-active approach.

All of the above aiming to find the right balance in your distribution channels to ensure that you will have enough demand from each one of them to be able to filter and decide which is the most appropriate for the hotel.


You need to apply four key Strategic Revenue Management steps to succeed your goal;