Applying Revenue Management Principles

You can and should use all three strategies, rate adjustments, minimum booking values, and blackout dates at the same time. With the right Kennel Management Software, you can apply many of these changes automatically and with little input on your part.

Here’s an example of how we utilize Revenue Optimization at The Kennel at Arbor Lane during the summer.

• Rate Adjustment: We know that travel and pet boarding demand increases based on when school lets out for summer. From May 25th through July 31st, we’ve proactively increased our rates by 5%.
• Rate Adjustment: When capacity reaches 80% we automatically adjust our rates upward by 5%.
• Minimum Booking Value: During Memorial Day and July 4th, we’ve implemented a $150 minimum booking value to reserve occupancy for higher value reservations.
• Blackout Dates: Our least expensive boarding rooms (without extras or add-ons) are unavailable during the first week of summer break, July 4th through 7th, and the last week of July.

Hopefully by now you've read the basics of pricing, utilizing dynamic pricing, and revenue management techniques. In my next post, we dive into how you might handle common objections.

Learn more about the principles of revenue management by reading the rest of our Guide to Revenue Management.

BY
Chris Tilson