Budget planning for the upcoming year is in full swing – and revenue managers play a key role. With the right data and analysis from the RMS (e.g., IDeaS), they can provide valuable insights and enhance the quality of the planning process.
1. Secure the Data Foundation
- Historical performance: Occupancy, ADR, RevPAR, segment mix.
- Pick-up analysis: How did bookings develop in the previous season?
- Channel performance: Direct bookings vs. OTAs, distribution costs.
- Competitive data: Market rates, STR/benchmarking.
2. Use Forecasts and Scenarios
- IDeaS provides automated forecasts on a daily, room class or segment basis.
- Explore different scenarios: Best Case, Base Case, Worst Case.
- Consider external factors: events, holidays, economic trends.
3. Review Pricing and Segment Strategy
- Rate categories: Which pricing structures worked, which didn’t?
- Segments: FIT, groups, corporate – how are they performing?
- Upselling & ancillary revenue: Integrate spa, F&B, MICE into the budget.
4. Plan for Opportunities and Risks
- Shifts in demand (e.g., bleisure, long-stay guests).
- Sustainability & green pricing as revenue drivers.
- Technology use: Automated reports save time and reduce errors.
5. Ensure Close Collaboration
Revenue management provides the data foundation – fine-tuning happens in close cooperation with sales, marketing, operations, and finance. Only aligned goals ensure realistic and achievable budgets.
Conclusion
Revenue managers are not just number suppliers; they are strategic partners in budget planning. With structured data input from the RMS, solid forecasts, and clear recommendations, they play a decisive role in ensuring the 2026 budget is not only planned but also attainable.
