Two of the most important tools for revenue managers are pick-up and pace. They are a necessary foundation to understanding how to deal with changes in demand for your property.
Let’s remember how they work:
Model 1: Average Pickup
We look at the number of room-nights we have on the books for a particular date in the future. We then compare this to what we had on the books for comparable dates, at the same point in the booking-window.
For example, 45 days before arrival we normally have 40 room-nights on the books while for the night 45 days into the future we have only 32 room-nights OTB.
Model 2: Pace Based Pickup
Here we look at how many room-nights we’ve added to the books over a period of time. So we look at speed rather than the total.
For example, during January over the last few years we normally add 200 room-nights for February. This January we added 235 room-nights.
Very clunky and unwieldy in practice
We need to understand how pick-up and pace but it’s not easy to put into practice. Should we look at them from the perspective of months, weeks, days? How do we build out these models? What is the best reference-point to compare against? When and how do we take action?
These are hard questions to answer and almost every revenue manager has their own secrets. I will leave you with the complexity of a typical pick-up spreadsheet. There must be a way of simplifying this. Next post will cover some suggestions for how to improve things.