In this fourth episode of Simon Says, Simon Lehmann talks with Alex and Annie about the next level of revenue management, which is performance. It’s one of Simon’s favourite topics, as him and the team at AJL Atelier work with many clients small and big on growing their businesses sustainably.
That was true before the pandemic, it’s even truer now in a more uncertain economic environment.
Here, Simon shares 5 top tips on how to do just that:
- You need to have a strategy and a plan – why are you in this business? Is this for an exit, is it a legacy, is it for your kids, etc.?
- You need the right people – you need to have the right human capital with you: it allows you to be flexible, and it’s also our biggest expenditure, so it’s crucial to do it right
- Adopt a balanced approach – making sure both the homeowners and the guests are happy is very important: focusing solely on one or the other cannot create sustainable profits
- You have the right technology – guest comms, owner portals, PMS, distribution, revenue management, home automation are all aspects where tech can add great value
- You have great financial hygiene – full control over your seasonality and cash flow, you understand your profits and costs components by heart and you have full visibility