As the Christmas and New Year celebrations arrive, the peak season in the mountain comes round quickly, bringing a combination of opportunities and threats for hoteliers.

These dates represent a crucial moment in maximising profits, but it is just as easy to fall prey to strategical errors thar could compromise the economic results.

The scenario is almost always the same: many hoteliers have applied overly high starting rates, leaving them unchanged for too long, with the result that they end up with unsold rooms at the date.

Which strategies to adopt this year, to avoid repeating the same errors?

Remember that each decision, from pricing to selling modalities, may determine the success or failure of an entire season.

Over these years we have seen common mistakes that come back again and again: overly high initial rates, kept static for too long, or – in contrast – an excess of early sales at overly low prices.

It is time to face the Christmas period with a more aware approach, based on careful planning.

Lessons from the Past: High prices and empty rooms

Looking back, a common error has been to start with raised rates without adapting them to how demand really plays out.

Initial security often clashes with the behaviour of clients, increasingly prone to waiting till the last minute to book sempre.

Then there are those who have already filled a great deal of the hotel through group bookings or at FIT rates (negotiated in advance), but at a cost that is too low with respect to the potential of the period.

The results? Full rooms but slim margins, which do not do justice to the value of a peak season.

The illusion of high occupancy

Already full and happy. Seeing a full hotel is always cause for satisfaction, but real success can hardly be measured with occupancy alone.

The danger lies in settling for overly low rates, losing sight of the real objective: maximising the profit for each room.

And let’s not forget that, overall, mistakes made in peak season are often reflected in the low season.

Raised rates out of season leave gaps that are hard to fill, then leading to compensation by “selling off” rooms during the Christmas period.

This cycle must be broken through a more balanced, far-sighted strategy.

The Revenue Approach

To best face Christmas and New Year, it is fundamental to adopt a strategy based on data and flexibility.

The key for us is – of course – revenue management, allowing the optimisation of rates on the basis of the real demand and the dynamics of the market.

First of all, it is important to evaluate how many rooms have already been sold and at what rate.

Are there margins for a progressive rise?

Do not be afraid to increase the prices of the rooms still available.

Many clients book at the last minute, and those seeking a set-up near the date are bound to be willing to pay more.

It is fundamental not to lower the prices too early, but to wait for the peak in demand so as to optimise returns.

Demand for festivities is generally stable and strong: “at least” exploit this eventuality.

Observing the market and using advanced revenue management tools too will help you make decisions based on real data.

Limit the number of rooms sold at prices negotiated with tour operators and dedicate more space to OTA or direct sales, where price control is greater.

Prepare for the best moment

The peak in bookings for the Christmas period is generally recorded between late November and early December.

Yet over our 20 years’ experience in revenue management consulting we have noticed that bookings in this period also – especially – fall towards the date.

This is surely the ideal moment for raising prices.

Raising prices now may strike you as risky, but it could make the difference between a mediocre season and a successful one.

Look to the future

Christmas and New Year are not a goal, but a launching pad to build a lasting strategy.

The key to success lies in finding a balance between occupancy, rates, sales channels and perceived value.

Investing in revenue management consultation means not only maximising profits, but also improving service quality and guaranteeing a unique experience for your guests.

Strategical management, based on revenue logics, will allow you to fully embrace the opportunities of the festive period, guaranteeing sound economic results.

Be courageous and, above all, aware of the potential these festivities can offer.

This is the only way to transform a good season into a triumphant success.