Friday, February 27, 2015

Hospitality News For The Week Of 2/27/15

Booking Flights And Hotels: Online Agents Or Direct? - New York Times

 

Change is coming to the travel industry in the form of travelers becoming more likely to trust booking flights and hotels directly with the brand itself, rather than through OTA’s. This is reflected in the consolidation taking place among online travel agents. Expedia has been buying up their competitors the last few years, most recently Orbitz. Travelers are looking for more than merely good prices when planning their business trips and vacations, with customers increasingly booking on brand websites to gain various perks and loyalty rewards. Full Story Here:

 

STR: US results for week ending 21 February

 

The U.S. hotel industry continues its gains seen so far in this new year. For the week ending February 21, the industry’s key indicators were up across the board. Over the same period last year, occupancy was up .4 percent reaching 64 percent. Average daily rate climbed by 5.7 percent, ending at $117.60. Meanwhile, revenue per available room increased 6.2 percent attaining $75.26.  Full Story Here:

 

5 Things To Know About U.S. January Performance Data

 

Overall, the hotel industry is doing considerably well in 2015, thus far. The year kicked off with January seeing revenue per available room rising by 8.6 percent, boosted by average daily rate growing by 4.3 percent. These figures have risen for 59 months consecutively, with another projected 23 months of growth yet to come. The 54.4 percent occupancy rate for the month is the highest ever for a January. Full Story Here:

 

Orbitz/Expedia Deal Could Be Bad News For Hospitality Industry, Hopes For Its Agency Model

 

The recent announcement that Expedia is acquiring its competitor Orbitz may have a negative impact on the hospitality industry. With shrinking competition for the online travel agent giant Expedia, hotels may be forced into accepting less favorable terms in negotiations with OTA’s. This would drive down profit margins and in turn revenue for hotel chains. Full Story Here:

 

 


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Wednesday, February 25, 2015

U.S. Online Travel 2015 - Hotels - Part 1

Going into 2015, Phocuswright released their U.S. Online Travel Overview Fourteenth Edition. The Hotels & Lodging segment of the report captures a snapshot of a hospitality industry continuing its rise out of the malaise of the great recession. Catching fire in 2013, the industry’s recovery is expected to maintain its strong level of growth through the coming year.

 

The State Of Hospitality

This growth has been and will remain ahead of the overall U.S. economic recovery, ADR compared to GDP across the same time span. The hospitality rebound has been experienced to a lesser degree by smaller, budget and mid-priced hotel properties away from large cities, as those communities cope with a slower pace of recovery. However, higher priced and luxury hotel properties located throughout larger metropolitan areas have seen a rejuvenation in business travel, resulting in reduced supply. ADR showed a 4.4 percent increase in August of 2014, as compared to the previous year. As a result of less room inventory, combined increased demand of 4.3 percent.

Industry wide, the Phocuswright report expects accelerated growth for the U.S. hotel market will be experienced during the course of 2014 to 2016. There was a 6 percent room revenue growth rate in 2013 over 2012, reaching a total of over $122 billion for the year. The Phocuswright report cites, Smith Travel Research in predicted gains over 9 percent during the next two years. If these projections prove correct, U.S. hotels will be generating about $155 billion in revenue in 2016. This would amount to an astounding 34 percent increase when compared to 2012.

Online sales of hotel inventory are growing at an even faster rate than the rest of the industry. During 2013, hotels saw a 13 percent leap in online sales at over $42 billion. Double-digit growth in online sales is expected to continue through 2016. Phocuswright predicts that hotel bookings online will make up 38 percent of total sales in 2016. 

In the realm of hotel brand website sales, the industry’s push to improve functionality of and marketing via hotel websites is paying off. Hotel website sales experienced a gain of 11 percent in 2013, as reported by Phocuswright. The battle between hotel brand websites and online travel agencies for online inventory sales growth, however, clearly tips in favor of the OTA’s. OTA sales are growing at a significantly faster rate than brand sites, with a growth rate of a 15 percent increase in 2013, attaining $19.7 billion for the year. This growth will be sustained going forward to 2016 when it should reach over $28 billion.

In the second part of this series we will look further into the impact of OTA’s on the hotel industry and hoteliers efforts to stem the tide. 


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Monday, February 23, 2015

Bitcoin Technology and Travel

Like Bitcoin or not, the technology behind it and travel have an intersection point in the not so distant future.  What I am really talking about is blockchain technology.

Blockchain technology allows for a public ledger of all transactions.  Maintenance of the ledger is performed by the network of communicating nodes or computers.

 

What does this mean for Travel?

Blockchain technology and the decentralization it brings can eliminate $100s of millions of dollars in travel related fees that exist today on a global basis. There are clearly Business to Consumer (B2C) applications and we read about those ventures today.  It is the Business-to-Business (B2B) that will have significant impact on the travel industry.

The real value of blockchain technology will be the adoption to the travel commission reconciliation process.  Today, there is a complex sequence of reconciliation between hotel, airline, car, tour, and cruise to commissionable agents.  Currency exchange, cross border taxation, and consolidation all trigger an average of 3%-5% fee the agent must pay in order to receive payment.  This is a valuable service, but one that can be simplified by leveraging blockchain technology.

The game changer reference the travel industry is that there is no central authority or intermediary.  Intermediaries charge fees for the collection, aggregation and conversion of currencies.  These fees are now minimized leveraging this technology.

So, while Bitcoin’s future is unknown, the technology it uses to operate will travel forward.


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Friday, February 20, 2015

Hospitality News For The Week Of 2/20/15

Hooked On Mobile: The Milestones Your Hotel Has To Meet In 2015

The technology research firm Gartner projects mobile phone sales will reach 1.95 billion for 2015. The shear number of smartphone users around the world means hoteliers need to ensure the needs and expectations of their customers are being adequately met. In order to do so hotels need to convert their website to a responsive design so it seamlessly transition between device types, enable mobile payments, and provide a mobile hotel app. Full Story Here:

 

US hotel results for week ending 7 February

In three key measurements, U.S. hotels experienced clear gains for the week ending February 7 over the same week last year. Occupancy was up by 1.9 percent to 57.5 percent. Average daily rate gained 3.5 percent to reach $113.55 to end the week. Revenue per available room rose a solid 5.5 percent, attaining the level of $65.32 for the week. Full Story Here:

 

A Look At Online Hotel Bookings

According to figures provided by Phocuswright and put together in this informative infographic, online hotel bookings are clearly increasing. In 2014 the U.S. market received 36 percent of its total bookings via online channels. This represents an increase as indicated in the infographic, as was for all markets across the globe. OTA’s are the leading online source for gross bookings in European and Asian-Pacific markets. However, in the U.S. hotel websites provide 52 percent of total online bookings. Full Story Here:

 

How Hotels are Capitalizing on What Business Travelers Value Most

The importance for hotels to assuage the business traveler is made abundantly clear in figures from the U.S. Travel Association report, as noted in a Huffington Post story. Both domestic and international business travelers spent $266.5 billion in U.S. hotels during 2013. That figure totals nearly one third of all travel money spent in the U.S. for the year. Additionally, a report released by American Express Global Business Travel, business travelers stay in a hotel an average of 21 to 30 times annually. Full Story Here:

 


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Thursday, February 19, 2015

Protecting Customer Information Through Tokenization

When a customer gives a hotel their credit or debit card, either through an online hotel reservation system or directly, they don’t want to have to worry about a criminal getting this information. Customers want to feel secure knowing that the hotel has a system in place to protect their private information. Recently, some retail companies have had credit card and personal information hacked by criminals. Hotels aren’t always safe from these attacks either.  Back in September of 2014, a hotel chain based out of California had customer credit and debit card information stolen by cyber hackers. So what is a hotel or any company to do about this problem?

There is a process called tokenization that can protect this important information by replacing the credit/debit card or other personal information with randomly generated tokens or symbols.  Our Above Property system has the ability to interface to various companies that offer secure payment solutions.  One such company is MerchantLink, which has a cost-effective tokenization solution called TransactionVault.   

These types of secure payment solutions create and issue an encrypted token which is then stored in a hotel’s system in lieu of credit card information.  If the original payment card data were to be stored, as it is with some hotels currently, it becomes an attractive target for criminals.  Through the tokenization process, credit card information is never stored in the hotel’s system.

So if you’re a hotelier, or any business for that matter, it’s your responsibility to protect your guests’ or clients’ credit, debit or personal information and using a tokenization solution is the most effective way to protect your guests.


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Monday, February 16, 2015

Beware the Spike

In today's Agile development environment it is not uncommon for teams to create special User Stories called Spikes.  Spikes are used to gain the necessary knowledge needed to do the requested work and to reduce risk and uncertainty.  The term Spike was originally coined in Extreme Programming (XP) by Kent Black.

At Above Property, it is not uncommon for us to use a Spike story when we are exploring a new technology or determining the direction for a new business process.

Spike Stories are subject to the same rules of any other story.  They have a short, simple description from the perspective of the person desiring the functionality and explicit acceptance criteria.  They are pointed and placed into the iteration just like any other story.

For us, the result of a Spike story is usually a well-written and pointed User Story or a series of User Stories.  Once the Spike has been placed in an iteration, we attack it just like any other Story.

While there are valid times and places to use Spikes, be careful.  Using a Spike inappropriately can hinder your team’s ability to work on the right tasks at the right time.

I have observed that new and immature adopters to Agile will sometimes create an excessive number of Spike stories.  Resist this temptation and embrace the agility that the methodology provides.   If your team needs everything lined up before they commit, then invest in some coaching and help them along.  A zealous and active Product Owner that grooms the backlog can greatly reduce the number of Spike Stories.

 

Here’s a list of when NOT to use a Spike:

  • to clarify minor details
  • as a crutch because there is still some ambiguity in how you will do the work
  • for something you could figure out with a couple of quick discussions and a white board

 

Good luck!

 

 


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Thursday, February 12, 2015

Hotel Revenue Management Optimization - 4

Effectively Implementing Revenue Management Optimization For Hotels Continued

The art and science of hotel revenue management optimization is centered around hoteliers gaining the ability to correctly forecast future room rates in any given time period and market segment. We have seen how categorizing a hotel’s customer base into various market segments, examining historical rate history, and looking into future bookings all are crucial elements in the revenue management formula. However, the results would be of diminished value without taking into account a few more factors.

 

Monitoring The Competition

Keeping track of the prices that your hotel’s competition set is selling their rooms for, is another necessary piece of the revenue management puzzle. Without this valuable information a hotel property could never have the opportunity to stand apart, price wise, from its crowded field of competitors. This is critical in the process of not only attaining new customers, but also satisfying past hotel guests to entice them to return and book again. Successful revenue management optimization requires constant awareness of where and how a hotel property fits into its set of surrounding competition.                         

 

Managing Sales Channels

It is absolutely imperative for hotel properties to offer rooms across the online channels where their market segments are most likely to be shopping for hotels. Hotels should strive to have their properties and attendant rates showcased on as many distribution outlets as possible. Any channel a property is absent from will lose those potential customers. But there are associated costs involved, as high as 30 percent or more on some online distribution outlets. Therefore the online channel choices are a balancing act between the increased exposure for a hotel property and the bottom line revenues gained from each sale a particular outlet makes.

Despite the decreased revenue a hotel receives from each sale made by outside distribution channels, it has become a known fact that a robust online travel agency presence leads to increased direct bookings. Being listed on as many sales channels as possible greatly raises a hotel’s exposure level, almost like being displayed loudly on a billboard. It is unquestionably essential for hotels to not only monitor their competition’s prices, but their own rates across the entire distribution network.

Tracking so much data is another point where a comprehensive hotel revenue management software system is key. Technology solutions are the most effective means of managing any hotel property’s revenue flow, leading to the achievement of the highest gains. Software designed to automate the complex hotel revenue management equation can not only streamline the entire process, but analyze results to produce even greater returns for hoteliers in the future.

Above Property provides hoteliers with a highly innovative solution to the revenue management optimization equation. A component of the Above Property Travel Solution set, Inline Revenue Management adjusts pricing and availability to allow for revenue optimization in real-time.

Traditional revenue management systems have become a bit stale in only allowing up to two updates daily. The Above Property solution can handle transactions at lightning speed and is completely scalable, allowing for as many adjustments as desired. The adjustments to pricing and availability are all based on occupancy, seasonal trends, forecast, weather, booking pace, and competitive data that are all processed in real-time with every transaction. The Above Property Travel Solution set is both modular and compatible with all existing Property Management Systems and Central Reservation Systems.

 

 


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Wednesday, February 11, 2015

Hospitality News For The Week Of 2/6/15

Japan will open world’s first hotel entirely operated by robots this summer

The world’s first hotel staffed by robots is set to open on July 17 in Sasebo, Japan. In an effort to reduce costs and increase efficiency, robots will be utilized in labor intensive rolls such as housekeeping, porters, and front desk staff. The goal for this hotel is to have nearly 90 percent of all the hotel staffing requirements filled by androids in the future. The property will feature other cutting edge technology as well. Guests will not need room keys, since the hotel will have facial recognition technology to allow room access. Full Story Here:

 

$7.3 billion wasted annually on Wi-Fi and roaming charges

Travel expenses of business travelers across the U.S. are driven up and efficiency is reduced significantly by the high Wi-Fi charges and poor connections provided by hotels. Some hotel properties charge up to $26 for a day’s worth of Internet connection. Many business travelers have needed to forego important meetings, missed deadlines, and been impacted personally by significant lack of family contact as a result of the situation. Some hotels are leading the move to change by offering free high speed connections to their customers. Full Story Here:

 

Low Oil Prices: Upside Potential for the Lodging Industry 

The recent downward pressure on oil prices should create a significant upward trend for the lodging industry in the U.S. PKF Hospitality Research has predicted room rates will continue to increase for the fifth consecutive year. Figures also indicate growth in profitability of over double digits again in 2015. Most of the country will benefit from the slide in wholesale oil prices, with the exception of the oil producing central U.S. Full Story Here:

 

February Profits Per Room Rise 1.7% For U.S. Hoteliers

Figures released by trivago hotel price indices, indicate that hotel rates across 25 popular destinations in the U.S. are $179.18 in February, rising from $170.96 the previous month. Over the previous year average daily rate is ahead by 3.8 percent. Last month that figure was only 3.2 percent. Predictions are for the U.S. online room rates to rise by 5.1 percent during the course of 2015. Full Story Here:

 


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Monday, February 9, 2015

Can't Live With Them, Can't Live Without Them - CRSs That Is...

The Vital Power Plant

The technological center of a hotel chain is the Central Reservation System or CRS.  It is the keeper of all reservations, modifications, and cancellations.  This system then communicates with the Property Management System or PMS to pass critical guest information to a particular property.  Over the years, subsequent systems such as CRM, loyalty, and financials have surrounded themselves around the CRS.

 

When did it all start?

The first Central Reservation System came online in 1965 and is still in production today.  The average age of major CRSs today is anywhere from 25-49 years old.  These pre-internet systems should be commended for their ability to function in the internet age, but fall significantly short in their ability to quickly react to today’s demanding business requirements.  

 

What happened?

As a plethora of systems attached themselves to the CRS, it caused the ability to advance and improve the system to become hampered.  A changes to the core system triggered more changes to the attached systems.  Traditional waterfall application development, risk aversion, and lack of a service based architecture, drove decades of functionality lock in and complexity.  Eventually, the goal was to look for other ways to bring features and functions forward, but do not touch the core.  Today, every major hotel chain is operating a legacy based system and trying to figure out how to modernize their systems without destabilizing the running business.  

 

Where does this leave us? 

The capacity demands placed on current CRS’s continues to grow.  For years, throwing more hardware at the issue often abated the onslaught of availability requests.  Caching solutions were also put in place.   Often times, throughout the day, CRS performance degrades and availability requests get turned away.  Data models of yesterday are very rigid and require significant application work to make changes.  As reservations come through various retail channels, the belief is the data store has to be centralized to maintain inventory control.  Until now.

 

Distributed Reservations Systems

"All the forces in the world are not so powerful as an idea whose time has come." - Victor Hugo 

Cloud based technologies now provide the ability to run the application and data store in a distributed configuration.  The future of reservation technology resides in this configuration.  From a global perspective, inventory can be dispersed and rule based verifications can occur as inventory is managed globally within milliseconds.  Above Property has built such a platform.  A platform that has been benchmarked at 100,000 tps with 50 ms response times.  Distributed Reservations Systems is an idea whose time is now….  


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Friday, February 6, 2015

Hotel Revenue Management Optimization - 3

Effectively Implementing Revenue Management Optimization For Hotels

 

To remain competitive today, it is important for hotels to implement a strategy for revenue management optimization. This applies to properties of all sizes, whether chain or independent. For any hotel property to derive a specific price point, on a given day, for any individual customer, the collection and analysis of an immense amount of data is required. These tasks are most efficiently realized through the utilization of hotel revenue management software. For hoteliers to sell hotel rooms at the optimal price, asking and answering a few key questions is a necessity.

 

1. Who is staying at my hotel? (Segmenting Markets)

Determiningprecisely who is staying at your hotel and when is a vital first step in the process of revenue management optimization. Guests should be categorized by business or leisure, whether they are group customers or individual, etc. It is entirely up to the hotelier how many distinct market segments should be tracked for their property.  However, each segment must be unique in a way that makes them distinctive from the rest.

 

2.  What did they pay? (History)

To maximize the room rates across the span of an entire year it is indispensable to track past rate histories. Historical rate results, for the last year at minimum, must be considered as part of the equation.  Patterns will be revealed which can be useful in planning for the future. Average daily rates and number of rooms sold for each date, and by market segment is invaluable data for establishing a rate strategy going forward.

 

3. How far in advance did they book? (Booking Pace)

Looking into the future is also an essential element to a revenue manager. This is the amount of reservations that have been booked for any specific future date. This, combined with past historical rate data, gives an indication if demand for your property’s rooms is up or down. From this vantage point decisions can be made regarding whether sales initiatives should be implemented if demand is down, or room allocation should be put into action if demand is stronger.

Future rate forecasting is at the core of any truly effective hotel revenue management optimization program. The goal is to achieve the proper balance to entice future guests to book as early as possible. As any given time approaches, rates can easily be adjusted according to supply and demand.

Above Property provides hoteliers with a highly innovative solution to the revenue management optimization equation. A component of the Above Property Travel Solution set, Inline Revenue Management adjusts pricing and availability to allow for revenue optimization in real-time.

Traditional revenue management systems have become a bit stale in only allowing up to two updates daily. The Above Property solution can handle transactions at lightning speed and is completely scalable, allowing for as many adjustments as desired. The adjustments to pricing and availability are all based on occupancy, seasonal trends, forecast, weather, booking pace, and competitive data that are all processed in real-time with every transaction. The Above Property Travel Solution set is both modular and compatible with all existing Property Management Systems and Central Reservation Systems. In the last part of this series we will see how other factors, such as, monitoring the competition and the management of sales channels, complete the revenue management optimization equation.




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Wednesday, February 4, 2015

Hotel Revenue Management Optimization - 2

Why Hotel Revenue Management Optimization?

 

The peak and valley nature of the hospitality industry is extremely conducive to revenue management techniques. This applies to both smaller, independent properties and large chains equally. All hotels share the combination of high fixed costs balanced against low marginal costs. The cost of the property itself and all expenses associated with it are high, but the cost of gaining each new hotel guest is relatively low. This gives any hotel a degree of latitude in setting their rate structures.

Revenue management optimization techniques will therefore help even the smallest of hotels capitalize on the flexibility that allows them to sell rooms for the maximum rate possible on any given day. This is why revenue management is so crucial to all segments of the hospitality industry, no matter the size. Most smaller properties cannot afford a dedicated revenue management specialist, however the investment in software designed to assist in that regard could be most beneficial to them.

Effective revenue management optimization can also benefit hotels in ways beyond the implementation of a more profitable rate structure, although that should be reason enough. Revenue management empowers hotel properties to ensure their rates are not only profitable, but competitive within their market as well. The research required for revenue management provides valuable market intelligence in the form of a clearer picture of the hotel’s customer base and their expectations. This offers hotels the opportunity to get to better know their guests. The data extracted can reveal to hoteliers exactly what are their property’s market segments and point out new segments for future growth. All of this information will additionally lead to enhanced coordination between the efforts of sales and marketing with their service counterparts who interact directly with hotel guests.

The hospitality industry is built around servicing the needs and desires of their guests. Revenue management optimization is a tool which will enable hoteliers to better anticipate and meet the wishes of their customers.

Above Property provides hoteliers with a highly innovative solution to the revenue management optimization equation. A component of the Above Property Travel Solution set, Inline Revenue Management adjusts pricing and availability to allow for revenue optimization in real-time.

Traditional revenue management systems have become a bit stale in only allowing up to two updates daily. The Above Property solution can handle transactions at lightning speed and is completely scalable, allowing for as many adjustments as desired. The adjustments to pricing and availability are all based on occupancy, seasonal trends, forecast, weather, booking pace, and competitive data that are all processed in real-time with every transaction. The Above Property Travel Solution set is both modular and compatible with all existing Property Management Systems and Central Reservation Systems. In the third part of this series we will explore courses of action to best utilize revenue management optimization in a hospitality setting.


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Tuesday, February 3, 2015

Hospitality News For The Week Of 1/30/15

Hotels Kick off the New Year with Strong Revenue Performance Driven by Average Daily Rate Growth

 

Major hotel markets across North America saw strong rate growth going into 2015, according to TravelClick’s “North American Hospitality Review”. Growth of 4.5 percent is expected in average daily rate, in turn indicating revenue per available room will be strong in 2015 as well. The year to year 12 month outlook points toward overall committed occupancy growth at the rate of 2.8 percent. Full Story Here:

 

Global Hospitality Trends Report Suggests Healthy 2015 for Industry

A report released by the audit firm EY, indicates the hospitality industry is a strong engine of economic growth worldwide and should continue gains in 2015. The report called “Global hospitality insights: Top thoughts for 2015”, states that the hospitality industry accounts for 266 million jobs around the world and makes up 9.5 percent of global gross domestic product. The report goes on to state strong growth is expected industrywide during 2015 despite geopolitical instability, health related issues, and the inconsistency of economic growth globally. Full Story Here:

 

 

US Hotel Occupancy Up 2.9% to 57.1% Week Ending January 24TH - 2015

U.S. hotels experienced a rise in occupancy rate during the week ending 1/24/15 of 2.9 percent. Average daily rate was up by 5.1 percent at $114.42. Revenue per available room finished the week at $65.32, which amounts to a rise of 8.1 percent. Three major markets led the way by experiencing double digit growth in average daily rate, San Francisco/San Mateo at +37.4 percent to $173.45; Phoenix at +12.1 percent to $144.85; and Miami/Hialeah at +11.6 percent to $240.60. Full Story Here:

 

 

Most popular and trending cities: where travelers went in 2014

Hotels.com released statistics showing how American travelers are increasingly making Mexico their destination of choice. Cancun/Riviera Maya has now surpassed Montreal, Hong Kong ,Tokyo, and Barcelona to become the sixth most visited international destination by Americans. Other Mexican cities saw significant increases in the numbers of American travelers visiting those destinations as well. London remains the favorite international destination for U.S. travelers. Full Story Here:

 




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Monday, February 2, 2015

Hotel Revenue Management Optimization - 1

What Is Hotel Revenue Management Optimization?

 

Long practiced by the airline industry since the 1980’s, revenue management has since become increasingly utilized by the hospitality industry as well. In the case of hotels, revenue management is a tool designed to maximize revenue earned by any given room. It accomplishes this goal by charging the highest room rate that any particular type of customer in question would be willing to pay during a specific time frame. Ultimately, the goal is to book every room for the right price, at the right time, to the right customer.

Using the basic economics of supply and demand as a foundation to gain the optimal rate for each guest everyday, revenue management is a great fit for the hospitality industry. Hotels only have a fixed number of rooms available at each property. Each of those rooms can be thought of as being a perishable commodity, almost like fruits and vegetables at a supermarket. If a room goes unsold on a given day that revenue cannot be made up again, it is lost forever.

Another factor in play is the varying priorities of different types of travelers. Market segmentation is the decisive first step in hotel revenue management. For example, a business traveler needs to be able to book last minute hotel stays, while at the same time have the flexibility to cancel without facing large penalties. The leisure traveler, on the other hand may be more concerned with price, the amenities and features of a hotel room, and whether a particular room has a view. Vacationers are willing to pay more for the things which will enhance their experience and the enjoyment of their time for relaxation. There are various ways a hotel can segment their customer base, all based on what best suits the revenue goals of each individual property.

Additionally, seasonal fluctuations in demand play a crucial role in hotel revenue management. Obviously, during times of historically high demand, room rates can be raised in order to capitalize on that particular time frame’s level of demand. When the spike is over, rates can be lowered to help increase room utilization in off times. In this way, even a single independent hotel practices revenue management, even if they don’t realize the fact.

Revenue management for hotels entails compiling large amounts of data against complicated formulas to extract the maximum rate possible for a given customer, on a given day. Smaller, independent hotels may not feel the need to practice extensive revenue management. However, any size hotel can clearly benefit from these techniques.

Above Property provides hoteliers with a highly innovative solution to the revenue management optimization equation. A component of the Above Property Travel Solution set, Inline Revenue Management, adjusts pricing and availability to allow for revenue optimization in real-time.

Traditional revenue management systems have become a bit stale in only allowing up to one or two updates daily. The Above Property solution can handle transactions at lightning speed and is completely scalable, allowing real-time  pricing and inventory adjustments. The adjustments to pricing and availability are all based on occupancy, seasonal trends, forecast, weather, booking pace, and competitive data that are all processed in real-time with every transaction. The Above Property Travel Solution set is both modular and compatible with all existing Property Management Systems and Central Reservation Systems. In the next part in this series we see why hotel revenue management is important for the entire hospitality industry.

 

 


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