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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