Tuesday, May 23, 2017

The New Hotel Revenue Model


The hospitality industry has existed, in one form or another, for centuries. The needs of weary travelers seeking shelter and rest have always been adequately met by innkeepers using time-tested methodology. However, the acceleration of change in the 21st century is forcing even one of the oldest of industries to move forward and progress. Hoteliers have traditionally based their industry around the unit of a room available and its price. As the industry is evolving, a new hotel revenue model is emerging. One which is based on the value of each customer, not just the accommodations in which they stay.

Over the course of the last two decades or so hotel revenue managers have attempted to maximize the profits for their hotels through supply and demand analysis. These efforts, enhanced by disruptive technologies and driven by hotel guest demands, are steadily moving the hospitality industry toward a guest-centric revenue model. The true valuation of each hotel guest is the future of hospitality and the industry’s new revenue model.

There is a growing expectation among travelers from their favorite hotel brands to know and anticipate their every preference or need. Valuable information is gathered on each guest at every step of the booking process and during the hotel stay. Hoteliers have access to the data required to effectively offer a truly customized hotel experience to each of their guests at all points of the stay. This data is collected during the course of everyday electronic interactions with guests, giving indications as to their preferences. A guest revenue profile can then be created around the potential revenue which can be earned from an individual customer. This information in turn can be utilized to ensure the right offers are made, in a timely fashion, to the right guests.

Revenue management optimization via cloud-based, software-as-a-service (SaaS) systems offers hotels nearly infinite data points to be applied to the revenue management equation. Such state-of-the-art software tools empower hoteliers with the provision of valuable customer data. This data is gathered, analyzed and delivered to revenue managers in order for them to have the relevant information they need to offer hotel inventory at the most optimal rate possible at any given moment.

Armed with these cloud technology-driven systems, hotels can offer truly personalized content to their web and mobile customers. Uniquely personalized content built around the tracking of the user's past viewing history, on the hotel website, apps and elsewhere on the internet. This can include past online purchases and any reviews which may have been written by the user, combined with demographic and purchase information available from any past hotel stays. Even the geographic location of the user is taken into account. Taken together, this data can result in a truly customized website experience for users, while enriching the guest revenue profile for hoteliers.

Inline Revenue Management®

The Above Property Inline Revenue Management® module allows real-time pricing and availability adjustments based on occupancy, seasonal trends, forecast, weather, booking pace and competitive data. Each transaction is processed in real-time through the Above Property proprietary pricing engine. Maximizing your revenue through careful management of forecasting, availability controls, groups, and distribution is crucial in today’s hospitality marketplace. The Above Property Inline Revenue Management® system gives you all the tools necessary to put your revenue management techniques and strategies to work. Operating in a fully distributed cloud environment, the Above Property Inline Revenue Management module can integrate with existing systems as well as take advantage of the full suite of complementary modules within the Above Property Travel Platform.

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