Maximizing revenue proves to be a challenging task even for those experienced hoteliers who know all the ins and outs of their business.
It’s not only about management and trying out different rates across different channels. It’s not just about getting direct reservations and predicting the future. Since there are so many details behind this term, technology, as always, is there to help us. Here’s your technological ABC of maximizing revenue.
A – Step up your Distribution Game
Even though OTAs provide you with a lot of bookings, generally helping increase your income, they come at a steep price. The high commission rates OTAs usually charge, make it difficult to maximize the revenue. Room allotments is yet another downside of dealing with the biggest booking platforms.
As those OTAs still deliver a large part of most hotels’ reservations, it is often simply too difficult to reject them overnight. Instead, you should consider making the most of the technology they offer. Both Booking.com and Expedia – the two monopolists (or duopolists to be precise) of the market – have their own set of tools for optimizing revenue.
BookingSuite and Expedia Powered Technology Suite provide useful data which can be turned into smarter room pricing and maximized yield. Thanks to the software you get intel on the demand on particular dates. Increasing prices on high-demand days, and lowering rates on low-demand days is a good way to start. Daily rate advice from OTAs should make revenue management easier for you.
Under no circumstances, however, utilizing the most popular OTAs should be your only activity in the distribution field. Diversifying your distribution channels is essential in maximizing revenue. Don’t be afraid to try out different booking platforms, as there are some alternatives you might not have heard about.
The Dutch start-up, Bidroom.com offers bookings without commission or any other fees. Additionally, they don’t allot rooms and allow hotels to embed a direct link to their accommodation’s website on the platform. The only requirement is the discount for guests (at least 5% off other OTAs prices).
