Ahh, budget season… a time every hotelier knows all too well. It’s that annual crunch when departments scramble to justify their numbers, and finance teams work around the clock, pulling their hair out trying to predict next year’s revenue.
NB: This is an article from Plusgrade
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But what if this dreaded task felt less like guesswork and more like science?
That’s the promise of automation and data-driven upselling, with hospitality platforms like Plusgrade transforming how hotels manage budgets and make decisions. Along with driving incremental revenue, these platforms offer a clear view of demand patterns, market segments, seasonality, and other guest behaviors, helping hotels optimize revenue and budgeting.
Let’s look at how automation is turning budgeting from a yearly drag into a strategic opportunity.
Goodbye Spreadsheets, Hello Automation
If you’ve managed hotel budgets the old-fashioned way – think spreadsheets, calculators, and mugs of reheated coffee – automation might sound like a dream come true.
For modern hotels, that’s exactly what it is. Today’s tech solutions do the heavy lifting by collecting and analyzing real-time data on guest behavior, including often-overlooked revenue streams like room upgrades, early check-ins, hotel amenities, and other ancillaries.
Imagine having instant access to data that reveals not just global trends, but also demand by guest demographic, location, and preferred amenities. This level of data lets you predict revenue from upsells and premium services by understanding exactly when and where demand will peak, helping you optimize staffing, inventory, and pricing.
Interactions ➔ Revenue ➔ Insights
Room sales aren’t the only source of income for hotels. So, ask yourself: are you maximizing the revenue potential of every guest interaction? With data-driven upselling, you can be.
Hospitality solutions make it easy to send personalized, dynamic offers at key touchpoints before arrival, at check-in, and throughout the guest stay. Beyond generating additional revenue, these interactions create insights that reveal which ancillary services are most popular with different guest segments and when, leading to better forecasting.
By understanding the timing and type of offers that drive revenue, hotels can better allocate resources to support high-demand services. Every guest interaction becomes not just a revenue opportunity, but a data point that optimizes budgeting and revenue expectations.
Forecasting Like a Pro
Better data drives better decisions. This is especially true for budgeting and forecasting, where the right insights make all the difference. Automated upselling doesn’t just boost current revenue – it helps you predict future trends with precision.
With insights into guest spending patterns, you can anticipate specific services by segment, season, and guest type. Tracking ancillary revenue streams like spa services or room upgrades over time also helps you plan resources accordingly – whether it’s adjusting staffing levels, managing inventory, or preparing amenities to meet guest demand.
And with the added power of bidding data, hotels can identify demand and refine rate strategies for premium room categories and specific high-value attributes, especially during peak periods. Forecasting shifts from a reactive process to a proactive one, giving your revenue teams the data needed to support TRevPAR goals with confidence.
What It Means for Hotel Decision-Makers
If you’re a senior revenue leader, automation can streamline the budgeting process and drive meaningful revenue results as early as next season. Here’s how to get started.
- Implement Automation
Leverage a solution to automate upselling and capture incremental revenue at every guest touchpoint. It integrates seamlessly with existing PMS systems, making it easy to get started with minimal downtime or staff onboarding. - Use Data to Shape Revenue Strategies
The more you make offers, the more data you curate, the more you learn. With insights into which ancillary services are most popular by guest segment and season, you can start to refine rate strategies with data-backed precision. Bidding data can also reveal demand for premium services and add-ons, allowing you to set optimal pricing, especially during high-demand periods. - Plan Resources with Confidence
With automated upselling as part of your total revenue strategy, over time you’ll gain a clearer picture of how much ancillary revenue to expect each season. This data-driven approach allows you to allocate resources more efficiently and make smarter decisions, maximizing your hotel’s revenue potential.
The Future of Hotel Budgeting
Automation and data-driven upselling have ushered in a new era of hotel budgeting, where total revenue management decisions are made with confidence and backed by real-time data. By embracing technology, your hotel can radically improve operations, increase revenue, and, most importantly, offer a more personalized and satisfying guest experience.
It’s time to take a fresh approach to budget season – one that’s driven by data, powered by automation, and focused on the future.
