If you work in revenue management, chances are you’ve heard of terminology like price elasticity, unconstrained demand and personalization. These terms play an integral part in building the ideal revenue strategy that drives the most valuable business by helping hotels price, manage inventory and optimize their business mix. At the end of the day, however, these terms – and the data that drives them – still revolve around numbers.
And while numbers are very important for getting to the end revenue goal, how can hoteliers better maximize their profits while also curating guest experiences that drive loyalty? While a powerful forecast is important for developing revenue strategy, progressive hoteliers are rapidly looking to strengthen their ability to “futurecast.”
Going beyond the traditional forecast
Hotels traditionally forecast using a variety of numerically-based data sources, such as historical results and economic factors. These are all derived from numbers: the number of reservations booked over the same time last year, how well the market performed and where ADR finished each day. And while translating those numbers into a more profitable business strategy is certainly de rigueur, futurecasting is what can quickly turn your revenue strategy into the piece de resistance!
Futurecasting looks beyond the numerical side of big data to humanize the data so you can understand how and why you arrived at an outcome. It is the “why” that is paramount in marketing to guests better, building a powerful loyalty program, and steering consumers to book direct. Futurecasting builds upon forecasting by adding a layer of prescriptive analytics that looks into the future–to not just forecast a probable result–but to futurecast the optimal outcome.
The bridge between marketing & revenue management
It’s time for revenue management and marketing to stop working in isolation. By working together, the dynamic duo can build a cohesive and powerful marketing and revenue strategy that maximizes profit for hotels…and futurecasting is the practice that gets them there.