Expectations for the hospitality industry grow stronger with every year – and the shelf life of how long a competitive offering is considered leading-edge before it becomes just another standard guest expectation has dramatically decreased over the recent years. For example, free Wi-Fi and complimentary happy hours – once competitive selling points for hotels – are no longer lucrative offerings for guests to come by.
Looking even further within the hospitality industry, revenue management has also seen similar shifts in its expectations. As its technology has steadily improved over the years, hoteliers around the world now rely heavily on its capabilities for strategic hotel pricing and assessing market demand. In fact, hotels are in a prime position to reap the benefits of a burst of new, but not altogether unsurprising, revenue management expectations.
From unlocking the opportunities of sophisticated analytics to employing innovative and flexible pricing strategies to gaining the maximum benefits of automation, hotels can anticipate a variety of fresh ways to boost their bottom line profits and increase their strategic revenue opportunities.
Rejecting the One-Size-Fits-All Pricing Approach
Automated revenue management technology has proven its value within the industry by providing a more effective use of inventory, increasing shoulder night performance and reducing quiet nights. It has also become a true game changer in helping hotel organizations establish and deploy the right rates to the right customers at the right time.
In fact, establishing a public pricing strategy is one of the top revenue management strategies that every hotel organization needs to create. For many hotels, this can be an overwhelming challenge since their property might be new to its market, facing strict parity commitments or searching for more effective pricing to bring in better revenue results.
Due to the uniqueness and diverse revenue goals of each individual property, hoteliers are recognizing how important it is to find the right automated pricing strategy that best suits their business needs. That means progressive hotels are rejecting standard one-size-fits-all pricing approaches in favor of evaluating multiple options to confidently select an approach that best complements their business mix and distribution technology.