Investing in the right hotel technology like the most suitable Revenue Management Software for your property can make the difference between reaching your business goals or not.
NB: This is an article from Atomize, one of our Expert Partners
There are several alternatives in the market and for a hotelier, it can be hard to distinguish them apart and understand the differences and identify the ones that will generate the business outcomes for you.
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One of our recent customers Hotel Unplugged Rotterdam recently shifted to Atomize from another RMS that didn’t help them to reach their goals in terms of optimizing their RGI, the RMS they previously used was rather optimized for volume and to increase occupancy.
The hotel’s manager, Joanne Uland recently made the decision to move over to Atomize based on the fact that our pricing algorithm optimizes revenue and RGI in order to deliver a more profitable business and make sure you keep track of the competitive landscape.
A quick intro to Hotel Unplugged
Set in beautiful Rotterdam in the Netherlands, Hotel Unplugged is a modern hotel for millennials and the new kind of metropolitan traveler. The hotel offers modern, and stylish rooms with a focus on exceptionally comfortable beds, unique designs of the bathroom, and technology. Everything in the rooms is easily controlled by the guest’s mobile phone. This is in line with Unpluggeds ambition to create a technology-driven experience. By offering a tech-savvy and mobile stay, guests are able to create meaningful connections with the people and places they visit. By avoiding the traditional thinking in hospitality, Hotel Unplugged gives their guests the freedom of choosing their own definition of a carefree stay.
From driving volume to optimizing revenue and growing market share
The main goal of an RMS is to optimize revenue and save time as you trust a system to automatically adjust your rates. By accessing the most recent market demand data and offering data-driven pricing suggestions, a high-performing revenue management system allows you to maximize your revenue all year round.
For Joanne and his team at Hotel Unplugged, this was also the main reason for investing in an RMS in the first place but unfortunately, the first supplier didn’t meet the expectations, the automation performance was poor and could only be switched on or off, no fine-tuning to make it more user friendly or efficient was offered.
For the operational team at Hotel Unplugged, it is essential to capture as many revenue opportunities as possible from available demand and at the same time boost RevPAR and ADR. To do that in parallel requires a sophisticated pricing algorithm that considers several data streams at once and understands how those should be weight-balanced to generate the best outcome in their specific market, in other words, optimize for the highest RGI. Atomize is built to achieve just this by having access to comp set data, forward-looking demand data, and current performance data (such as inventory, pick-ups, cancellations, and reservations) from your PMS.
Complete overview of market demand data and comp set in real time
Besides that, the previous RMS didn’t take comp set data into consideration at all which is mandatory for a hotel like Hotel Unplugged since they have some smaller competitive hotels in the direct neighborhood that outpaced them the latest year. Using an RMS that does not offer competitor data can almost be compared to participating in a race with your eyes blindfolded, you do not know how you are performing, what you are performing against, and where you will end up.
Another main advantage Joanne appreciates with Atomize is the real-time price optimization, a unique function that will make sure his hotels take advantage of even the slightest changes in the market to maximize the property’s revenue. By automatically retrieving and analyzing internal and external data, Atomize optimizes and updates the room rates in real time to ensure they are always one step ahead of the competition when it comes to securing market share and maximizing rates during shifting demand.
