Exponential pace.
That phrase can be used to describe the growth and diversification of the hotel industry.
Even though the market tends to focus on larger brands and the OTAs, small properties make up a very important segment.
Smaller hotels have to be especially creative in order to stay competitive.
In an era of online sales, last minute bookings, and meta search engines on the consumer side, how can smaller and/or independent hotels stay competitive even when resources are tight?
Independent property managers have to be comfortable in a variety of roles.
Hotel chains and large properties may have the ability to hire a dedicated revenue manager, a data analyst, or even an entire team devoted to the creation, management, and analysis of custom reports.
Since independent hotels often lack the budget for additional staffing, revenue management tends to get slopped on an existing employee’s plate. That person is forced to ramp up as quickly as possible, all while maintaining their heap of existing duties.
At best, this solution is inefficient. At worst, it’s overwhelming.
Smaller properties inherently face issues of size when it comes to two extremely valuable resources: available staff and available capital. They may not have a revenue management system in place at all, much less an expert to oversee the program.
The dangers are obvious. Not having a revenue management system in place means missed profit potential, which easily transcends the initial investment in a high quality software solution.
Luckily there are ways that independent properties can use business intelligence (BI) to maximize their profitability.
This article will examine how smaller hotels can leverage BI via their revenue management systems to compete with the giants.
Business Intelligence (BI): Don’t Just Analyze the Past, Predict the Future
At the most basic form, business intelligence systems give property management the ability to collate, and analyze internal/external sources of data to better understand where opportunities exist for increased revenue.
