Modern all-inclusive resorts are transitioning from revenue management (RM) strategies based solely around optimizing package rates, to more comprehensive approaches that take ancillary revenue sources into account. And all-inclusive hotel owners increasingly recognize that harnessing the power of a robust RM technology solution is what they need to maximize revenue and achieve business success on both short- and long-term bases.
Why RM for All-inclusives is a Marathon
Relying on manual Revenue Management techniques is inefficient and often leads to flawed results and flawed decisions. A great example comes from past unsuccessful tracking of regrets and denials which fell prey to the inaccuracies of human error. Technology-based analytics removes this issue, allowing regret and denial data to be effectively used in developing long-term pricing strategies.
Today’s all-inclusive guests are growing accustomed to paying for ancillaries and upsells outside of their original package purchase. Good Revenue Managment technology segments customers at a granular level, revealing who is most likely to pay more for deluxe accommodations, or book extras such as access to exclusive areas and off-property cultural excursions. Further, as maximizing ancillary revenue becomes more valuable for the all-inclusive model, technology makes it easy to apply RM principles to all revenue streams, such as food and beverage, spa, and retail. By gaining a holistic view of total guest value, hoteliers can easily identify their most profitable guests and determine ideal segment mix positioning to optimize profits.
In the past, the all-inclusive industry relied on historical data to determine future demand, but technology now provides a much clearer view. By leveraging the powerful forecasting capabilities of RM software, all-inclusives can now incorporate data from internal, external, and real-time sources. Managers can make better-informed decisions across multiple guest segments concerning future demand, performance, and critical hotel operations.
