With the advances in revenue management technology, analytics tools and forecasting capabilities, there has never been a better time for limited service hotels to optimize their revenue management potential. After all, what hotelier doesn’t want to maximize profits, streamline processes and strengthen their internal teams?
A centralized system can offer all that (and more!) for many limited service hotels. Here are three questions to consider when you explore implementing a centralized revenue management system:
1. What’s the best structure for a centralized team?
Onsite revenue managers and analysts tend to be cost-prohibitive in the limited service sector. A well-designed centralized team is one of the best approaches limited service hotels can adopt to cut costs and boost their bottom line. For those with a high degree of standardization across the portfolio, a centralized team is an investment that will pay dividends in many ways.
A two-tiered centralized team structure is most common for limited service budget hotels. That means the team consists of both junior and senior revenue management analysts. Junior members will be able to work with software systems and handle multiple hotels to determine daily availability and rate. Senior members focus on big picture pricing and budget objectives, as well as interdepartmental concerns. Keep in mind some brands assign troublesome properties to the most experienced analysts. Others focus on a regional structure. Find what works best for your hotel to succeed.
2. What are the reporting capabilities of the centralized team?
Reporting is a key component of any successful centralized revenue management structure but say goodbye to cumbersome spreadsheets — today’s commercial reporting expectations demand sophisticated analysis that’s captured and translated in a clear, concise way.