The role of a Revenue Manager has changed over the years. It no longer means manually trawling through reports and historical data to forecast future demand.
NB: This is an article from Mews
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Instead, the fast-paced industry means opportunities have passed by the time data has been analyzed. And hotels still relying on manual methods are probably unaware just how much money they’re leaving on the table.
To keep up with the market, many Revenue Managers have turned to cutting-edge revenue management systems. But without real-time optimization they can only go so far. Today, updating rates as often as possible is key to staying ahead of the competition and maximizing revenue.
Enter Real Time Optimization (RTO)…
Let’s say we have two hotels: Hotel A and Hotel B. The hotels are a similar size and both get most of their business from events at the local stadium, making them direct competitors. The only difference is that Hotel A uses Atomize’s real-time price optimization (RTO) while Hotel B updates their rates manually.
When a world-famous singer announces a surprise concert next month, demand for hotels skyrockets immediately. Luckily for Hotel A, Atomize RTO picked up on this new event and upped the room rates in real time.
But Hotel B wasn’t as fast. It took them several hours to update their rates manually and several bookings were made at lower rates. This meant they lost out on significant revenue, while Hotel A made the most of this surprise concert from the moment it was announced.
Of course, not every scenario will be the same as this. However, without real-time optimization, you could be leaving money on the table like Hotel B.
“I’m happy we decided to use Atomize as our revenue management system. Without it, we would have missed many opportunities to maximize our rates and generate much-needed revenue.” Jonathan Anthamatten, General Manager at EMA House
How Atomize real-time optimization works
Atomize, one of Revenue Hub‘s Expert Partners, is constantly reviewing data from a hotel’s PMS to monitor pick-up rates, reservations and cancellations. It factors in everything from pricing hierarchy to other room types and the impact on shoulder days. It also keeps an eye on competitors, search trends and local holidays. It uses this data to calculate the optimal rate for the next 365 days.
With Atomize RTO, any rate recommendations go live immediately, meaning you don’t need to wait and can respond to any market changes immediately.
