7 Fantastic Strategies to Boost Your Hotel Revenue Management
How does a hotel business model survive the often turbulent nature of customer demand, and how does one keep ahead of the curve and increase profit? The answer to these questions lies in a multifaceted approach to hotel revenue management, one which focuses on creating a customer-centric experience by optimising the potential of big data through hotel revenue management solutions.
#1: Unlocking the Potential of Big Data
Hotel room pricing is a perfect candidate for big data analytics due to the fluctuating nature of price-determinate criteria such as demand, time of year, and weather. Charging the right price is key to increasing revenue which is why property management systems (PMS) focus on automating the collection, sorting, and evaluation of such data.
This allows for the creation of a comprehensive forecast on changes in pricing, occupancy, and customer demands which in turn helps you predict demand for your hotel so you can set room prices and maximise your yield potential. By combining the features of your revenue management software with your staff’s attention to detail you will not only increase revenue per customer but also ensure that the customer will seek out your services in the future.
#2: Direct Booking Incentives
Online travel agencies (OTAs) allow the client to browse a list of different lodgings, compare prices, read customer reviews, and pick the one which best suits their needs and budget. While they are pivotal to your business’ successful marketing strategy OTA’s and traditional travelling agencies both charge you a commission for their services and put no special emphasis on pushing your product.
This arrangement is far from perfect for any hotelier but it doesn’t have to be. Equipping your site with its own booking engine cuts off the middleman and allows you to handle your own online bookings cost-free. Offering the customer direct booking incentives such as free room upgrades for using your hotel’s booking engine lets you skip OTA fees. Your booking engine also provides you with the opportunity to keep in touch with the customer via email subscriptions, further promoting your brand and helping you build a loyal customer base.
#3: Use Automation Solutions (PMS)
Modern property management systems (PMS) enable you to drive ever-increasing levels of efficiency by automating everything from room availability and rate management, to bookings of events and large groups, as well as collecting deposit payments. PMS allows your team to update and access critical guest information every step of the way, in correspondence of every guest’s individual needs.
The modern PMS goes even further by providing you with automated upselling suggestions such as room-upgrades, a flexible check-in timetable and a variety of other services which are e-mailed to the guest before arrival. Revenue and rate management is a key function in the property management system. It uses previously acquired data to focus on the trends which affect your average daily availability and improve occupancy. PMS further conveniences you by offering a cloud-based service which requires no additional IT maintenance.