Revenue management in hotels has come a long way since its inception in the late 1980s.
NB: This is an article from Demand Calendar
What started as a simple concept has become a sophisticated system for maximizing hotel revenue. Unfortunately, despite technological advancements and data analysis, many revenue managers have created an overly complicated process that can overwhelm others working in hotels.
Subscribe to our weekly newsletter and stay up to date
The benefits of simplicity
Teamwork improves decision-making
By simplifying the revenue management process, hotels can improve decision-making by fostering closer collaboration between revenue management, marketing, and sales teams. By working together, these teams can make more informed decisions based on a shared understanding of market trends and customer preferences. A simple revenue management process enables hotel managers to make more informed and timely decisions. With fewer variables, managers can focus on the most critical factors affecting revenue and make decisions quickly and confidently. In addition, by eliminating unnecessary complexity, hotels can identify the key drivers of revenue and make decisions based on data and insights rather than intuition or guesswork. As a result, better decision-making can lead to more accurate pricing strategies and better revenue performance.
Increased transparency makes information available
Simplifying the revenue management process can increase transparency by collecting and storing all data in one system and making the information available to all stakeholders. One system eliminates the need for the revenue manager to act as a gatekeeper of information, improving collaboration and communication between revenue managers and other departments within the hotel. With a centralized data system, hotels can ensure that all relevant information is easily accessible, leading to more informed decision-making and increased transparency throughout the organization. In addition, this can build trust and credibility with all stakeholders, including owners, top management, the commercial team, employees, and guests.
Enhanced customer experience
By simplifying the revenue management process, hotels can offer a more straightforward and consistent pricing structure that is easy for guests to understand. Easy-to-understand pricing can reduce guest frustration and confusion, leading to a more positive guest experience. A simple revenue management process can also allow hotels to offer more flexible and personalized pricing options, tailoring packages and promotions to individual guests and their preferences. By reducing complexity, hotels can also improve their ability to respond to market changes and offer more competitive pricing, enhancing their appeal to potential guests and retaining existing ones. Higher responsiveness can help to drive repeat business and build a loyal customer base.