Today’s savvy hotel groups are always on the prowl for new ways to generate additional revenue, and the thriving extended length accommodation division is making good on delivering exceptional value for its owners and guests.
It has become so profitable over the years, in fact, that nearly every major global hotel franchise has at least one extended length accommodation product underneath their umbrella of brands.
On the revenue management front, there are three critical areas where extended stay properties can use technology and the data it brings to take their revenue to new heights: business mix, inventory and pricing.
Better business mix
Better data brings better customer segmentation. For example, which individuals and groups are most desirable to the property and at what times of the year?
Knowing the time period between December and March, as an example, is the slowest for group business allows an extended length property to adjust their mix (perhaps with a keen eye on individual travelers) for optimal results.
Or what is a reasonable negotiated rate for company employees that displace transient guests?
Better data helps make better decisions – and it takes an advanced revenue management system to provide these answers and operating controls.
Strategic inventory allocation
Data becomes a true strategic asset when it improves forecasting, which is the fundamental basis for effective revenue optimization. The majority of today’s revenue management systems cannot properly forecast for long lengths of stay while also understanding the needs of short term transient guests.