Change in demand frequently brings with it new difficulties and opportunities. As a result, the importance of revenue optimization has recently been apparent across the hospitality industry.
FREMONT, CA: According to the hotel revenue management landscape 2019, more than 80 percent of hotels worldwide do not use sophisticated technology to implement smart pricing or revenue enhancement initiatives.
Make appropriate and confident decisions is difficult today. To forecast revenue and predict peak travel demand, hoteliers need access to many data and the right resources. Revenue management systems will be the solution for gaining market insights and making data-driven decisions to optimize revenue, especially in the post-COVID-19 future strategically.
Let's see some of the main reasons why the hospitality business should get involved with revenue management systems:
Multidimensional analysis for better market insights:
Intelligent pricing, which is at the heart of revenue management systems, relies on various parameters to sell inventory at the best price, including current occupancy, seasonality, lead time, weekday or weekend constraints, and so on. However, to assure occupancy in peak/low seasons, predictable/unpredictable patterns, and high/low demands, pricing brings together upsell strategies and market information.
Customized, intelligent pricing for higher occupancy:
New-age revenue management systems help obtain expertise through in-depth and comprehensive analysis to monitor business success. It helps assess the property's current market position and the number of improvements to determine the best course of action.
Knowledge of guest booking behavior:
Guests' booking patterns get revealed in the extensive data required for a viable revenue strategy. It displays which rooms they like, how early they book, and at what rates they book. It opens up a new way to use optimal pricing and target a specific segment at the correct fee for suitable dates. For example, higher occupancy and more room nights could result from a booking trend study and subsequent pricing strategy.
Accurate demand and occupancy forecasting:
Analyzing historical data from the previous year, month, peak season, and events allows for accurate forecasting. Forecasting demand and occupancy can help you make more accurate revenue predictions. Revenue management systems generate On-demand forecast reports. It enables hoteliers to plan for the following season, week, or month at reasonable rates through proper distribution channels.
Because revenue management solutions almost completely automate revenue optimization, hospitality staff can now focus on adding value to their visitors and engaging in critical service ideation and implementation to assure guest happiness.