Revenue management provides the peace of mind to hoteliers that their products are placed at the right place, at the right time and at the right price! Simply stating, revenue management is the art of disciplined analytics predicting consumer behaviour, along with optimisation of product availability. And as you all must know, all this is done making sure that the revenue growth gets maximised. Therefore, revenue management software has to be interactive, integrated, dynamic and user friendly to say the least. Data collection, segmentation, forecasting, optimisation and finally re-evaluation, all form the process of achieving this maximised growth.
Smart Revenue Management Strategies
A successful hotelier has to be different than its competitors. This is possible if there is a competitive advantage or may be a product that is different and better than what others have, or they don't have access to. Competitive advantage and smart revenue management strategies go hand in hand for a business to succeed. Some of the strategies that make revenue management smart are:
- ROI, the top priority - Productivity of the hotel depends on deep insights, with quarterly or monthly review of performance with each demand partner. Key points here that can be considered include lead time pattern and booking window for the partners, room type with rate plans sold and Average Daily Rate (ADR) vs. room revenue produced.
- More than just automation - A smart revenue manager not only settles for automated distribution but incorporates decisions based on cost of distribution, occupancy, the target net Average Daily Rate (ADR) etc.
- Quality not quantity - Data is there not just for the sake of volume but to make important decisions. Decision-making might be ineffective due to large quantities of data. An intelligent revenue manager knows that the garbage that comes in has to move out.
- Demand mapping with demand forecasting - Access to expected patterns of business and typical customers is provided to hoteliers by distribution partners. Along with demand forecasting, identifying newer markets and demand partners will bring in more profits and business. You must know this!
- Track and respond to reviews - Smart revenue management at its core must focus on tracking the value perception and what people think of their hotel as compared to the competitors. Responding to the reviews is of utmost importance to maximise the revenue potential of the business.
Revenue management will soon take a big leap and enter the new age of big and highly competitive data driven world. A smart revenue manager must know this and start taking steps in the right direction so as to leave the competitors behind. Some of the aforementioned strategies might just help and come to rescue!
Placing of the products at the right place, at the right time and at the right price is of utmost importance for hoteliers. Making sure that the revenue growth gets maximised, hoteliers must focus on data collection, segmentation, forecasting, optimisation and finally re-evaluation. Smart revenue management strategies lead to competitive advantage. Some of these strategies include giving ROI the top priority, focusing on automated distribution with quality and not the quantity. Demand mapping, demand forecasting, identifying new markets etc. will bring in more profits. Along with these, keeping a track of reviews and responding to them is very crucial. A smart revenue manager must take steps in the right direction to leave the competitors behind.