Today, guest behaviours and booking patterns are changing so rapidly that having a robust revenue management strategy is not a question of choice. It is imperative for hoteliers to follow holistic revenue maximising practices to realise dramatic impact on their profitability.
Revenue management is the process that lets a hotel dynamically adjust its inventory pricing based on sales trends, past data, and other forecasts. As a result, hoteliers can derive maximal value from every sale and boost their bottom line. When effective revenue management processes are set right from the early stages of a hotel’s lifecycle, it informs everyone about the hotel’s direction and what measures the group should collectively take to achieve that goal. This is where a fully integrated, cloud-enabled property management system can help hoteliers accomplish that goal.
ADVANTAGES OF CLOUD-BASED PMS
Hotels can get the right pricing for maximum profitability by observing guest trends and demand. They can earn more revenue from the same inventory set. Prediction of high and low periods is possible by studying and evaluating variables such as season, occupancy levels in an area, guest type, competitor pricing, room features, and amenities that affect pricing. With this, a hotel can safely increase prices during periods of high occupancy and decrease them during periods of lower occupancy. This type of dynamic pricing can be used to determine rates based on the current and historic demand.
Making the most of existing bookings by upselling:
Once the hotel has made a reservation, regardless of the channel from where the booking has come, there’s always room for upsells. An advanced cloud-based PMS can track and record guest information and history within the system, which is immensely useful for multi-property groups to serve the guests when they happen to visit the property again.
Drive more profitability:
Though increased occupancy is directly proportional to increased revenue, targeting high occupancy can be a mistake. To be profitable, hotels should focus on Average Daily Rate (ADR) and RevPAR, and not on maximising occupancy.
In today’s social media era, feedback provided by guests is visible to everyone. Unfortunately, negative feedback attracts more attention than positive feedback. This can severely impact a hotel’s credibility. A good PMS enables the hotel to track guest preferences every time they visit the property and also empower the hotel with reputation management tools.
A cloud-based PMS can improve a hotel’s online presence and create or manage reservations coming from multiple channels. It helps the hotel owner to get a clear picture of the profit breakdown and account for opportunity costs. OTAs provide hotels with a powerful distribution platform and connect them to a specific set of guests. Once the hotel manager knows the opportunity costs associated with each of the online channels, he can make informed decisions and discover the right blend of distribution channels for higher profitability. Any hotel that is not embracing these revenue management practices is setting itself up for failure.
By choosing the right technology, hoteliers can streamline operations, increase their revenues and cut costs.
Hotelogix is a cloud-based PMS that provides hotel revenue managers with the right technologies designed for optimising hotel operations and increasing revenue.