Hotels have a very dynamic supply and demand cycle. To be able to gain maximum revenue from the limited room inventory, the decision to sell the right room at the right price to the right client becomes paramount.
Revenue Management helps hoteliers plan pricing strategies based on availability and demand to achieve a desirable financial result. To make an effective plan, hotels would need to collect extensive performance data and analytics to predict demand, and then carefully design a dynamic pricing model to obtain the maximum revenue.
Relying on spreadsheets and crunching data manually to make the pricing strategy is both error-prone and inefficient. Automated revenue management tools provide the best means for faster, accurate and efficient revenue data processing.
Make an Effective Revenue Management Strategy
Creating the right strategy is complex as we need to take careful consideration of various data to make key pricing decisions. It includes numerous factors that affect business growth.
Market Research: Know everything about your market. Answer questions like— Which source has the most demand? What are your busy seasons? What are your off-seasons? What are the expectations of your ideal audience? Segment your guests and evaluate all their booking habits.
Take time to find out about your competitors, who they are, and what they’re doing to get more guests.
Business Forecast: Try to anticipate demand and revenue, so that appropriate action can be taken to optimize financial gain. Forecasting is done using historical data on current bookings, market performance, business seasons, local events, etc. to spot market trends. Use these analytics to create a competitive pricing strategy
Drive More Direct Bookings: Online travel agents (OTAs) may increase your market reach, however, you also have to pay them a sizable amount as commission. It is important, therefore, to encourage booking directly through the website. A well-designed website that is optimized for SEO, is the key to cut out the third man.
What is the Hotelogix Solution?
Hotelogix offers an integrated pricing revenue management software that gives the advantage of having all your decisions dispersed in real-time across relevant channels. An integrated revenue management system enables your hotel to have a more effective pricing strategy by taking a structured and algorithm-driven route to understand and anticipate the customer as well as the market needs.
A revenue management system is a user-friendly, easy to set up tool that allows you to increase your RevPAR, regardless of the size of your hotel. Hotelogix’s integrated revenue management system factors in your hotel’s history, competitors’ prices, local and national events, your hotel’s e-reputation, transportation prices, weather forecasts and exchange rates. Whether your hotel is focusing on business travellers, analyzing competitors or adjusting the pricing strategy it can all be done automatically using the Hotelogix PMS. Besides eliminating human errors, systematic revenue management software, it also offers to
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Help make data-driven decisions based on your hotel’s overall growth and performance.
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Create daily, weekly, monthly, quarterly and yearly reports to create a historical database of your company’s performance.
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Understand guest reservation details— source, cancellations, no shows, temp reserves etc. for a particular date range.
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Analyze the revenue generated at each market segment, make a market analysis report or business analysis report.
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Create reports to know your hotel’s financial health, hotel occupancy, your RevPAR, and average rate and even to understand your major business sources.
Your hotel can get all of this information with one click, enabling you to spend more time on guests and less time on pricing decisions.
Hotelogix PMS, you can be equipped to unleash the revolution of hotel revenue optimization software through dynamic pricing. It gives you the power of 3 super tools – Powerful PMS, Channel Manager and Revenue Management System. Dynamic Pricing is a time-based pricing model that projects the best available rates at the right time, for the right guest. It helps by altering pricing strategies, it saves time, cost and resources of manually creating a strategy, and it makes the most accurate decisions to optimize profitability. Adopting a dynamic pricing strategy is a great way to ensure increased occupancy, as well.
Hotelogix PMS and distribution system allows you to manage operations and room distribution efficiently. Online distribution allows a hotel to increase online visibility and reach a wider market. This, in turn, helps increase sales, room occupancy and profitability. Hotelogix Distribution System connects with Channel Managers and GDS to update pricing and availability in real-time across all channels.
This integration with Hotelogix PMS will help you experience the added benefit of having an automated revenue management system that decides the price, which can then be applied across channels in real-time.
Are you ready to experience the power of integrated revenue management with Hotelogix PMS?
Hotelogix is a cloud-based solution that works with minimal infrastructure
