Imagine having a tool that helps you set the right tariff for each of your hotel room categories, based on the market analysis and other factors. Appealing, right?
This is what a Hotel revenue Management System does.
The crucial aspect of any business is to rake in the revenues. A hotel should offer interesting tariff plans and novel campaigns to attract potential guests and visitors. Smart pricing options play a good role in enticing visitors to hotels.
And given how competitive the industry is today, tasting success is a far fetched dream without a reliable and powerful Hotel Revenue Management System. Before we understand the myriad benefits that a Revenue Management software guarantees, let’s take a quick look at the fundamentals of a Hotel Revenue Management System.
What does a Hotel Revenue Management System do?
Here’s the thing. It is not feasible for a hotel to assign a staff member to check their competitor rates in real-time and update their hotel rates accordingly. It involves manual efforts, complex calculations, and may result in high chances of error. It may not be a highly analyzed decision as well.
A Hotel Revenue Management System is a user-friendly, easy to set up tool that allows hotels to increase their ReVPAR, regardless of the size of the hotel.
A Hotel Revenue Management System helps in setting the right prices for hotel rooms at the right time. It pulls together data from the hotel, the market and does a general analysis via an efficient and convenient tool. For hoteliers, a single dashboard access to manage their operations, distribution and revenue management will be a great advantage.
There are times when a hotel offers discounts during a certain period and at other times, the hotel increases the price of the rooms. To maintain a balance between these periods, a hotel revenue management system is essential to decide the right price after doing a thorough analysis of the market, competitors and other factors that go into deciding the price of the room types.
This is why hotels need a revenue management systems – to manage pricing and to create inventories. A hotel revenue management system does that and more – it also churns out campaigns and smart ideas, and even that’s just scratching the surface!
Here’s why every hotel needs a Revenue Management System:
- Eliminate Errors with a Hotel Revenue Management System
- Let data drive your insights and decisions
One of the biggest advantages of a Revenue Management System is that once the tool pulls out the right prices, hoteliers can update the prices across all channels in real-time, decreasing the chance of manual errors.
If a hotel is not using a revenue management system, the cost of human errors needs to be factored in. The hospitality industry is sensitive and is run by repute. Any kind of error in terms of pricing can dent a hotel’s credibility in a big way. But, with a hotel revenue management system in place, there will be a drastic reduction in errors and efficiency will be higher.
A hotel revenue management system collects accurate data, build a historic data inventory that will clearly segregate the prices and demands for lodging. So, you can create your pricing strategies with a competitive edge.
Benefits of a Hotel Revenue Management System
- Follow the price recommendations and maximize your hotel’s RevPAR
- Save time by implementing an optimal price strategy
- Powerful yet simple to use platform saves on adapting time
- The algorithms deliver the highest quality price recommendations
Hotelogix partners with best-in-class Hotel Revenue Management Systems to empower hoteliers to better streamline and optimize their revenue.
Key Features of a powerful Hotel Revenue Management System
- Rate recommendations up to 90 nights, per room type
- Actual reservations and pick-up
- Accurate monitoring of your competitors’ rates and the events
- Estimates of profit generated by following the recommendations
- Pick-up per segment and per day (realized and forecasted with unconstrained demand)
- Follow the performance of each of the forecasts and recommendations
- Set your budgets and targets (Occupancy, ADR, Customer Segmentation)
- Follows the impact of e-reputation and sets it on your pricing and bottom line
If you are looking to take more informed, data-driven decisions when it comes to your room rates, you need a Hotel Revenue Management System.