By Karan Iyer
Hotel revenue management systems are used to analyse the correct rate at which a hotel room should be charged. The purpose of them is to help hotels generate more profit, as it prevents rooms being underpriced. At the same time, they also prevent revenue loss by checking hotel rooms aren’t overpriced either.
Several factors such as holidays, weekdays, weekends, festive or wedding season, competitor rates, and other market conditions are taken into consideration for predicting the price of the hotel room inventory. As a result of these factors mentioned, hotel prices need to be modified from time to time. Hotel revenue management systems are the easiest way to do this, and ensure you’re keeping up with competitors.
Why Hotel Revenue Management Technology
Hotel revenue management technology may seem like a lot of calculation and numbers however, artificial intelligence is at your service. Software is available that does all the combination permutation work of the factors mentioned above. Apart from pricing your rooms just right, they also analyse client reviews, OTA performance and other operational tasks and alert you of these. It will ensure you’re available to focus on each customer personally.
So How Does the Technology Boost Hotel Revenue?
The alerts set in automation catch every market trigger and alter your room price accordingly. It could be your competitor changing rates or a sudden surge in the market. The technology catches them all and calculates the price change multiple times a day.
Managing Marketing Channels
Hotel businesses can be run through various channels. Some of them are through OTA platforms, websites, local agents, and in-house marketing teams. The automation can place alerts for every forum. It can generate a performance report for each channel for you. It can also automatically adjust the price in OTAs and hotel website according to their reach or TG.
Most of us are tired of different excel spread sheets and reports, but having a hotel revenue management system can solve this. The system can generate all of the following statements for you:
- Pricing strategy
- Property performance report
- Revenue analysis & prediction
- Profit report and estimate
- Competitor’s price analysis
- OTA channel performance
- Staff performance
In any business, prediction and forecast are vital. The hotel business is no exception. Now you don’t need to find a “Market Guru” who can provide you with quarterly, half-yearly, and yearly forecast. All this is possible through Hotel Revenue Management Technology. With this, you can be better prepared for the ups and downs of the market.
Imagine all these functions performed without human error and extra monthly cost!