You are happy with your revenue management systems.
You have a great rate shopping tool.
You have an equally excellent tool to distribute your inventory
You are satisfied with your ADR and occupancy.
So what’s wrong? Isn’t everything perfect already?
Not even close.
The question isn’t “Is my RevPAR good enough”
Rather it is, “How can I make my RevPAR better?”
That’s the question that you need to ask – every single day.
Because even though your current numbers are great, you are probably still missing 3 important elements:
Here are 3 Elements that can help you make more revenue everyday
1. The right data
Your pricing is only as good as the data you consider to arrive at your pricing. Most hotels still look at competitor rates as the only benchmark for determining their prices.
But do you really think that’s the only thing that matters?
Of course, there is room supply and occupancy, but there’s more.
What about reviews and ratings? How do they influence the prices that you can charge?
Chris Anderson from the Cornell Hospitality Research Center (School of Hotel Administration at Cornell) undertook a research project titled “The Impact of Social Media on Lodging Performance”.
The study used data from STR, Travelocity, comScore and TripAdvisor to assess the impact of social media on a hotel’s ability to set prices, drive occupancy and increase revenue.
The study concluded that a 1% increase in a hotel’s ReviewPro’s Global Review Index ™ score increases ADR by 0.89%, occupancy by 0.54% and RevPAR by 1.42%.
However, we don’t really need studies to tell us that reviews and ratings play an important part in your occupancy as well as ADR.
Are you considering the impact of this factor? If yes, how can you use this data quickly to gauge a precise impact on your pricing?
2. Automated decisions
Data is just the first step to determining your transient prices. How do you quickly use that data to take a decision on what your ideal transient prices should be?
Are you dependent on excel sheets to collate large amounts of data and carry out complex calculations?
The trouble with doing that is there is simply too much data out there to take pricing decisions through manual means. The data also keeps changing all the time. Therefore, to keep up, you would need to continually recalculate new prices.
The fact is that it is no longer efficient, or even feasible to continually determine your transient prices manually.
You need a system which does it for you. A system which keeps crunching data from various price points and automatically recommends a price at which you will maximize your revenue.
More about this in a minute. Let’s come to the third element.
3. A Unified System
One of the biggest challenges for revenue managers today is speed of response.
Today, an increasing number of bookings are being done at the last minute. One of the key causes of this is the increasing rate at which consumers are using mobile devices to carry out bookings.
Last minute bookings mean that you will have to keep updating your prices in step as well as distribute your prices.
Therefore to have more optimized prices that maximize your RevPAR, you need to respond faster to these changes.
You might have excellent price intelligence and distribution tools, but how easy do they make your job in this demanding era of revenue management?
Instead of separate systems, what if you had a single system which does carries out all these functions?
A single system which gives you intelligence about the various factors that drive transient pricing, recommends an optimum price based on that intelligence and also distributes those prices quickly and accurately.
And of course – something which also integrates with your PMS.
What you need is Unity
Revenue Management is becoming more complex as we speak. What you need is a system which is simple, integrated and accurate. All this in a single suite.
This suite is our latest innovation at RateGain and we are calling it Unity.
Unity is a unified revenue management suite which gathers intelligence from diverse sources, uses that intelligence to arrive at a price and distributes those prices accurately and quickly.The simplest way for you to make more revenues everyday is to get this integrated suite.
To know more about Unity, click here