How technology can help hotels maximize revenue in an uncertain market

GUEST OPINION: To operate profitably in a disrupted market, hoteliers must utilize all hotel functions and maximize their profits in unison. Rather than looking at hotel revenue solely through the lens of guest room rates, this holistic approach considers other revenue streams, with the goal of more strategically coordinating the revenue mix and profit centers of the hotel. property.

Maximize revenue from each guest
To properly understand the value of a guest, one must take a holistic view of the customer’s lifetime contribution, not just their spend per room rate.

To get this total perspective of a guest’s revenue, data from all hotel transaction systems must be integrated to provide a true picture of a guest’s preferred activities and overall value to include ancillary value as well. – from food service to day bathroom use, guest rooms to gift shop shopping, reservation channel cost, etc.

By using an advanced revenue management system (RMS) to help identify their most valuable guests, hoteliers can employ strategies to make those guests feel welcome, recognized and valued. inspire long-term loyalty.



A modern RMS makes a significant difference to both the top and bottom line for hoteliers. Using a series of specialized algorithms and calculations, an RMS automatically assesses hotel performance and market demand, and then sets pricing and rate availability decisions accordingly across the distribution ecosystem.

The total profit optimization capabilities built into the most sophisticated RMS also enable hotels, resorts and casinos to capture the most valuable business by considering the total contribution for each guest.

This allows hoteliers to estimate total revenue, profit margins for each revenue stream, and costs associated with acquiring and servicing guest stays in real-time, while determining highly sought-after metrics such as profit per available room (ProPAR) .

Adapting to a changing market
While historical booking data may be less directly comparable to today’s conditions, an RMS should be able to construct a set of forecasts based on all reliable external and internal market intelligence, such as notifications of government, travel policies, flight data, Google search trends and market reports.

In this environment, revenue managers are challenged to find relevant data sets today and therefore must build their forecasts based on several scenarios (optimistic, most likely and pessimistic) before reviewing actual demand against forecasted results and adjust long-term pricing strategies.

Use analytics to support business planning
While older versions of an RMS can use a limited number of forecast models at a level manually defined by users, the high-performance forecast built into a modern RMS relies on hundreds of advanced forecast models where the most suitable is selected by the system. automatically.

Next, the forecast model parameters are calibrated to understand the impact of specific price sensitivities – no-shows, cancellations, booking windows, etc. – within the forecast group in a scaling of individual rate codes and room types.

Hotels face increasing pressure to optimize operational costs and budgets. Folding them into the forecasting process intelligently and using it as another step towards operational planning and budgeting can improve staffing efficiency and hotel profitability, even in a disrupted market.

Analytics can be used to solve a variety of challenges, including adapting forecasts to changing demand. Solutions must be flexible and advanced enough to select relevant data sets for multiple segments or channels in the property.

For example, the domestic leisure segment will have more relevant stories than the international tourism market.

Automate hotel revenue processes with an advanced RMS
Collecting, evaluating and manually calculating data for pricing purposes via spreadsheets is not only a tedious process, but also slow and highly susceptible to errors and missed opportunities, especially in this age of uncertainty. This is why an RMS is more important in the hospitality sector than ever.

An advanced RMS not only generates prices that adjust to market changes, but also takes into account the competitive landscape and a guest’s willingness to pay, to help generate demand and maximize revenue opportunities.

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