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|Pull your revenue management strategies out of the dark ages!|
In case you haven't notice, times are tight for hotel operators all over the world. Revenue Management is the key to keep hotels in business and thriving. But what used to be good strategies years ago seem to be completely obsolete today, due to the expansion of new technologies and the changes in booking patterns. Yet, a lot of Revenue Managers are not changing their strategies, causing great losses in bookings and revenues, and blaming it on the recession. It is possible to boost hotel profitability - even in these tough economic times - by renewing the strategies and techniques used for revenue management.
The Answer is Scientific
The old days of predicting future sales based on current occupancy, history and the time of year are gone. The Internet lifted hotel channel management into a new realm, and it offers detail and analysis that helps set a rate scheme based on data no normal human is able to consider. The logarithmic approach still uses data from the past, but this revenue management system can peek into the future as well. A scientific approach with statistical analysis takes out all of the guess work and gives you certainty during these uncertain times.
Start Living in Real Time
If your RMS is not working in real time, then the system is not doing everything it can for you. In 2009 over 70% of travel bookings were made on the Internet, so it is vital that rates adjustments are made automatically and constantly, depending on what is going on with your online competition in real time. It doesn't matter whether the reservations are coming through a hotel Website, the GDS or an online travel agency. Bookings come at all hours of the night and day, and this means analysis must be ongoing and adjustments have to be made at all hours of the night and day, including weekends - in real time to snatch up those real booking dollars.
Revenue Managers are not Superhuman
Revenue managers must analyze hotel rate structures that are complex and always changing. This can lead to human error and the inability to squeeze out the highest possible RevPAR on a hourly basis. Automated RMS systems can keep track of the continuously fluctuating data that makes up a hotel's 24-hour cycle of supply and demand. OTA allotments, rates-to-bookings ratios, reservations limits and other subtle nuances must be monitored and examined in order to optimize both bookings and rates all day, every day. No normal revenue manager can do that alone, but with the help of an integrated online competitive yield pricing sales and distribution system, they can.
Improve your relations with the OTAs
Online travel agencies, like Expedia, Orbitz, Travelocity and Priceline, are gaining popularity, and they can generate hotel demand that will boost hotel profitability. The Internet is where it's at for hotel reservations today, and potential guests are savvier than ever when it comes to finding the best deals on hotel rates. Consumers are learning to look around the Web to find the best hotel rates available. An efficient revenue management system takes full advantage of the Internet and makes certain the hotel has a dominant presence with the major OTAs. In order to take advantage of the extensive use of OTAs, the RMS must constantly gather information online. It would take hotel managers hours at a time and someone working through the night to do what an automated system is capable of. Niche travel sites are also on the rise and are another channel that must be monitored, maintained and nurtured. We recommend fully integrated systems that are completely automated and make rate and allotment adjustments in real-time, 24 hours a day. It will also help eliminate forever the parity issues revenue managers may face if rates are updated on the channels manually!
With new automated and integrated RMS software in place, the hotel gains visibility on niche travel sites, major OTAs and outshines competitors by beating their rate offerings. Guests are attracted by the best available rates, which have been generated automatically, thus freeing revenue managers to focus on strategic controls, quality improvement, cost management and boosting guest service. Customer loyalty is nurtured and word of mouth travels quickly around the Web. This brings in bookings and boosts occupancy to rates never thought possible.
Let go of your old systems, embrace new technologies that are out there before your compset does.
About REVPAR GURU
REVPAR GURU provides hotels around the world with an alternative revenue management software solution, to manage RevPAR intelligently and effectively, and deliver maximum profits. REVPAR GURU's custom-designed Yield Dynamic Price Engine meets the rapidly changing needs hotels in a demanding business environment - dynamic rate optimization, real-time pricing, integrated internet and extranet yield channel management, and GDS sales distribution, to increase a hotel's RevPAR while maintaining rate integrity and automated rate parity. It is the only revenue management solution that automatically optimizes and updates hotel rates across all major consumer travel websites, based on all market variables and in real time, and provides a strategic room inventory control. Once deployed, hotels can boost their occupancy rates and cut their distribution costs dramatically. Headquartered in Miami, Florida, additional information can be found at www.revparguru.com or by calling +1.786.478.3500.
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