Large chain hotels usually have the benefit of revenue management departments, deep marketing pockets and large inventory. But what about independents? What about the operator who is not only the owner but also the GM and single person tasked with devising rate strategies? It’s not easy, but thanks to the latest PMS technology and techniques that have been proven at chain level and which can now be adopted by smaller hotels, revenue management is far easier. With 2020 now in full swing, we’ve got five hotel revenue management tips that will help you make a huge success of this year.
1. Implement the right PMS
Modern revenue management strategies need data to be effective. And there’s one platform on which you can capture the most important data - your property management system (PMS).
A modern PMS will enable you to capture detailed guest information, historic stay details, and the performance of your rates.
Your PMS isn’t just an elaborate booking diary - it should sit at the heart of your hotel revenue management strategy.
2. Look for cloud-based solutions
Whether you implement an all-singing, all-dancing PMS or decide to go piecemeal with your hotel tech, make sure you invest in platforms that are cloud-based.
There’s simply no reason not to opt for a cloud solution these days. Granted, super-fast internet in the UK still has room for improvement in certain rural areas, but that’s becoming less of an issue.
Modern cloud software is light on its feet, affordable and continually updated by suppliers. If you want your revenue management strategy to be similarly dynamic, cloud software will make it a reality.
3. Rely on integrations
Whether it’s your PMS talking to your online booking engine, or two-way connections with OTAs for channel management, integrations are vital for effective revenue management.
If you have to update room pricing in multiple systems, you’ll inevitably forget. Equally, if you’ve created a strategic offer to boost midweek reservations but get it wrong on one of your channels, you could fall foul of rate parity rules - and confuse guests.
Make sure all of your hotel technology is integrated. And, if integrations aren’t available, check with the supplier - they may have them in the works or be willing to talk to third-parties to get something up and running.
4. Don’t be afraid to flex
The best revenue managers know that price flexing is vital if a hotel is to keep pace with the competition and market demand.
This relies on a PMS or revenue management system that enables price flexing, but if you already have that in place, don’t be afraid to make copious use of it.
If demand drops, flex your prices. If a last-minute event takes place in your area, flex your prices. If your competition does something unexpected, flex your prices. If you spot an opportunity the chain hotel down the road appears to have missed, flex your prices.
5. Analyse your reports
There’s nothing worse than flying blind when it comes to revenue management, and if you fail to analyse reports, you’ll be doing just that.
Your PMS, channel manager, and revenue management tool should include reports that enable you to evaluate the effectiveness of your rate strategies.
Make sure you review that data regularly. What does it tell you? Can you spot trends, peaks, troughs, and missed opportunities?
The more you analyse rate performance, the more you’ll know whether or not your revenue management strategies are working.
Ready to make 2020 go with a bang? Our hotel revenue management tips above only scratch the surface of revenue management for independent hotels, but they’ll get you in the perfect mindset for success.
Welcome Anywhere has over 30 years of experience in helping independent hoteliers deliver guests an unforgettable experience with its simple property management system that controls your daily activities. The best part - it’s all cloud hosted! We develop scalable solutions for your property such as PMS, a Booking Engine and Channel Manager. Our team has a wealth of experience in the hospitality industry and we serve you to better serve your guests.
Call us today at + 44 (0) 33 0100 1090, or email us at email@example.com. We will be happy to walk you through Welcome Anywhere’s all-in-one solution for your property management needs.