To ease the issue of recurring tasks, revenue managers can implement a strategy called management by exception. The method involves the use of software to automate the repetitive and daily tasks facilitating revenue managers to focus on recognizing and building plans for their highest demand days.
FREMONT, CA: Today, travelers are planning, searching, and booking their journey interminably. So, like any other hospitality functions, hotel revenue management is also seeing a demanding change. Market changes can come in unexpectedly, and the competitor rate strategies can make immediate demand surges or declines. As a consequence, a hotel’s demand, pick-up, and pace can see an alteration at any given time.
Revenue managers must act in response to the changes with pricing updates in real-time—even if it is the middle of the night or weekend. The task is difficult, and too many administrators are falling short. Fortunately, progressions in technology can help revenue managers be more efficient. The supervisors are no longer enforced to collect reports from several systems and put in daily numbers in an Excel spreadsheet to settle on the right rates. Instead, the statistics required to make pricing decisions is right at the fingertips. With systems getting more innovative, they can do much of the monotonous work for hoteliers, providing them the time to focus on essential strategies.
Modernization around machine learning and data is helping hotels anticipate demands more accurately and make optimal pricing choices, consequently driving more revenue with profitability. Accordingly, the intangibles are also crucial in most cases. Today’s systems are managing much of the repetitive, complicated, and time-consuming tasks, shortening the length of human processes and freeing administrators of time.
Revenue managers are additionally incorporating business strategies to focus less on pulling pricing levels and more on building approaches to capitalize the most packed days. With more time to plan, the managers can lend a hand in other chief areas like digital marketing and distribution. The assistance offers departments across the hotel with accurate information to help make the best possible decisions. As an additional benefit, the managers get to work a more normalized work week, spending more time with their loved ones.
Hotel Revenue Management Tools Assist in Regaining the Time
Be it one property or an entire selection, a specific hotel revenue management tasks are recurring and add little value. To ease the issue, revenue managers can implement a strategy called management by exception. The plan is a style of business management that uses software to automate the repetitive and daily tasks facilitating revenue managers to focus on recognizing approaches for high demand days. With a precise demand forecast, businesses can easily spot compressed nights far into the future, giving more time to perform marketing, optimal pricing, and distribution strategies.
One of the paradigms that can help hoteliers to simplify their processes is to assemble the data. For years, revenue managers have been running data reports in their Property Management System (PMS) and organizing them on the Excel sheet. In the present day, custom report builders assist in collecting more real-time information, thereby saving the revenue manager’s time each day. Most administrators are also manually pushing the rates to their PMS. In an old Best Available Rate (BAR) system, one price would be pushed, and each segment rate would be obtained as a derivative of BAR. But with today’s refined pricing strategies, every segment and room type rate is yielded separately for each day, automating the price pushes and saving time.
On most parts, the businesses on a particular day(s) might look similar to the other. Revenue administrators should not have to center their focus on the days and instead can rely on technology to free their time and concentrate on critically vital areas. The decisive regions can give information that the software may not be able to provide. Management by exception process requires building trust between technology and human. Once it is set that a system’s pricing recommendations and demand forecast are accurate and trusted, only then the processes can be automated.
Technology Empowers Business Owners
From their set-up, hotel revenue management systems are committed to making businesses more profitable by evaluating demand and dynamically pricing the rooms accordingly. While the assessment remains a core part of the company, it is also vitally essential for technology to empower and enable hoteliers. The tool helps businesses to work smarter, more effectively and provides a better guest experience. Upon the benefits falling into their place, the revenue increases will follow.
The hospitality industry’s next development ought to focus holistically on the role of revenue management and make sure that it is sustainable by advancing revenue teams’ quality of life. Furthermore, the progression also includes improving the performance of the hotel, along with many other intangibles. Driven by machine learning and data, technology can assist hoteliers in growing both professionally and personally.