Travel & Hospitality Tech Outlook | Thursday, February 17, 2022
A revenue management system (RMS) allows hotels to automate key revenue management tasks and enhance pricing by room type, which eventually aids in attracting in the ideal customer at the ideal cost.
FREMONT, CA:Hoteliers must concentrate on generating demand from the most lucrative channels to recover the tourism industry. With the aid of a revenue management system (RMS), hotels can automate crucial revenue management chores and improve pricing by room type, finally assisting in luring the ideal customer at the ideal cost.
To estimate demand as accurately as possible in the past, manual revenue management systems have witnessed a hotel's booking history and present activity levels. Revenue managers raised the tariffs at times of high demand. They would discount them when demand was low to feign demand when necessary.
Stay ahead of the industry with exclusive feature stories on the top companies, expert insights and the latest news delivered straight to your inbox. Subscribe today.
Demand generation and management are rarely this easy in 2022 and beyond, though. It's nearly impossible to manually monitor hotel booking activity, recognise changes in demand, and respond in time to make a profit in the face of strong reliance on online travel agencies (OTAs) and flash deals.
Manually gathering, analysing, and calculating data using Excel spreadsheets in such a fast-paced setting is time-consuming and laborious, slow, and prone to errors and missed opportunities. Even the best minds would produce a delayed and partial result since the output would be based on information that has become irrelevant over time.
Here, an RMS can significantly alter the situation. An RMS automatically evaluates hotel performance using a variety of sophisticated algorithms and calculations. This enables hoteliers to quickly compare revenue and the number of rooms sold against the market and overall hotel data, both of which are essential for boosting future hotel revenue and profitability.
Today's successful demand-creation strategies depend on precise, reliable data to pinpoint promotional requirements, create campaigns, and direct pricing and inventory decisions. Data from revenue management can help identify those most valuable to the hotel from the perspective of demand marketing.
Analysis that considers a guest's overall value from purchases of food and drink and auxiliary products like spa, golf, and shopping should be conducted. These insights can then be utilised to develop customised, targeted marketing strategies to lure them back or draw in more tourists who share their travel preferences, raising overall spending and hotel performance.
Collaboration across traditionally separate hotel departments is essential to generate significant guest demand. Together, revenue management and marketing teams can increase demand and revenue by determining not only which customers to target or market segments but also when to run a campaign, such as during periods of low occupancy when a hotel must boost demand by running a promotion or offer to target guests, as well as which distribution channels and campaigns, promotions, and offers will be most successful using revenue performance data.
S Hotels now use the IDeaS G3 RMS in Thailand to increase retail demand and boost the hotel chain's profitability. S Hotels anticipates that, when combined with a thorough digital marketing campaign, its new approach to revenue management will, in the following year, double revenue from its booking channels compared to pre-pandemic levels.
More in News