Travel & Hospitality Tech Outlook | Wednesday, January 27, 2021
Smaller hotels can compete with larger ones using automated revenue management solutions by implementing an RMS.
Fremont, CA:Smaller hotels, like larger ones, are continuously creating data. Especially if the facility offers a restaurant, spa, bar, or other revenue-generating amenities, it is tough to compile and analyze all of this continual data without automation. Furthermore, smaller hotels usually have fewer resources and no dedicated revenue manager, leaving the revenue strategy to the managers, director of sales and marketing, or a revenue management team - all of whom already have busy days filled with other tasks. This frequently leads to over-and under-pricing of accommodation rates, putting small hotels at a considerable disadvantage.
Why do small hotels need an RMS
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All rooms count in small hotels
Incorrect room pricing has a substantially greater influence on ADR and RevPAR performance. When there is a pricing problem at a larger hotel, it is easier to hide the rate inaccuracy. Simply put, bigger hotels often hide a plethora of sins in volume.
Small independent hotels compete with big hotels
Branded hotels utilize a customized revenue management system. If an independent property has branded hotels to compete against, the branded hotels have a competitive advantage since they have data visibility and technology resources that the independent hotel do not have.
Analytical forecasting can help understand demand.
All hotels, large and small, profit by knowing current demand, future demand. This helps to establish the correct price for the right guest, at the right time, and through the right channel.
Balancing business mix and length of stay
With fewer rooms, managing booking pace and collecting optimal reservations by accepting the most profitable demand across arrival dates and duration of stay is even more important for optimizing income. Rather than focusing on peak nights and accepting lower-rated bookings when it isn't required, which merely reduces revenue.
Selecting a Profitable Group Business
Smaller hotels, in addition to having fewer guest rooms, frequently offer restricted meeting and event space. Accepting groups under the right conditions, at the right pricing, on the optimum set of dates, while understanding transitory displacement, is critical to producing additional profitability and contributing to higher utilization.
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