Smaller properties can compete with larger properties using automated revenue management technologies if they use an RMS. An RMS assists independent hoteliers in making data-driven and fact-based decisions.
Fremont, CA: Hotels generate data on a regular basis. Especially if the hotel offers a restaurant, spa, bar, or other revenue-generating amenities. Compiling and analyzing all of this continual data is tough without automation. The most challenging aspects of manual revenue management is the inability to collect high-quality data in a timely manner and use it before it becomes obsolete. Hotel data comes from various sources, is always changing, and is essential for making accurate pricing decisions. Smaller hotels often have fewer resources and lack a designated revenue manager, leaving the revenue management process in the hands of unqualified workers.
Small hotels need a revenue management system because:
Every single room counts for small hotels
Incorrect room pricing has a substantially greater influence on ADR and RevPAR performance. If a larger hotel makes a pricing error, it is easier to bury the mistake. Simply put, larger estates can cover a multitude of crimes due to their sheer size.
Understanding demand through analytics
Recognizing current demand, future demand, and where demand bookings is beneficial to all hotels, large or small. As a result, the right pricing may be established for the right guest at the right time and through the right channel.
Small hotels competing with large hotels
A unique revenue management system is used by branded hotels. If an independent hotel has branded hotels in its comp set, the branded hotels have a competitive edge every day since they have data visibility and technical resources that the independent hotel does not.
Proper staffing levels
Proper hotel employment has an impact on the ability to create a great visitor experience. Forecasts that are accurate help hotels maintain adequate staffing levels.
Balancing business mix and stay duration
With limited rooms, managing the booking pace and securing the best reservations by taking the most valuable demand across arrival dates and lengths of stay is even more important for optimizing income. Rather than concentrating on peak nights and accepting lower-rated business when it isn't required, which simply reduces revenue, focus on peak nights and accept lower-rated business when it isn't required.