Secrets behind Hotel Revenue Management strategies uncovered

SoftwareSuggest

SoftwareSuggest

Senior editor

Parul Saxena

Chief editor

Last updated: May 2, 2021

Hospitality, the business of receiving and serving guests is considered to be the one going through a phase of meteoric rise everywhere after Health and Education. This is because of the declining levels of global poverty, particularly in the third world countries since they have more disposable income with them now.

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With this rise in the standard of living comes the desire to travel and tour which means staying in hotels. And so the Hoteliers everywhere have girded themselves to make sure that they cater to all the whims and fancies of their guests in a really fun and creative manner. Hotel revenue management has now gone from being a craft to becoming a science.

There are a few secrets behind these hotel revenue management strategies which will be uncovered here.

The Key to a Successful Hotel Revenue Management is:

  • To sell the right product (guestrooms, banquets or lawn services)
  • To the right customer (business, leisure, convention, government function)
  • On the right day (weekday, weekend, festive occasion)
  • For the right price (rack rate, corporate, group rate, government rate or discount rate)

The Benefits of Hotel Revenue Management

This all could only happen if the whole staff of the hotel always stay upgraded and trained under the latest hotel management software system available in the market. Hospitality software tools such as innRoad, Hotelogix, Frontdesk Anywhere, Hotello, WebRezPro, roomMaster can help in running the hotel in a streamlined manner. Some of these software applications are a Software-as-a-Service (SaaS) system designed to encompass within itself every nano detail.

The hotel revenue management software is involved in managing everything in a hospitality business like booking rooms, marketing, integrating global distribution system of hotels or resorts. This hotel revenue software solution offers over a hundred customized report templates fit for daily flash reporting and comparative analytics highlighting average daily rate (ADR) and occupancy percentage. Other benefits include third-party integrations, native global distribution systems (GDS) integration, eRevenue and eReputation manager and eConcierge services with no additional costs.

While some other is a cloud-based hotel management software that provides applications like Point of Sale, housekeeping features, dining reservations. This hotel software solution operates through a single platform, an interface which can act as a single point dashboard to control all the major hotel tasks and operations. Also, these software programmes have major credit card payment gateways, inventory management for maximizing online sales with two-way connectivity to online travel agencies (OTA), electronic signature capture and a housekeeping console.

Other hotel management software applications like Maestro PMS, MSI Cloud PM, Opera PMS by Oracle focus more on property management systems like front office, accounting, daily management and operations thus going a long way in negating unnecessary daily overhead costs. This hospitality management system also generates a quick real-time analysis of vacancies present in the hotel chain and notifies it to the overall management immediately.

Plus, it integrates all the employees with a detailed calendar notes of the future events booked in the hotel. Thus, minimizing any shortfalls in the execution of the services provided to the organizer of the said event. Plus, there is also an employee to employee emailing system helping everyone keep themselves abreast with daily happenings. This hospitality software also helps in generating revPAR (Revenue per Available Room) which is a neat way of cutting costs.

The hotel revenue management software is available in many different and diverse languages. They are easy to download from the internet after properly buying them for the right vendor. The hospitality management software is also easier to install on your computer without the fear of any bug or glitch entering in your operating system. Plus, this software can be accessed through any device and gadget, be it a personal computer, a laptop, a mobile or a tablet. There is hardly any system crashes and just in case you come across any error or the system gets hanged, there is always a new upgraded version available online.

And if the hotel management software is linked to a cloud service of a major technological company then you don’t even have to upload or download anything. All you need then is an internet connection and access to that software site. This hospitality management software will also help you in getting connected with the leading hotel industry partners. These service providers help a Hotel Manager to keep the hotel running daily in the best way possible. This way the hotel management won’t face any hassle in keeping the guests happy be it for a short or long term stay in their premises.

The Long-term advantages of Hotel Revenue Management Software

One of the biggest advantages of these hospitality management software applications is that they all are within one’s reach, revenue managers should always pay attention to the basic factors that influence current and the forecasted revenue levels such as: occupancy rates, general sales, target groups, market share information, forecast information in capacity management, duration control, customer segmentation and customer satisfaction. This is so because a bad or an outdated hospitality software can badly affect the revenue management decisions.

A faulty revenue management can harm group room sales, transient room sales, other revenue opportunities, local and area-wide activities and fair market share forecasting. Also, at the same time, external influences can also shape many hotel’s revenue management strategy such as: Fast changing weather patterns, holiday and event information, construction of important locales such as airports or railway stations away from the hotel premises, slashing of prices by the competitor during festivals, entry of a new hotelier with allocation of heavy discount prices and up to date facilities.

Also, read: 10 Straightforward Ways to Cut Off Hotel Costs

The Crux of Hospitality Management Software

 There is no replacement for the two most important goodwill creators for any Hotelier – food and polite service. There is no hospitality management software for these two distinctive features that makes any hotel a class apart. So the Hotel Manager needs to go the age-old route of strict discipline and dedication to maintain the standards of the recruits. Both, the chef and the bell boys plus the waiters and the other staff around the hotel have to go through a strict regimen every six months to upgrade themselves. They need to put in hours to get their recipes and etiquettes absolute correct. They have to be on their toes all the time to be appealing to all the guests. This shows that not everything can be done and achieved only hospitality management software. Some things are still done the human way.

Hotel Revenue Management is the need of the hour

After considering all these tool and factors, it is obvious that all revenue management strategies always need to be flexible. They should be able to cope with both anticipated and unexpected changes in the Hospitality sector along with the taste of the consumer.

Always remember, a Hotel remains a house away from home only when it lacks in showing affection to everyone.

Also, read: 8 Latest Hotel Management Software Trends to Watch in 2018

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