Adapt the new revenue trends or stick to the old ones?
Needless to say, the hospitality world is dynamic as other businesses. With changing times, advancements in technology and new trends in the market, the old revenue management system is facing a setback. Earlier the leaders of the hospitality industry were majorly big hotels with multiple chains across the country. As OTAs i.e. Online Travel Agents grew into the market and people have become mobile-friendly, the changes in revenue management are the need of the hour for hotels. The modern-day revenue management is certainly more than rates and room availability.
Many hoteliers must be thinking ‘ What is the need to try new revenue management trends when the old one works fine for a hotel?’ Well, unlike years ago when generating high revenue was not every hotel’s cup of tea, now hotels of any size can earn high revenues and contribute to the growing hospitality sector. All thanks to new revenue management trends.
We are almost entering into 2020 and the upcoming decades are all about technology and automation. Having an automated revenue management system right now is a luxury but in the coming years, it will become an integral part of revenue functioning in hotels. Automation provides greater management efficiency. So, it's better to gel up with this trend and start reaping benefits from now. The next trend you can follow is by encouraging your prospect guests to go for direct booking from the hotel website. It is a comparatively difficult task to clutter down the attractive offers by OTAs. You can offer irresistible deals on direct bookings. It is good for branding and repeated sales.
The main goal of revenue management ‘Profit’ should be taken care of. Earlier hotels used to focus on traditional key performance indicators (KPIs) but now the attention is being shifted to GOPPAR i.e. Gross Operating Profit Per Available Room. It is a good parameter for revenue managers to find new ways to increase revenue and plan their management efficiently. Another trend that can bring more hotel check-ins is ‘Mobile Marketing.’ Revenue managers need to take special care of hotel websites and mobile apps. A good user-friendly, optimized website filled with offers and discounts is the new hack to attract guests to the hotel.
A proper revenue management technique at the right place and the right time is the ultimate demand for hospitality business growth. With every innovation in the hotel industry, the opportunity scale becomes higher. Make sure you keep your revenue management system updated to the latest market trends. You can take some time to analyze how profitable it can be but delaying much is like ignoring a bag full of dollars, never do that. At Woodstock Digital, we aim to analyze data, predict demand, manage rates, inventory to maximize profits, optimize inflow of cash and more. Connect with us for further assistance on the Hotel industry, we make sure your hotel runs smooth, gain huge profits and fame in the market.