We need to change our hotel business strategies every year to be updated and keep our sales on track. Again, there will be a need for updating our strategies for better hotel revenue management in 2020.
We need to have a proper revenue management strategy to surpass the challenges we are going to face in such competition.
We need to anticipate the demand and availability to gain the maximum possible financial benefits.
Basically, all this is the pat of the revenue management campaign.
Revenue management is the application of disciplined analytics that predict consumer behavior at the micro-market levels and optimize product availability and price to maximize revenue growth.
So when you go on to make your revenue management strategy, remember the following points.
It is very tough to get well trained, experienced and skilled revenue managers. This is an important position in your hotel.
You may be managing the revenue yourself or have a single professional or a whole team to do the task. You need to analyze the performance you are getting.
If you are performing the task yourself and you are getting what you want then its time to hire professional help. And if already have a professional or team then its time to make some replacements or increase the headcount.
Apart from this, you need to align your whole hotel to the task. The revenue managers cannot succeed if they do not have the support.
The hotel staff has to be taking measurements to contribute as much as they. They can help in stopping revenue leakage.
AI can assist you in revenue management to a great extent. It can analyze the market saturation, cost sensitivities, demand, competition rates to give you the best pricing.
AI and Data Science are all about reading the information and giving you a decision making data.
It will help your revenue managers in visualizing the data. This will save a lot of time your managers spend in the centralizing and concatenating of the data.
And also remove the human error.
Hence giving accurate and quick data visualization. And ultimately a better strategy revenue management in 2020.
Furthermore, AI will also help you to automate messages on social media platforms. Also, to update your hotel pricing on a global level.
Competitive Benchmarking is a practice that shows where you stand in front of your competitors.
The hotel industry is one of the most competitive industries and the competition will increase with the growing number of hotels.
Although the success of a hotel business largely depends on customer satisfaction, service improvements, and providing value for money, not keeping an eye on the competitors can be harmful.
Ergo the significance of competitive benchmarking is rising with exponential rates.
Benchmarking will allow you to analyze where you stand. In what fields you are ahead and where you need to improve.
As we are distributing inventory through several channels these days, the chances of mismanagement also have increased.
Inventory distribution is the greatest challenge in your hotel. If you want a better performance in 2020 then you better manage your inventory well.
Improper inventory distribution leads to Overbooking and Underbooking. In both cases, your revenue suffers.
Furthermore, if you have a allot your inventory to a channel that is non-performing then also your bear loses.
So you need to analyze all the channels that you list your rooms on. Allot inventory to those channels only that get you bookings. And only give them that much inventory they can sell.
Otherwise, you will be left with unbooked rooms.
Your hotel booking website plays the most crucial role these days.
These days hotels are in constant competition with OTAs. This is a fight to get most of the online bookings.
And your website is the one that gets you online bookings. So you need to test its performance as well.
Then you have to calculate the inventory you want to keep for yourself. Now, here is a need to hit the exact balance.
If you keep more inventory to yourself then you will end with unbooked rooms. And if you allot more inventory to OTAs then you will end up in giving more commission.
First month of this year is about to end. You would already have started the implementation of your revenue strategy.
During the process, you need to take note of the above points also for better revenue management in 2020.
We aspire to serve the hotel industry with our product QloApps and that process we have taken a step forward by launching the QloApps Forum. So please raise any of your issues on our Forum.
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