Revenue Management In 2018: Top Trends Hotels Must Follow This Year
It is amazing to notice how the hospitality world has been changing with time. Before the arrival of Online Travel Agents (OTAs) and several other digital marketing strategies, hotel chains were ruling the sector. Revenue management of independent as well as small hotels was focused on accommodation and price. But the modern-day revenue management has changed, and it is more than just room availability and rates.
In the last few months, I have met several hoteliers during digital marketing events who were convinced that an effective revenue management strategy can boost the hotel’s business. But I found many hoteliers scratching their heads when they were told to modify their current revenue management strategy. One of them asked, ‘why do I need to follow a new trend when the existing ones are working well for my hotel?’
The modern hospitality industry is different from what it was a few years ago when only big players were generating more revenue than others due to their popularity among guests. Unlike before, independent hotels have been giving tough competition to major industry players, thanks to advanced revenue management strategies. Although revenue management has been appreciated by hoteliers since last few years, it has evolved dramatically and its trends are changing rapidly. By adopting new revenue management changes, a hotel of any size can manage demands and generate more revenue. We have already entered in 2018, which is predicted to be the best time for hoteliers to be a part of rapidly-moving industry and take benefits of new revenue management trends.
Technology Shift: Increased Presence of Automation
With time, more sectors have been utilizing advance technologies in revenue management to avail its benefits. In hospitality industry, the technology influencing revenue management has been changing rapidly. Revenue management strategy that includes automation is more beneficial than a strategy without it. Automation improves efficiency of revenue management and helps make more profit. Using it, revenue managers can develop more effective strategies driving profitability.
Direct Booking: Encouraging Guests to Book Accommodation Directly
Revenue managers can increase brand value and generate more business by encouraging guests for direct booking through the hotel or its official website. Although online travel agencies (OTAs) are a great source to gain attention of potential travelers, direct bookings are more profitable for a hotel. Direct booking increases the chances of repeat business.
To boost direct bookings, revenue managers must focus on highlighting benefits on the official website. The would-be guests should be told that direct booking is more profitable than an OTA.
Profit Management: Increased Focus on Profit
More revenue managers today admit that profit management should be provided special attention while planning a revenue management strategy. It is important because hoteliers have shifted focus from traditional key performance indicators (KPIs) of generating revenue to new methods to earn profit. Gross operating profit per available room, also known as GOPPAR, is KPI today, which focuses on profit. It also allows revenue managers to continuously look for new ways to increase profit while keeping profit management in mind.
Mobile Marketing: Increased Interaction and Booking
Smartphone isn’t just a communication device, and plays a major role in promoting a business. In 2017, hospitality industry has experienced a significant increase in mobile interaction and bookings through a hotel application. Mobile marketing will make revenue management more beneficial for a hotel. Online sources accessible through a smartphone will generate more business and improve guest engagement. Revenue managers should focus on making the hotel’s official website and other platforms over the Internet more interactive and easily-accessible for online customers. In addition, the websites should be updated regularly to deliver high-quality services.
Data Metrics: Efficient Use of Data
A hotel may have a large amount of data to work with. But there should be a strategy to leverage it. Revenue Management strategy of a hotel should include different tools to make the most of available data. Using data efficiently can help revenue managers drive profit for a hotel.
Revenue Management is an effective way to generate profit. This year too, it will help hoteliers with its action-packed techniques to win more customers and make more profit. All that a hotel should do is ensure that its revenue managers are following the latest trends of revenue management.
If you want to learn and grow your business with the help of social media, join this thriving community for interesting discussions: https://www.facebook.com/groups/1927514324182846/?source_id=1521825604798754