Channel management is fundamental to hoteliers

Recent drops in currency value, increasing flight prices and recession-related job uncertainties have had a significant effect on the travel industry. Not only are fewer people travelling, but those who travel are becoming more budget conscious. Effective channel management can assist hoteliers with both issues – by increasing visibility and allowing for variable rate changes between seasons. Surveys suggest that the average hotel chain manages four separate third party channels, yet a failure to standardise data across the board can have negative effects. For effective channel management, an automated system is the preferred choice over manual upkeep, especially when increasing channel usage.

Today consumers compare rates in multiple price comparison websites and booking channels and selects lowest available rates of all. With channel manager revenue managers can more accurately forecast consumer behaviour and take effective pricing decisions for more online revenue. The challenge for many hoteliers in managing multiple channels to ensure accurate rates and inventory allocation to optimise each channel is very difficult. But with channel manager like RateTiger it becomes easier for hoteliers to take more effective pricing decisions.

What is Revenue Management?

Revenue management is a term that’s often thrown around the hotel industry, but what is it, exactly? Some believe that revenue management is all about ensuring a capacity of 80 percent or more at any given time, regardless of what it takes, but does this really equal good revenue management? Perhaps not. Instead, revenue management is about understanding past trends, having a good overview of the current market, sensibly forecasting the future, and addressing rates based upon these aspects combined. It’s about knowing what people are willing to pay, rather than what they want to pay, and not succumbing to cheaper rates for fear of not meeting targets. Overall, revenue management could be described as ‘the art of turning business away’.

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