Effective revenue management is the key to maximizing profitability for any hotel business, ensuring rates are optimized as per the seasonal peaks and valleys for meaningful occupancy figures. As you delve into the nitty-gritties of the process, it becomes more sophisticated and the calculations become more complex. Hotel owners and managers are increasingly turning to automated revenue management systems to ensure they get this balance just right.
The Benefits of Automated Revenue Management Systems
Implementing an automated revenue management system is not simply the process of installing a new computer or changing the pricing algorithms. It aims at giving revenue managers and hoteliers a clear vision of the relevant data to bring more accuracy and consistency with rate strategies to successfully achieve revenue targets.
Even in its first year, implementing an automated revenue management system can increase income between 3 and 6 per cent. Yet for some businesses that increase can be even greater.
But it is not just in terms of simple pricing and revenue that automated revenue management systems can be effective.
The system can also manage across chains to push targeted segments into sites that are experiencing a fall in demand and identify market changes on a much more immediate level enabling the entire business to adapt quicker and remain competitive.
Further, the use of such systems are beneficial to the business since they reduce the turnover and increase the effectiveness of Revenue Managers as basic forecasting and resource management becomes an efficient task.
The way forward...
Choosing the right automated revenue management system is the key - however to maximize the effectiveness of such a system it is essential to have buy-in from all relevant members and a keenness to adapt to the new way of working to leverage meaningful returns.
Hotels with automated revenue management systems can reduce a huge chunk of workload of their revenue managers than the properties without an automated system. To anticipate and understand the consumer behavior in today’s fast moving and rapidly evolving business environment it is better to implement automated system for better revenue management.
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