In an ever-evolving hospitality industry, staying ahead of the curve is crucial for hotels seeking sustained growth and profitability. One area that continues to play a pivotal role in achieving this is revenue management. Revenue management systems (RMS) are becoming increasingly sophisticated, and hotels must adapt to these changes to remain competitive. In this blog, we’ll explore the latest trends in revenue management systems and how hotels are adapting to these trends.
A recent article from Skift, “Hotels Still Slow to Adopt Revenue Management Tech: New Skift Research,” demonstrates the slow adaption rate shown by independent non-branded hotels to RMS technologies . According to the article, less than 10% of non-branded hotels worldwide are on a Revenue Management System – proven to optimize the property’s RevPAR performance if used properly:
- Data-Driven Decision Making
One of the most significant trends in revenue management is the shift towards data-driven decision-making. Hotels are now leveraging advanced analytics and artificial intelligence to analyze vast amounts of data, including historical booking data, market demand, and competitor pricing. This data-driven approach allows hotels to make more accurate pricing and inventory decisions in real-time.
- Dynamic Pricing
Dynamic pricing has been a game-changer for the hospitality industry. This strategy involves adjusting room rates based on various factors such as demand, seasonality, day of the week, and even the weather. Hotels are using RMS to implement dynamic pricing, ensuring they can maximize revenue during peak periods and maintain competitiveness during low-demand periods.
- Personalization
Guests today expect a personalized experience when they book a hotel room. Revenue management systems are helping hotels tailor their pricing and offers to individual guests. By analyzing guest preferences and booking history, hotels can offer personalized packages, room upgrades, and promotions, enhancing the overall guest experience and increasing revenue.
- Channel Management
The distribution landscape for hotels has become increasingly complex with the rise of online travel agencies (OTAs), metasearch engines, and direct booking channels. RMSs are helping hotels manage their distribution channels more efficiently, ensuring that rooms are sold through the most profitable channels while maintaining rate parity and minimizing overbooking.
- Forecasting and Predictive Analytics
Advanced forecasting and predictive analytics have become integral to revenue management. Hotels are using RMSs to accurately predict future demand, allowing them to adjust pricing and inventory accordingly. This proactive approach helps hotels capture revenue opportunities and avoid revenue loss due to underpricing or overbooking.
- Competitive Intelligence
Keeping an eye on the competition is crucial in revenue management. Many RMSs offer competitive intelligence features that allow hotels to monitor the pricing and strategies of their competitors in real-time. This enables hotels to adjust their rates and promotions to stay competitive in the market.
- Sustainability and Eco-Friendly Practices
Sustainability is a growing concern in the hospitality industry. Some hotels are now using RMS to optimize energy consumption and reduce waste. By offering eco-friendly packages and incentives, hotels can appeal to environmentally-conscious travelers while also improving their bottom line.
Hotel Adaptations to These Trends
To harness the power of these latest trends in revenue management systems, hotels are making several adaptations:
- Training and Skill Development: Hotels are investing in training their staff to effectively use RMSs and make data-driven decisions.
- Integration with Other Systems: Hotels are integrating RMSs with other hotel management systems, such as property management systems (PMS) and customer relationship management (CRM) systems, to ensure seamless operations.
- Collaboration with Technology Partners: Many hotels are partnering with technology companies specializing in revenue management to stay at the forefront of industry trends.
- Continuous Monitoring and Adjustments: Hotels are constantly monitoring their RMSs and making adjustments based on the insights and data they generate.
Conclusion
Key Hotels and Resorts embraces the latest tech trends in the area of Revenue Management Systems. Our hotels are leveraged with the latest RMS technologies. With KHR RMS technologies, our hotels’ hotel rates fluctuate per room type multiple times per day dependent upon several external inputs – giving them a competitive advantage compared to the majority of independent hotels not utilizing this tech trend. To learn more of our hotel marketing solutions suited for independent hotels, please contact us at info@keyhotelsandresorts.com. To learn more, please visit us at www.keyhotelsandresorts.com.
John Lacle, Managing Director
Key Hotels and Resorts
October 7, 2023