Every hotel management’s primary goal is to sell the right products and services to the right customers at affordable prices.
And with the improved technology, the hotel management can automate most of the tasks to produce standardized products. The revenue management software, particularly, has moved from on-premise to cloud-based applications, making its applicability easier than before.
In other words, these improvements have made it possible for multiple users to log in to the hotel applications from anywhere. So, let’s explore the benefits of hotel revenue management software.
In this free webinar about Humans & Machines in Hotel RM, we explain how to use technology to boost revenue. Watch it now to learn what you should be focusing on to improve revenue.
What Does Revenue Management Software Do?
Revenue management software is used to automate the processes of the hotel, using analytics to determine the right prices of hotel services.
Moreover, the revenue management software is also referred to as a yield management system.
As a result, it ingests the data collected over time by the business and compares it with the demand signal recommendations from different experts.
So, you should follow various tips while investing in a hotel sales strategy for effective revenue management. These tips include:
Study the Market
If you’re willing to effectively invest in revenue management for your hotel business, you should invest heavily in data collection.
This is the first step to understanding your competitors and gaining insights into your customer profile.
Embrace Forecasting
Forecasting is a key element for revenue-management strategies. Through forecasting, hotel management will be able to adjust the prices of the products accordingly.
Above all, you’ll also be able to map where demand comes from in your industry.
Optimize Distribution Channels
Optimizing your distribution channels gives your customers a real sense of the hotel.
Essentially, they demonstrate clearly what your hotel offers for the target audience. As a result, you need to optimize all your distribution channels for effective revenue management.
Data Collection
There should be well-structured data collection procedures for effective revenue management that will collect quality data for hotel management.
Consequently, most of the revenue management practices depend a lot on the right data collected.
This includes all the information you have gathered either about the guests or the statistics on the regional performance of other hotels.
Build your Ideal Guest Profile based on data analysis. All you have to do is fill out our free template with the information about your potential and existing guests, and voilà !
Competition Based on the Value
One of the biggest mistakes that many hotel owners make is optimizing profit by focusing on pricing alone.
So, for effective revenue management, the hotel owners should focus on competing based on the value of the products they’re offering.
What Are the Benefits of Hotel Management Software?
There are several benefits when using RMS at your hotel. Below, we list the top 9 benefits.
Processes Automation
Process automation is one of the benefits of hotel revenue management software that helps with positioning hotels in the market.
Therefore, with revenue management software, you’ll automate most of the hotel operations.
Consequently, you’ll no longer have to manually create reports and build spreadsheets needed to track historical data like occupancy by the end of the year.
Then, the employees will be freed to perform other operations that require strategic thinking.
Improving Net RevPAR
Hotel management’s goal is to increase the net revenue per available room. In other words, the amount collected should exceed the operating costs like labor and acquisition costs of the room.
In addition, the Net RevPAR index will show the hotel management how the revenue collected from the room has changed over time with the comp set.
Accurate Predictions
Accurate prediction is one of the benefits of hotel revenue management software that helps the hotel determine the demand that will be there in the next few days.
And that’s possible because the software gives accurate data on past performance history. As a result, hotel management can make accurate future decisions.
With precise predictions, the marketing strategies become easier.
Saves on Time
Effective time management is crucial when it comes to hotel operations. On the other hand, working data spreadsheets with calculations and recording analyses is a lengthy process that takes time.
In some cases, some data may be forgotten, leading to incorrect analyses even after spending a lot of time on them.
That said, time-saving is one of the advantages of the hotel revenue management software because your revenue teams only have to download all the reports at the end of the day.
Low Cost
Once you pay for the revenue management software implementation, you’ll only incur low-cost maintenance fees per month.
This ensures that you’re financially secure for as long as the software is working properly within the organization.
Hiring financial experts is expensive and can easily drain the capital to sustain the hotel’s operations. To clarify, the expenses that are used to cater to the financial experts can then be transferred to expand other sectors of the hotel operations.
More Environment Friendly
Imagine working in a very competitive market with so many customers without revenue management software. That means that, at the end of the day, you have piles of paperwork to deal with.
Therefore, with some records losing value immediately after the analysis, they have to be disposed of to avoid cluttering the hotel offices.
Cluttering leads to unnecessary hazards like fire outbreaks. One of the advantages of hotel revenue management software is that it’s more environmentally friendly.
You’ll work online, reducing the dependency on paperwork.
Improved Efficiency
To stay on the winning side of the hotel industry, you need to work on operational efficiency.
And that’s only possible if you use software that can handle large volumes of data from daily operations. In fact, improved efficiency is one of the benefits of hotel revenue management software.
With the manual approach that could have taken a lot of time, you can easily retrieve data from the systems and deliver it straight to the production process.
Intelligent Actions
After making accurate predictions, all you need is to act. This is where intelligent decision-making comes in, then. The revenue management software aids the process of intelligent action.
With the accurate data collected, you’ll eliminate all the guesswork in predicting the sales you’ll make at the end of the day.
High-level Monitoring
High-level monitoring is one of the advantages of hotel revenue management that ensures that the higher-ups are aware of all the processes in the hotel.
With this, any small drawback can easily be rectified to suit the production process and ensure that the revenue activities of the hotel run smoothly.
So, in case of any complaint, you can easily trace the source of the problem and fix it within the shortest time possible.
In episode #21 of the Hotel Cast Podcast, we chat with Khristina Quigley, Key Account Director at Hoist Group. Khristina shares valuable insights into what she considers to be the revenue road to hotel recovery. Listen now:
Top 9 Benefits of Using Revenue Management Software at Your Hotel
To summarize, effective revenue management is essential for every hotel because it helps the management to be aware of what to expect at the end of the day.
Fortunately, the above points summarize the nine major benefits of revenue management software for your hotel.
About the author: Eun Rockwell is a blogger and essay writer who works with A writer. Her focus is on writing on a wide range of subjects and following the best writing practices to prove her skills in this field and be rated as the best. Her hobbies are reading books and traveling.
