Jan 21, 2022 | Revenue Management | Reading Time: 6 minutes
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.
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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 the 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:
Studying the Market
If you’re willing to invest effectively in revenue management in 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 traits.
Forecasting is a key element for revenue-management strategies. Through forecasting, the 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.
Optimizing 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 distributions channels for effective revenue management.
There should be well-structured data collection procedures for effective revenue management that will collect quality data for the 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 the other hotels.
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Competition Based on the Value
One of the biggest mistakes that many hotel owners make is optimizing profit by focusing on the 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.
Process automation is one of the benefits of hotel revenue management software that helps in positioning the hotel in the market.
Therefore, with the revenue management software, you’ll automate most of the hotel operations.
Consequently, you’ll no longer have to manually create reports and build the spreadsheets needed to track historical data like the occupancy by the end of the year.
Improving Net RevPAR
The hotel management’s goal is to increase the net revenue per available room in the organization. In other words, the amount collected should exceed the operating costs like labor and acquisition costs on 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 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 the past performance history. As a result, the hotel management can make very accurate future decisions.
With accurate 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 calculators and writing down the analysis is a lengthy process that takes time.
In some cases, some data may be forgotten, leading to wrong 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 will only download and print all the reports at the end of the day.
Once you pay the cost of the purchase and set-up of revenue management software, you’ll only incur low-cost maintenance fees per month.
That makes sure that you’re financially secure for as long 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 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.
To stay on the winning edge in the hotel industry, you need to work on the efficiency of all operations.
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.
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 guesswork in predicting the sales you’ll make at the end of the day.
High-level monitoring is one of the advantages of hotel revenue management that ensures that the management is aware of all the processes in the hotel premises.
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 keeps the owners aware of what to expect at the end of the day.
Fortunately, the above points summarize the major nine benefits of the revenue management software in your hotel.
About the author: Eun Rockwell is a blogger and essay writer who works with A writer. Her focus is on writing in 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.