Intelligence, Speed, And Precision – The Role Of Dynamic Revenue And Price Management In The 2020s
Advertorial by Stan van Roij, Vice President – Hospitality Solutions & Program Management at Infor
Visioning a Post-COVID Era in Revenue Management — Special Series
As a new era unfolds anticipating a post-COVID world, we at Infor are empowering our customers to approach revenue management and pricing strategy in an adaptable and resilient way. In addition to supporting that mission in the light of the pandemic, we're continuing to develop the Infor EzRMS revenue management platform and Infor Hospitality Price Optimizer (HPO) to help organizations build their approach to disrupted markets and a changing industry, to make the most of their inventory, give them tools to find new revenue sources, and to shore up profitability.
Conditions have changed, but the goal has not
The competitive landscape as enabled by multiple channels to market is diverse and has speeded things up considerably. Organizations must adapt to that cadence and adjust accordingly, multiple times a day in most cases. As the pace has quickened and the competitive environments demand frequent adjustments during pandemic conditions, the object of selling and pricing strategies hasn't changed - to profitably sell rooms at an attractive price relative to direct competition for the remaining perishable inventory.
Accomplishing this goal isn't necessarily about cutting rates, which right now may be a temptation. It's about continuing to build competitive momentum to serve a target market and an ideal guest profile. A focused and profit-driven strategy means matching that focus to the right prospects on the right channels at the right time and at the right price. From there, success is determined by sustainable gains through earned and nurtured relationships with loyal guests. But to gain that momentum and keep it going, you need data and an integrated technology platform to get the clarity needed to turn data analysis into action right when it counts.
AI plays an integral role
AI functionality plays an integral part to making that happen. This functionality isn't a replacement to the strategic experience of revenue managers. It is a necessary addition to their toolbox, dynamically updating pricing and selling strategies as is required by quickly changing markets. Deep learning technology enables forecasting based on data-driven factors and provides a key means to anticipate what is likely to happen in specific markets.
Speed and precision are essential to responding to the forces that have so drastically impacted the industry during the pandemic. And there's also this to consider: the industry will eventually rebound. Anticipating that curve and being ready to respond in good time with confidence will be a make or break factor to success. Having that intelligence and the means to respond to it dynamically is the future of revenue management and the hospitality industry. In that, deep learning functionality and revenue and pricing management must go hand in hand.
Revenue management beyond 2020
Having the intelligence, speed, and precision to respond in good time relative to what the market will bear and in relation to direct competition is the key to resilience in the coming decade. We've written about what the 2020s will require of hospitality organizations in our 8 Ways Hotels, Resorts, and Casinos Can Achieve Resilience in the 2020s eBook.
In the meantime, the pandemic has been a disruptive force in the industry to say the least. But in efforts to compensate, our customers are also looking beyond our present times, using current challenges to inform the basis of a more sustainable future. That is all about being smarter, more integrated, and more adaptive to sudden changes in the landscape. We're dedicated to working with industry leaders to help them be resilient as revenue management and pricing strategy continues to play an integral role in creating strategic clarity day to day, while also helping to create an effective basis for anticipating what's to come.
Infor EzRMS is powerful revenue management software with capabilities to manage all aspects of hotel business, from walk-in to long stay. EzRMS automatically calculates demand forecasts for each future use of an organization"s hotel rooms, and recommends the appropriate selling strategies, such as open/close rates, stay controls, open/close room categories, and overbooking levels.product details
Infor® Hospitality Price Optimizer (HPO) is the 21st century hotelier"s smart, AI-driven helper that removes the uncertainty around setting competitive and profitable pricing. The solution automates pricing multiple times a day, helping hotel organizations increase revenue and profits.product details
Stan van RoijMore from Stan van Roij
Infor is a global leader in business cloud software specialized by industry. Providing mission-critical enterprise applications to 67,000 customers in more than 175 countries, Infor software is designed to deliver more value and less risk, with more sustainable operational advantages. We empower our 17,000 employees to leverage their deep industry expertise and use data-driven insights to create, learn and adapt quickly to solve emerging business and industry challenges. Infor is committed to providing our customers with modern tools to transform their business and accelerate their own path to innovation. To learn more, please visit www.infor.com.