Do we need a new revenue management toolkit for 2021?
— 18 experts shared their view
It is no longer news that the hotel industry has suffered the worst decline in history. The resulting business failures are starting to make the news and most industry experts agree that it will be several years until the industry returns to anywhere near the health it had in 2019. While the global picture is still very gloomy, we are starting to see isolated upticks in reservations. However, whether it is traveler's slowly adjusting to the "new normal", or just pent up leisure demand, the booking patterns are different than ever before. And just like the periods following previous disruptions, the most aggressive and innovative hotels will gobble up all of this trickle of new travelers, leaving most hotels still staring at the horizon, looking for signs of life. Although there will be few winners and mostly losers during the early stages of the recovery, most hoteliers are still working with the exact same set of tools they had, pre-pandemic, including over half of the industry that uses no dedicated revenue optimization technology whatsoever.
So, we ask our panel experts: 1) For a hotel just getting started implementing a revenue optimization process, what technology and services are most essential, and how should they be selected? or 2) For a hotel with an established revenue optimization culture, what new tools have emerged that could be game-changers?
Managing Principal, ZS
Revenue optimization technology, particularly the core RMS system, was critical to long term revenue success pre-pandemic and it will remain so as we move into the recovery. Even with continued low demand and changes in segment behavior, it is impossible for a person to manually manage the complexities of a dynamic marketplace. Now that the initial shock of the crisis has past, these systems have had time to adjust, and they can detect small pattern shifts across a larger horizon than an even-more-overworked-than-usual revenue manager can. see more
What has changed, and will continue to evolve as we move into the recovery and "new" normal, is the data you rely on to inform both strategy and tactics. The systems and the revenue managers should be relying on recent past and forward looking data as opposed to historical demand patterns. A revenue management system is essential, and I would also recommend working with a data provider that can give you some forward looking insight into market behavior, especially pricing and demand, in an easy to consume, highly visual format.
Corporate Director Revenue Management Palladium Hotel Group
Scenario 1 - In the first steps of implementing a revenue management structure i think you need to focus on the basics with a clear goal in your mind … try to eliminate manual processes. see more
Per example, try to incorporate a Shopper Software which helps you avoiding this manual process to see your competitors Rate, this is probably the best technology (apart for the RMS) who help you save time.
Try to incorporate an RMS solution or an RMS Assistant who helps you in having all the important information together and if you don't have the budget enough to afford an RMS, at least try to build something on your own with a BI platform like Power BI in order to collet and show your data in a simple way.
Another very affordable platform would be a benchmarking tool, so this is also a mandatory system if you want to start a revenue management plan.
With that tools ... you have controlled two main aspects of your revenue strategy, your data, and your competitor data so the rest it would be easier.
Scenario 2 - If you are in a hotel with a revenue management department fully established I would recommend a new cool tool who can provide you big and smart data from the destination where you are in.
They are called big data for Smart Destinations and I would recommend because never like now we must have information about our guest but also about our markets, source ond origin ones.
These new tools give you the opportunity to reach information about the destination like air travel capacity, air tickets prices and so on … this information is pure gold and you can have per origin market or source.
This could be a game changer tool for you and your company
Non-traditional Revenue Manager & Consultant
With first countries having announced Covid-19 vaccines to launch as early as next week (UK) or next month (Belgium), there is light at the end of the tunnel and we can expect demand to (slowly) return to certain markets. As initial demand in your market will be limited, it is essential to position your hotel to gain a maximum market share. Whether your hotel is just starting with revenue optimization or has long practiced revenue management, now is the time to reevaluate your entire hotel tech stack and make sure it is the best fit for your hotel and your market. Make sure it gives you that competitive edge. see more
While it should not be necessary to mention this, but a sophisticated PMS is the basis of (almost) everything. A great PMS will allow your hotel to work more productively and solid rate management will help your offers stand out.
Speaking about offers, of course, you need a top-notch booking engine.
Did you know that up to 80 percent of your OTA guests had visited your hotel website at some point? Why did they not book directly but via OTAs instead?
Making sure your booking experience matches that of OTAs, e.g. by residing on your hotel domain instead of some third-party vendor's domain, or a true mobile-first approach (the majority of traffic is mobile, this should be reflected in your bookings!), easy communication via live chat, etc.
A poor booking experience is a major reason why guests chose to book on OTAs instead of directly. And of course, once they visit that OTA site, they will see all your competitors and there goes your market share...
So who are your competitors? While this was a relatively easy question pre-pandemic, how has this evolved and how will it continue to evolve? With corporate and group demand basically gone, how are your compsets going to evolve?
Defining your compset will be something that will not only be a more thorough process, but it will likely evolve dynamically.
Keeping a very close eye on your competitors and your overall market is going to be absolutely crucial. And this is not just simply monitoring their prices. You need a really good understanding of their entire offers, inclusions, length of stay, rate evolution, etc.
Your need a rate shop and business intelligence tool which allows you to do this effectively or even automatically.
Business intelligence is something that most hotels have already not utilized effectively (if at all) pre-pandemic. And while previously a lot of our decisions and strategy were based on historic data, this will now almost entirely shift to forward-looking data.
Data (e.g. from PMS, CRS, booking engine and web analytics, etc.) needs to be consolidated and presented in a way that allows you to make the right decisions efficiently.
There are plenty of additional tools that will benefit your hotel. From CRM to review management and so on.
Finding the right technology is time-consuming and time is running out. There is no one product fits all kind of solution to this question but rather which product works best for a specific hotel with a specific team.
But a first-to-market approach is so important as you will otherwise fall behind your competition.
If you are in the fortunate position to have experienced talent in-house, make sure to provide them with the necessary resources to go through the entire selection process with all the interviews, demos and RFPs. And if you don't have anyone to take care of this for you in-house, consider getting external help.
Make sure you get this market share!
PS: If you and your team are still working with only one screen, make sure to get a second one ASAP. Your productivity will go through the roof!
Program Director, Master’s Degree in Hospitality Strategy and Digital Transformation at Les Roches Global Hospitality Education
We have all heard the proverb “Necessity is the mother of invention”, but in today's post-Covid, hashtag world, #DistressDrivesInnovation might be more to the point. This is clearly the case for hotel revenue optimization tech. I am proud to say that after attending the first two days of the Hospitality Marketplace Online earlier this week, where more than twenty of the industry's leading revenue management and distribution technology providers came together in an online speed-dating format to show off their latest stuff, it is clear that our industry's brightest have taken advantage of the forced downtime to re-evaluate and often completely redesign their approach to helping hotels make more money. see more
There were common themes, like: “…since COVID, all of your history is garbage except last week's, maybe…” and thus the need to decrease reliance on history and incorporate forward-looking data, but there are many different approaches. Here are some of my most important take-aways:
For the newbie to revenue optimization, the first consideration should always be the complexity of your hotel and your existing business processes. Starting with your PMS (if it is not cloud-based… come on!), it is critical to avoid functionality and processes that you do not need or do not have the manpower to support. Many smaller hotel operators have been wooed by the prospects of huge upside from a complicated system, only to have 50% of its functionality lost to “skill atrophy” after the first cycle of turnover in the hotel.
Some of the solutions presented are perfect for any size hotel, like channel managers, that automate existing, time-consuming processes. Others specifically target the small hotel operator, by consolidating data from a wide variety of sources using cool visualizations or brief daily “hot date” emails that allow the user to digest the most important information very quickly, without requiring detailed analysis.
Newbies should also get some help assembling the right combination of tools. The current environment is very fragmented, which means lots of innovative solutions and continual downward pressure on cost, but it also makes the task of assembling the optimal technology stack similar to buying a car by going to an auto parts store with a very long list. If you do it right, you will get the perfectly matched vehicle for a good price, but how many of us would even know where to start? DON'T RELY ON THE VENDORS. There are revenue management consultants and people dedicated specifically to aggregating the technology who can help.
For those who are already in the game, emphasizing forward-looking market data (and letting go of trying to make sense of your history) is a must. Several providers are combining internal hotel and market data with external data like flight and competitor searches to help hotels highlight opportunities while there is still time to take advantage of them. And be sure that your existing channel manager is constantly looking to connect you with new distribution partners. Consumer booking behavior has changed drastically. Someone is going to figure that out soon and you'll need to be able to connect to it to take advantage of it.
CRME, CHIA, Senior Vice President Revenue Management at Crescent Hotels & Resorts
The current pandemic will certainly have a long term shift in how we satisfy future demand. While there has been a lot of discussion around how it will evolve, it is still too early to figure out how things will materially change, and as such, technology has not caught up to it. New enhancements and development investment will also be muted for some months to come. see more
For hotels just getting started in the process, it is important to select a system that better fits the hotel's needs and services, aside from maximizing overall revenue. Here are the 3 key things to evaluate in this new environment:
- Connectivity: with reduced staffing in operations and revenue strategy, it is critical that all systems have seamless two-way connectivity to reduce the manual labor for the property associates.
- Analytics and reporting: we have become more dependent on data. The best revenue optimization systems need to have on-demand reporting flexibility to be able to answer any questions on trends, pick up, analytics insight, etc.
- Value: eventually it all comes down to return on investment. Operators need to be able to justify both the initial cost of integration as well as the long-term maintenance cost. Will they pay off even in this environment, or should they look at a longer play knowing this is the least disruptive time to implement. Either way, the investment is well worth it.
CEO of RoomPriceGenie
JFK is quoted as saying that "a rising tide lifts all boats", and this has been true during the large year-on-year growth of the hospitality industry in the decade up to early 2020. But the falling tide? That leaves some boats stranded on the beach. And this is the situation we are in now. see more
While sophisticated revenue management was a nice-to-have for independent hotels during the boom years, we would suggest that is essential during times of more sporadic demand. The lower demand, added to consolidation and the rising power of chains, has meant that the situation for independent hotels is harder than ever.
At RoomPriceGenie, we focus on the hotels either getting started in revenue management or those looking for a more intuitive approach.
We would say that the most important factor in making a decision about what tools to use is: how comfortable with these tools is the person in charge of revenue? Remember, the tools work *for* you; they don't rule you! And this is more important than ever in these harder times, where strategic judgment needs to come in and it is important to implement the strategy alongside the number-crunching.
So certainly find a revenue management system that you are comfortable with, that follows your strategy but does the calculations for you, allowing you to react quickly to changes in demand.
Director at Revenue by Design
For hotels starting out on optimisation the good news is there are far more affordable choices of RM systems, so no excuse for Excel files. Revenue management needs differ by hotel size and location. Do you have the in-house skills to manage a revenue optimisation process or should you consider outsourcing? What outcomes do you need? Performance reporting, forecasting, and a pricing tool? Or a data analytics system that fully integrates with your distribution partners? At the very least, aim for automated reporting for business visibility, market pricing from a rate shopper, and ideally participate in a market benchmarking report. see more
For properties operating with an established revenue optimisation culture, new tech tools alone will not be game-changers in the very short term, but there is a need to change the game. Revenue optimisation is being critically reviewed by many hotels who want to understand how they can do (a lot) more with less. Innovation is key to a successful exit route from COVID. The challenge is to deliver on that.
There are typically huge inefficiencies in the revenue manager role where simple mundane tasks sit alongside the need to interpret complex data sets and drive profitable strategies. Hotels need to unpack the role. What can be taken over by more cost-effective outsourcing or efficient automation of repetitive tasks through AI? Who is best placed to manage and apply the broader commercial drivers? The role needs to add value through innovation and commercial expertise; whether that has a revenue manager name tag on it will not always be the case. Any technology that enables the delivery of the integrated marketing and commercial requirements will be a game-changer.
Founder and president of Revenue Matters
For individuals new to the concepts of revenue optimization, the first step would be to understand the breadth and depth of what is involved. Hint, it goes far beyond pricing. Work alongside an expert until you are ready to fly solo. see more
For properties with an established revenue optimization culture, realize that the world has shifted around you. To be competitive, you need to identify and capitalize on emerging trends quickly. You can't do this by looking in the rearview mirror or by operating in a manual environment! Forward-looking technologies and reporting will help you "see through the fog."
Revenue & Commercial Strategy and Founder of Federica Salvatori Consulting
In this time it is crucial for hoteliers to get into the Revenue optimization and the implementation of the correct set of tools can make it possible. see more
The very first step for this process is to get automated and let the machine doing the manual tasks hotels still do with an enormous expenditure of time: extracting data and putting them together in an excel file, updating inventory and rates in multiple systems
So, it is essential to implement:
- a Channel Manager interfaced with the hotel PMS
- a Business intelligence providing the main reports
- an automated RMS, powered by AI, which collects data (internal and external), analyzes them and makes recommendations by using algorithms.
- Market intelligence: Rate Shopper, with price positioning in the compset and market share tool, important to analyze the market, the competition and the demand, and to make the right strategy or tactical adjustment
These tools should be cloud based, agile, easy to connect. The most important aspect to consider is the integration with the other revenue tools, and the willingness of the partners to work together.
The future of hospitality will be customer centered, therefore the game changer for hotels with an established revenue optimization culture will definitely be innovations which analyze the customer behaviors and personalize their experience: advanced CRM, BE and website with targeted messages and offers.
Moreover, the RMS with sophisticated algorithms powered by AI and ML, which predict the demand in a granular way and act on pricing at micro level.
Chatbots to increase conversion and upselling softwares to generate incremental revenue.
Finally, the tools and channels helping distributing in a more sustainable way by looking at acquisition costs and therefore at profitability.
Adjunct Professor NYU Tisch Center for Hospitality and Hospitality & Online Travel Tech Consultant
Let's remind everyone what the primary goal of revenue management (RM) is: to ensure that the property sells the right product to the right customer at the right time for the right price on the right channel. Typically revenue management systems (RMS) and revenue managers use historical, comp set pricing and market data and combine this with forward-looking demand signals like pacing to recommend the optimum rates. see more
Now that historic data has become completely irrelevant, I believe comp set pricing data has also diminished in value - how sure are you that your competitors are smart in their revenue management (RM) practices and use the right RM tools and not just plagiarizing each other's rates in a suicidal downward spiral?
In the current environment, I believe the role of forward-looking demand and BI on future demand has been elevated to unprecedented importance. This is why I am excited by TripAdvisor's new Spotlight BI product, and especially its Market Spotlight feature, which allows hoteliers to anticipate future demand by utilizing the scale of Tripadvisor, combined with other important travel data such as flights, alternative accommodation, and others and maximize RevPAR by taking precise action based on expected demand for future stay dates.
Due to its colossal website traffic, TripAdvisor has mountains of intent data and is one of the very few digital entities out there that can not only predict but also generate travel demand.
For hotels new to RM practices, I recommend a) Implement a cloud RMS with strong forward-looking demand capabilities, typically priced on a per-room/per month (PRPM) basis and low or no upfront costs, b) Subscribe for a forward-looking demand BI like TripAdvisor's Spotlight BI, and c) Consider contracting with an RM consultancy to kickstart your RM practice.
For hotels with established RM practices, I recommend that a) Do not fire your revenue manager - now you need him/her more than ever; b) Evaluate your existing RMS and its forward-looking demand data feeds and capabilities, as well as any irrelevant pre-COVID business rules, and c) Review your revenue management BI subscriptions and give priority to the future demand BI one
If you are a hotel just starting out with revenue management technology, congratulations! When I was a revenue manager, I know how excited I was when I got my hands on technology that enabled me to move from coding spreadsheets and building graphs to strategic revenue leadership and decision-making. There are a lot of choices today, and luckily sites like hoteltechreport.com/revenue-management/revenue-management-systems and others make the selection process easier. Especially in the current environment, I would ask myself these questions: see more
- Do I want a revenue GPS or a map, or in other words, do I rely on “revenue science” to make automated pricing decisions for me, or do I want to rely on a manual, rules-based approach?
- Do I want a reporting or BI tool to generate reports and charts or a real revenue solution which forecasts, prices at both the hotel, room-type, and rate-code level?
- Which technology has the most depth and breadth? How many integrations? What is the path to add capabilities as my sophistication increases?
- What is the expected longevity and stability of the company I am choosing to partner with? What is the track record, financial backing, and “survivability?”
For hotels with an established revenue optimization culture looking for next-gen tech, congratulations, too. Although the industry is suffering incredibly, innovation is not standing still. Not only are we moving into a world where profit optimization, total revenue management, and operational forecasting are being added to the revenue management tool kit, the biggest shift will be the emergence of flexible, highly scalable platforms which will enable hotels of any size, shape, and sophistication to take advantage of the science.
Not only will these platforms power revenue and pricing decisions, but their optimization engines will also enable commercial leaders to pull all the levers they have at their disposal to generate, convert and optimize their business with a higher degree of sophistication than ever before. The most forward-looking hotel brands are investing in these new capabilities today, so when demand gains strengthen again, they will be in the winner's column.
There are a few Revenue Management software solutions being offered on the global hospitality tech market today. They are all aimed to solve the same problem (assist hotels with strategic revenue management decisions and improve operational efficiency) but they differ in many aspects: the amount of functionality they offer, the sophistication of the forecasting and optimization algorithms as well as the type of hotel customers they cater to. see more
For hotels that are just getting started implementing a new RM automation process, my suggestion would be to, first of all, steer away from viewing this project as a cost. It is not a cost, it is an investment that has a huge ROI associated with it. So "price" should be the last thing you consider in your decision-making process.
Instead, analyze available RMS offerings using the following criteria:
- Will this solution help you solve your business and Revenue Management needs, or is it packed with features you will not use or, on the other hand, lacking important aspects of functionality?
- Is the product user-friendly and intuitive and does it offer flexibility in "automation" vs "manual user involvement"?
- Is the RMS solution based on modern methods of data analysis, forecasting, and optimization or does it use a conservative approach that was relevant decades ago but not relevant in the modern dynamic world?
- Is technology in the cloud? Will it allow for flexible and continuous updates and improvements to the product offerings?
- What are the company's plans in regards to future investments in their technology and algorithms?
For hotels with an established Revenue Optimization culture, I would also recommend looking at the list above and understanding whether your current provider meets your needs and whether they are able to properly support you as the industry recovers while being agile with their development path.
COVID-19 has flipped the more traditionally relied upon revenue management practices upside down. The sudden unreliability of on-the-books (OTB) data and year-over-year (YOY) trends for forecasts has been one of the biggest shifts revenue managers have had to make in 2020. Not only has the day to day changed for revenue managers and hoteliers, we've seen that the entire industry has been disrupted. I believe the key for an industry recovery from this crisis is to drive decisions informed by actionable, high-quality data - specifically forward looking, top-of-funnel data sets. see more
So, what do I mean by forward looking data? For years, innovative industry leaders like Google, Amazon, Netflix and Apple (to name a few) have leveraged top of funnel data to better understand consumer behavior. Now with new pre-booking upper funnel data, the hospitality industry can better capture market demand. Upper funnel data consists of many factors, including the volume of searches for flights and hotels on search engines and OTAs offer insights into upcoming demand in a given market.
With the absence of bookings, these figures give revenue managers an idea of traveller intent. Length of stay (LOS) inquiries are similar in that they give hoteliers a heads up on the booking patterns they can expect. The geographical origin of demand for a given date should also be part of top-of-funnel data a hotel examines. It shows when certain source markets are most active. Finally, the competition's public pricing in the future as well as any knowledge of groups they've signed helps formulate a complete picture.
By analysing the above points, Revenue Managers and hoteliers are now able to anticipate future market behaviour and take targeted action to drive revenue and increase profitability. I'm convinced that Hoteliers who weigh pre-booking, upper-funnel data more heavily now than historical data will come out stronger because they will be able to bring together revenue and marketing strategies for greater market share.With travel restrictions changing daily/weekly/monthly, we'll continue to see demand fluctuations.
But with new forward looking data sets found in solutions like Market Insight, teams can establish a high-level strategy based on a complete, holistic picture of their market. Revenue Managers can now spot real-time market trends 365 days ahead, enabling them to budget plan and optimise both for the short and long-term.
For example, revenue managers can inform their strategies by understanding the potential demand for their hotel, e.g. what the most popular dates for travel are; how long guests are looking to stay, on average; and so much more. They can then compare these numbers to your competitors inside and outside of your market and your traditional comp set. This top-of-funnel data helps hoteliers better understand how they're positioned across various booking channels as compared to the lodging businesses they compete with.
With little pace and pickup visibility, hoteliers and Revenue Managers currently using standard or traditional tools and methods are struggling to determine an accurate forecast. But by starting with top-of-funnel data and then building a strategy around capturing those guests, optimising promotions and measuring conversion, hoteliers can ensure they're capturing their fair share of whatever demand might be coming into the market today, as well as the surge in demand when it arrives in 2021.
In order to succeed, any hotel revenue optimization program has to be not only data-driven, but, at a time when hotels are more resource-constrained than ever before, it also has to deploy tools that are time-efficient and cost-effective. see more
RMS – nice to have in 2021
Having been designed to increase rates in parallel to pace and demand going up, AI and Machine Learning revenue management technologies did not live up to the hype in the face of an unprecedented crisis, when the coronavirus swept the globe and decimated demand in the travel, tourism and hospitality industries earlier this year. They will ultimately learn, adapt and recover, but if 83% of the world's hotels can survive without them, so can yours – until you have enough business on the books (OTB) to justify the investment.
BI – essential in 2021
Stop wasting time creating manual Excel reports and deploy a good Business Intelligence tool to automatically collect the data from all your hotel's disparate systems and revenue streams (PMS, CRS, F&B, etc.) into a single unified dashboard. By eliminating data silos and having better, faster, more accurate reporting, you will speed up decision making and increase collaboration across revenue, distribution, sales, marketing, operations and management teams.
3 questions to ask before you buy:
1. Can it automatically generate pickup reports?
2. Can I access it from multiple devices, e.g. on my tablet?
3. Has it been developed with hotels in mind?
Rate Shopper – essential in 2021
Consider using a solution that not only tracks comp set rates, but crucially also monitors competitive visibility and guest reviews.
3 questions to ask before you buy:
1. Can I customize the guest point of origin (Point of Sale) based on my hotel's source markets?
2. Does it show prices from Booking basic?
3. Can I compare my competitors' OTA ranking and visibility?
Market Intent tracker – nice to have in 2021
Intent data (e.g. Google trends, OTA browsing history, etc) can indeed predict travel demand in normal market conditions, but right now many of us are window shopping on travel websites, daydreaming of the the day when board a plane to a sunny destination, instead of actually intending to travel or booking anything. This will change by this time next year, after we are all vaccinated, which is when such tools should become quite useful. Maybe something for your 2022 budget.
Revenue & Distribution Strategist
Any hotel that is just embracing revenue optimization technology or opening a new hotel must review its needs from the system. A revenue optimization system can help an asset look at data differently and granularly when combined with pace. see more
First and foremost a system that can forecast given current environments will surely be seen as delivering the best possible value. If a system is user friendly and requires less training and management, then it helps the hotel (s) focus on getting the best out of the system and use fewer resources. Go for the technology that is supported by a company that has depth in statistical and mathematical computations and has good ratings amongst hotel groups.
Some of the key trends worth investing in;
- Predictive attribute-based and product-based pricing that focuses on profit
- Total Revenue Management – Has been around for a long, but the need of the hour to embrace it and move forward
Corporate Director of Revenue Management at SHR, Sceptre Hospitality Resources, LLC
All hoteliers, whether just getting started with revenue optimization or already operating within an established RM culture, need a new revenue management toolkit for 2021. Our industry is notoriously slow to adopt new technology, and our current market situation should serve as a catalyst for *everyone* to re-evaluate their previous approach. For hoteliers that hadn't implemented a true revenue management process, or perhaps now find themselves without the staffing levels to support what was in place, the most essential piece of technology to add will be an RMS to consolidate their data into quick insights, provide forecasting for finance and operations, and utilize the latest machine learning techniques to automate their pricing. see more
The more hoteliers can take advantage of technology to handle their day-to-day, the more able they are to free up their limited human capital for the strategic management that will be critical in navigating recovery.
Hoteliers who are already working within an established revenue optimization culture would do well to evaluate new players in the marketplace for systems they already utilize. The time is now for tackling larger implementations projects, not once demand has begun to normalize. The potential game-changer for these hotels is not one specific tool, but to move beyond the lip service we always pay to "breaking down silos". A deeply integrated CRS/RMS/CRM, combined with new functionality like Google Pay Per Stay and other top-of-funnel marketing, will provide a holistic approach to loyalty and tailored guest offerings that gives these hotels the best positioning to shift share and drive profitability.
Revenue Management Expert
Revenue managers should focus on the cost of distribution, forward-looking data, and revenue generation. When demand is low, the cost of distribution is even more critical. Revenue professionals should work on shifting share from OTAs to the brand.com. Driving traffic to the hotel's website is vital, but it's not enough. Conversion is the key. New technologies can help segment website traffic and target visitors with custom offers while also persuading them to book directly (The Hotels Network, Triptease). An automatic room rate negotiation solution for the brand.com that allows customers to suggest the stay price and utilizes a demand-driven approach to pricing is a must for revenue managers in 2021 (PrivateDeal). see more
Forward-looking data about the market and competitive set should become a new standard for making effective and timely decisions (Forward STAR, Travel Click's Demand 360 & Revenue Strategy 360, OTA Insights). COVID19 changed everything, and we can no longer rely just on historical trends.
Revenue leaders should expand revenue streams. With attribute-based pricing, hoteliers will be able to sell every room attribute (floor, view, bed type, etc.) and additional experience (breakfast, late check-out, tour, etc.) separately. Moreover, attributes can be dynamically priced based on demand, increasing total revenue (SynXis BE). Upselling is vital, like never before, and some solutions help upsell and purchase additional services before the guest arrives at the hotel (Nor1, Oaky).
1) If you are getting started you need a system that grows with your capabilities and takes you further, ie. understands where you are in your analytical cycle and then takes you along the journey to make you better, to help you get better at what you do. This is not about x number of people looking at the same visualizations and then you get 100s of different outcomes as everyone is making up their own assumptions. It is about software hyper-personalizing the experience of the analysis and assisting the user to get better at what they do - with or without prior knowledge. see more
2) Revenue Management Assistants that focus on optimizing the user in the optimization cycle by understanding where the user is and how to get them better.