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?
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.
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