Revenue management has always been the least understood part of an independent hotel’s operations. Though many hoteliers accept its importance and acknowledge the fact that it can boost occupancy, but they don’t consider it crucial for the hotel’s success. However, today with the rapid change of guest trends and booking patterns, revenue management strategy is totally imperative.
Helps Lower Hotel Costs
Booking patterns today are dependent on a number of factors such as the economy, season, average age of travelers etc. Thus, the best rate to sell your room today might be different from the optimal rate tomorrow. Having a revenue management strategy set up in your hotel not just helps determine the best rate to sell the room at, but also enables the hotel to plan ahead by optimizing manpower for times of higher demand and avoiding overstaffing during periods of lower demand.
Eliminates Human Errors
Another great advantage of Revenue Management System is that once the tool pulls out the right hotel prices, the hoteliers can update the prices across all the channels in real-time hence decreasing the chances of any manual errors. Any kind of error in terms of pricing can affect the hotel’s credibility. But with revenue management suite, there will be a drastic reduction in errors and higher efficiency.
Attract Potential Guests
Not every business hotel gets cannot be termed ‘good business’. While ensuring the importance of maximal occupancy, repeat customers are significantly more profitable than new ones – it costs more to reach out to new guests every time. A fully occupied hotel may not always be profitable. Bad revenue management like selling rooms at low rate or paying out heavy commissions can leave hotels losing money even during maximum occupancy.
Automated revenue managers help hotels better in identifying the right customers who can provide the best long-term value for the hotel’s future.
Revenue Management Improves Branding
Proper usage of revenue management strategies can play a huge role in increasing a hotel’s bottom line. Not just better pricing improves the hotel’s occupancy but also ensure that the hotel is selling all its rooms at its best price possible and generating maximum RevPAR at all times regardless of the size of the hotel.
Delivering powerful insight on pricing and demand through Hybrid Cloud-based software, QiK Circle’s Hotel Management Software generates maximum overall revenue. Take a free demo and see how it benefits your hotel.