Imagine having a tool that helps you set the right tariff for each of your hotel room categories based on the market analysis and other factors that go into deciding the best price for each room type. Appealing right? Read on for more details.
The crucial aspect of any business is to rake in the revenues. A hotel should offer interesting tariff plans and novel campaigns to attract potential guests and visitors. Smart pricing options play a good role in enticing visitors to hotels.
How do hotels decide the right price for each room?
It is not feasible for a hotel to assign a staff member to check their competitor rates in real-time and update their hotel rates accordingly. It involves manual efforts, complex calculations, and may result in high chances of error. It may not be a highly analyzed decision as well.
Revenue Management System for hotels helps in setting the right prices for hotel rooms at the right time. It pulls together data from the hotel, the market and does a general analysis in an efficient and convenient tool. For hoteliers, a single dashboard access to manage their operations, distribution and revenue management will be a great advantage.
There are times when a hotel offers discounts during a certain period and at other times; the hotel increases the price of the rooms. To maintain a balance between these periods, a revenue management system is essential to decide the right price after doing a thorough analysis of the market, competitors and other factors that go into deciding the price of the room types.
This is why a hotel needs a revenue management system to manage pricing and creating inventories. A revenue management system does that and more – it also churns out campaigns and smart ideas.
Eliminate Errors with the Revenue Management System
Another great advantage of a Revenue Management System is that once the tool pulls out the right prices, the hoteliers can update the prices across all channels in real-time hence decreasing the chance of manual errors.
If a hotel is not using a revenue management system, the cost of human errors needs to be factored. The hospitality industry is sensitive and is run by repute. Any kind of error in terms of pricing can dent the creditability in a big way. But with a revenue management tool, there will be a drastic reduction in errors and efficiency will be higher.
Revenue Management System is Scientific
Besides human errors, systematic revenue management software will collect accurate data, build a historic data inventory that will clearly segregate the prices and demands for lodging. So, you can create your pricing strategies with a competitive edge.
A revenue management system is a user-friendly, easy to set up tool that allows hotels to increase their ReVPAR, regardless of the size of the hotel.
Benefits of Revenue Management System
- Follow the price recommendations and maximize your hotel’s RevPAR
- Save time by implementing an optimal price strategy
- Powerful yet simple to use platform saves on adapting time
- The algorithms deliver the highest quality price recommendations
Hotelogix has partnered with PriceMatch Revenue Management System and the integrated dashboard will allow the room rates to be dispersed in real time across all distribution channels. (Read: Hotelogix Partners With PriceMatch in HITEC 2014)
Key Features of the Revenue Management System
- Rate recommendations up to 90 nights, per room type
- Actual reservations and pick-up
- Accurate monitoring of your competitors’ rates and the events
- Estimates of profit generated by following the recommendations
- Pick-up per segment and per day (realized and forecasted with unconstrained demand)
- Follow the performance of each of the forecasts and recommendations
- Set your budgets and targets (Occupancy, ADR, Customer Segmentation)
- Follows the impact of e-reputation and sets it on your pricing and bottom line
Hotelogix is glued into integrating this new system for its customers and until it’s launched, you can take a free trial of Hotelogix’s property management system and see how it benefits your hotel."Why is a Revenue Management System Important for Hotels?",