How Should The UK Hotel Market Adapt in a Strengthening Economy?

How Should the UK Hotel Market Adapt in a Strengthening Economy2014 has been the much needed golden year for the UK hospitality industry. After several volatile years where the average price per room dipped significantly, this year has proved to be just what the doctor ordered, and according to PWC’s 2014 UK hotels forecast, it’s going to get even better.

This year, throughout U.K., there has seen a significant rise in occupancy, ADR, and revenue per room. But with booming business, the competition also raises so over the last 1 year U.K. has seen an increase of more than 13,000 rooms. Hotels, especially the small and mid-sized industries, need to step up their A Game and ensure they take the right measures to maximize their property’s potential.

To manage the competition in the market, hotels should find sustainable and cost-effective solutions that can enhance their profit margins.

One of the most cost-effective and productive tool that a small or mid-sized hotel can take, is to change over to a cloud based PMS and distribution system. A cloud based system can ensure that the hotel’s management and distribution is taken care of seamlessly and productively.

An efficient and cost-effective cloud based PMS and distribution system like Hotelogix can enable the hotels in UK to adapt effortlessly with the strengthening economy, as well as enhance their bottom line in the following ways:

Improve the Hotel’s RevPar        

The revenue management system of an effective PMS and distribution system, helps a hotel set the right tariff for the hotel’s room categories based on market analysis and other factors. It enables hotels to set tariffs which are attractive for potential guests and competitive to what is available in the market.

Small and independent hotels can’t afford to have one individual assigned to analyze the tariffs of their competitors in real time and thus update their rates accordingly. A revenue management system decides 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 enables hotels to increase their RevPar effortlessly. (Read: Why is a Revenue Management System Important for Hotels?)

 Generate Incremental Bookings through Tools like TripConnect

TripConnect is a powerful new way for hotels and B&B’s to generate incremental bookings by participating in Hotel Price Comparison and self-managing their online advertising campaigns using TripConnect’s unique bid management platform. Certified booking engines will provide the accommodation’s real time availability and online booking capability to make this possible.

Several PMS’s like Hotelogix, have recently partnered with TripConnect as their Premium Launch Partner. Through TripConnect, hotels can boost their businesses and RevPar numbers by linking hotels to more than 260 million unique monthly visitors on the TripAdvisor website.  This partnership helps give that extra edge to independent hotels across the globe and enable them to be strong contenders in the global marketplace. (Read: 5 Reasons Why Your Hotel Needs TripConnect)

 Sell more on online channels without any commissions

Many small and mid-sized hotels end up having to pay a high commission to their OTA’s thereby resulting in low profit for the owners.  An efficient distribution system would allow the UK hotels to sell across numerous booking channels through a single dashboard that has been integrated with their hotel’s website.  Everything gets managed through the distribution system that has been integrated with a channel manager thereby eliminating the middle man and better profitability for the hotel. (Read: TripConnect: A Hotelier’s Tool to Outsmart OTAs)

 Independent and small and mid-sized hotels across the UK can take full advantage of the strengthening economy by ensuring that they are equipped with the right tools and also know how to use these tools to their full potential.

The above mentioned points are only some of the ways in which a hotel can warrant that they have the higher hand. To know more, register for the webinar on 3rd of September on “The New Rules for UK Hotels”.