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Hotels rely on OTAs like Booking.com, Agoda, and Expedia to stay visible and fill rooms. But while these platforms drive bookings, they can also cause unintended revenue loss — not because the platforms are flawed, but because of avoidable mistakes in how hotels manage them. The OTA adds a member discount on top.
This scalability is especially valuable for hotels – as more information is collected about guest behavior, booking trends , and occupancy patterns the more precise rate adjustments, inventory management, and marketing strategies will be in the future. Why it’s important for hotels? Why it’s important for hotels?
So, Im calling the mistakes out Here are 5 brutal revenuemanagement mistakes I see hotels make all the time as a CEO of a revenuemanagement consulting firm. Article Summary Dont Ignore Time Focusing on the Wrong Metrics Being Afraid of Change Not Utilizing Technology Fearing the OTAs 1. Time is of the essence.
But a lot of hoteliers have gotten stuck in a loop of constantly slashing prices, offering direct channel discounts, OTA promotions, and special rate packages to drive occupancy. can result in a stable revenue stream. And hotels and resorts have definitely caught on to this, offering tons of discounts to get people to book.
Solid occupancy isnt enough anymore. While occupancy is still a core metric, relying on it too heavily can leave your property management business vulnerable to seasonal swings, economic uncertainty, and a volatile demand environment. This post will show you how to convert those opportunities into revenue. The good news?
The right sales tactics can help increase revenue, boost occupancy rates , and ensure guests have a positive experience. Maximize Direct Bookings to Reduce Dependence on OTAs When guests book through Online Travel Agents (OTAs) like Booking.com or Expedia, hotels often have to pay hefty commission fees, sometimes up to 20%.
It can directly impact revenue, guest satisfaction, and your ability to scale. What Is a Channel Manager and Why Does It Matter? A channel manager connects your property management system to booking platforms such as OTAs, GDS (Global Distribution Systems), and direct booking engines.
This new integration allows hotels to leverage real-time occupancy data to automate and personalize direct booking campaigns. The partnership will offer several key benefits, including: Advertisements Increased Direct Booking Conversion: Personalized offers will be provided based on real-time occupancy data, driving higher conversion rates.
The second era of compsets started when the internet brought online travel agencies (OTAs) and online bookings, making competition more dynamic. Competition for hotels grew, and prices started to fluctuate more as revenuemanagement systems made pricing strategies more sophisticated.
From making sure staff, guests, and smooth operations are all attended to, we can understand why revenuemanagement so frequently gets put on the back burners. So, let’s provide you with a list of revenuemanagement tools to simplify managing your hotel so much easier: What are RevenueManagement Tools?
With a data-driven approach and AI-powered tools like eZee Mint AI , you can still maximize occupancy, increase revenue per room , and turn last-minute demand into profits. If youre still relying heavily on OTAs, now is the time to push direct bookings with exclusive deals. For hoteliers, events like this dont come often.
By analyzing booking patterns, guest behavior, and local events, hotels can anticipate occupancy rates and adjust strategies accordingly. Inventory Management: Adjust inventory levels and maintenance cycles to meet expected occupancy, reducing wear and reactive fixes. The richer the data, the more accurate the future planning.
Established in 2016, RevenYou is a specialist consultancy firm supporting accommodation businesses across Australia, New Zealand, and the Pacific with revenuemanagement, sales, marketing, and systems integration. Unlocking profit for its clients has become synonymous with the brand over the years. Let’s look at five examples.
They simplify the often complex world of revenuemanagement , giving you a reliable foundation to build upon as you grow your confidence in managing rates. Bar rate : Best available rate (BAR) is often lower than the rack rate and fluctuates based on demand, season, and occupancy.
Financial analysis When EBITDAR is combined with other metrics, such as ADR (average daily rate), occupancy rate, or RevPAR (revenue per available room) , it can help dig deeper into financial metrics. 7 tips to improve EBITDAR As a profit metric, EBITDAR can be improved in two ways: increasing revenue and reducing costs.
Be strategic with your pricing Extended-stay guests expect lower nightly rates but deliver higher total revenue. Use revenuemanagement tools to develop competitive pricing that attracts 30+ day bookings. Strategic use of dynamic pricing for extended stays can maintain occupancy when short-term demand drops.
The Hotel Marketing Podcast is for hotel marketers, revenuemanagers, and hospitality professionals looking to enhance their marketing efforts. The Boostly Podcast is for hospitality business owners, managers, and marketers looking to enhance their direct booking strategies and gain independence from OTAs. Who’s it for?
Hotel management can often feel like youre spinning plates – online travel agents (OTAs) sending bookings, guests booking directly on your site, and your front desk needing real-time updates to avoid the dreaded overbooking. Enter the channel manager. You can maximise occupancy and revenue without manual rate updates.
Every hotelier dreams of high occupancy, steady revenue, and a thriving business year-round. Theres a tendency to rely on one-off discounts, flash sales, or online travel agencies (OTAs) to fill rooms quickly without building a sustainable demand pipeline. And if you ask, theyll all agree demand generation is the key to success.
In total, ChoiceROCS drove $81 million in incremental revenue to participating properties. From negotiating reduced OTA fees and leveraging Choice’s scale with suppliers, the company delivers tangible results for its franchise owners.
How many direct bookings are you losing to OTAs due to poor integration? With a centralized HMS, revenuemanagement tools can optimize pricing strategies, direct booking systems can reduce OTA dependency, and automated staffing solutions can ensure that operational costs remain under control.
Failing to stay top-of-mind means you risk losing them to online travel agencies (OTAs) or competitors. This enables marketing teams to recoup revenue lost from cart abandonment and increase direct bookings. Instead of paying commissions to OTAs, hotels can redirect this budget into their own digital marketing strategies.
Available in 50+ languages, it delivers fast, personalized responses that drive higher conversions , reduce booking abandon rates, and capture direct bookings that may otherwise go to OTAs. Anacoveâs integrations include: Smart Thermostats that go far beyond basic climate control.
Omnichannel Communication Platforms These tools unified communications across multiple platforms such as WhatsApp, OTAs, Facebook Messenger, Instagram, and live chat in one interface. Are you in the know? This not only wastes time but increases the risk of human error as well. With integration, data flows automatically between systems.
Keep them coming back for easier and cheaper occupancy boosts. Data-Driven Hospitality Big data and AI are our new revenuemanagers, optimizing operations better than a seasoned GM. Their perception becomes the story they tell about your hotel. Online reviews spread faster than room service One bad review can go viral instantly.
For example, during peak travel periods, an efficient reservations manager using a modern property management system (PMS) can swiftly allocate room blocks for group bookings or special events, maximising occupancy without overbooking. The reservation department is responsible for managing all incoming bookings.
Whether it’s a well-crafted website, partnerships with OTAs, or engaging social media, creating a strong online footprint is how you turn searches into bookings. Online Travel Agencies: Expanding Your Reach When travelers search for a place to stay, they usually turn to Online Travel Agencies (OTAs) like Booking.com, Expedia, or Agoda.
With these enhancements, we aim to tap into newer market segments where hospitality properties are increasingly looking at boosting occupancy and revenue, positioning them at the forefront of a rapidly evolving industry where guest choice is paramount. Hotelogix is now compliant with Shomoos.
Meanwhile, nationwide hotel occupancy reached 67.5% A cloud-based PMS not only streamlines front desk operations but also integrates seamlessly with tools like a channel manager to ensure real-time room availability across OTAs, reducing overbookings and manual errors. What does this mean for you as a new hotelier ?
Sustainability Tech: Eco-Friendly Hospitality Reimagined Green initiatives are at the forefront of hotel innovation: Smart Energy Management: AI-driven systems optimize energy use based on occupancy and environmental factors. Enter Hotelogix, the cloud-based PMS that’s turning hotel management from a headache into a breeze. -
As technology continues to evolve, so do the strategies and innovations within revenuemanagement. Let’s delve into some of the key trends shaping the future of revenuemanagement in the hotel industry: 1.
What is hotel revenuemanagement? Hotel revenuemanagement is the strategic distribution and pricing tactics used to sell perishable room inventory to the right guests at the right time in order to boost revenue growth. What is the primary purpose of revenuemanagement?
A quick search on the internet yields a wide range of definitions for ‘revenuemanagement’. Some of these take a theoretical, almost academic approach and, in several instances, there are iterations of revenuemanagement’s classic definition: ‘selling the right room, to the right guest, at the right time, for the right price’.
Since the early days revenuemanagement has been applied in hotels, there has been an intriguing ongoing discussion. What drives more value to the business, ADR, average daily rate, or occupancy? I have been in hotel revenuemanagement consulting since 2006, and it is a question that keeps coming back. Which is it?
Like many other areas in travel and hospitality, revenuemanagement has dramatically changed in the last two years. We spoke to leading revenuemanagers on what they think lies ahead. Don’t rule out presence on OTAs,” suggests Jaydeep, “but make sure you keep up your profiles on other online media.”.
We have written extensively about hotel revenuemanagement strategies and tactics here throughout the years. As strategy is one of the most essential parts of revenuemanagement, we have made a summary of all the top advice from our perspective as a hotel revenuemanagement consulting company.
It’s hard to imagine revenuemanagement before the advent of hotel software and systems. Thanks to these solutions, today’s revenuemanager can produce forecasts, distribute inventory and adjust rates with speed – a stark contrast to the manual and long drawn-out processes that defined the practice in the past.
Managing fees on online travel agencies (OTAs) can be a real headache for property managers. According to a new Forbes report, Airbnb customers in summer 2023 face a whopping average of 36% in added charges above the nightly rate, and the same is probably true for other OTAs. This increases your ranking on OTAs.
Hoteliers need to employ smart strategies to optimize revenue and profitability. One of the most powerful tools in their arsenal is a robust RevenueManagement Solution (RMS). This enables hoteliers to adjust room rates dynamically to maximize revenue based on current market conditions.
In hospitality, every dollar earned reflects smart planning, sharp forecasting, and responsive pricing, all driven by the Hotel RevenueManager. The modern RevenueManager blends analytical skills, commercial instinct, and technology to answer a simple question daily: How do we maximise revenue without compromising guest experience ?
Since the early days revenuemanagement has been applied in hotels, there has been an intriguing ongoing discussion. What drives more value to the business, ADR, average daily rate, or occupancy? I have been in hotel revenuemanagement consulting since 2006, and it is a question that keeps coming back.
Channel Manager Update Generate Group Revenue Report Channels Update New & Old OTA Integrations Channel Manager Update Group Revenue Report What’s new? The new ‘Group Revenue Report’ displays revenue, bookings, and room nights for selected properties. How to generate this report?
What is revenuemanagement software? Revenuemanagement software is a digital tool designed for the hospitality industry to optimise room rates based on predicted demand. It uses data analytics to forecast hotel room demand, allowing hoteliers to adjust prices accordingly to maximise revenue.
What is a hotel revenuemanagement system? A hotel revenuemanagement system (RMS) is a technology platform that helps hotels make smarter pricing and inventory decisions. Table of contents Why is a revenuemanagement system for hotels important? A revenuemanagement system removes the guesswork.
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