The hotel industry has bagged over $570 billion across the globe in the financial year 2020-2021. Hence, it proves that the diverse companies of this industry are generating ample supply for dealing with the heavy demands. And the revenue management tools in hotels act as a support system for them! Do you want to know how?
The revenue management tools work upon deriving the performance and analytics data for taking some predictable decisions. All of the acquired data works upon determining customers’ behaviour towards the respective hotels or collective industry.
The data obtained and fed to the revenue management platform will then be used for deciding the pricing and distribution strategies. You just need to understand the general usability rules of such revenue management tools in hotels. And the rest is all specified within the dashboard or platform for you to simplify.
If you own a hotel or are planning to step into this industry, this discussion is quite an important concern for you. Let’s get deeper into what the hotel revenue management system offers! Following that, you will also get insight into the best management tools.
The Use of Revenue Management Tools
By now, you do have a brief knowledge of what revenue management tools are! But before heading out to your available options that you can prefer, it is better if you gain knowledge on the working functionality of these tools.
Revenue Management Software or tools are driving revenue optimization. To break it down for you, it optimises your collective revenue by letting you break down the valuable data and decide upon pricing factors.
The hotel revenue management solutions will help you specify the thought process of your respective customers. When you can determine what adds value to your services from your customer’s perspective, you will eventually be able to amend your supply scale to meet the demand scale.
Not just that, these tools will raise alerts on low supply on service-related offerings around the business. It will signal you to put up some offer prices or discounts to lure customers into your hotels. Hence, this is how the revenue management tools in hotels help you build your business strategies.
Revenue management was not initially adapted by the hotel industry. It was first originated and implemented by the airline industry. They used it to anticipate all of the customer demands and value needs. The airline companies tailored their services to meet them all.
Today hotel revenue management software, tools, or solutions are meant for almost all industries that deal with customers. Every sector that has customers who are ready to pay different prices for the same service can be managed with revenue management solutions. A hotel room is a prime example of this scenario!
The Trending and Necessary Types of Tools for Revenue Management
Your revenue manager needs to be very precise in picking the platforms. They might suggest some vital options, but you have to take the final call! So here are the four major revenue management components or tools that are accountable for seamlessly utilizing data and offering other such impactful services to help thrive your hotel business:
1. Channel Manager
A channel manager is the most crucial revenue management tool or system which adds up the feasibility of connecting and managing all of the distribution channels, preferably online. Hence, this will help you sell out the stocked inventory on a global scale.
It is considered one of the most powerful revenue management tools in hotels because it automates the rates and availability in all of your marketing or sales channels. It ensures that the customers or the users of your hotel platform should get the exact information in real-time.
2. Revenue Management Software or RMS
RMS is the primary tool of revenue managers, which helps them execute their jobs. The support of this software or tool has helped the hoteliers automate most of their business tactics. Moreover, it assists you with hotel revenue strategy for successful business growth.
Most hotel owners use this software to derive the major purpose of revenue management. It extracts all internal and customer data and tallies them with market supply. These three factors are collectively assessed to determine the pricing of hotel rooms.
You get to see every insight over your main dashboard, including the pricing recommendations. The historical, current, and real-time data need to be accurate for price recommendations. The tool compares its pricing base with competitor rates to keep you ahead in the game.
3. Property Management System or PMS
No revenue management can ever be started for a hotel, without the property management system. By skipping the utilization of these tools, you will face extreme hotel revenue management challenges, which will degrade your business operations.
The purpose of PMS is to manage all of the crucial hotel operations. It is a front-office execution software that manages room allotment, check-in, and check-out data.
Not just that, it also manages the revenue management and financial aspects, such as monitoring and changing the room rates and carrying out the billing needs, respectively. PMS works to enhance the productivity rate of your staff. It is also a cloud solution, which supports in adding up more flexibility, accessibility, and efficiency.
4. Booking Engine
A booking engine tool has a direct connection with hospitality revenue management. It takes care of the direct point of sales for your hotel business. Booking engines have the feasibility of processing the payments for international reservations at ease. It is because they are responsible for handling the conversion of currencies.
You need to pick the right booking engine, which can work in collaboration and integration with the channel manager or PMS. Hence, the availability will update in real-time over the portals. Hence, the unavailable rooms will not be visible to the customers for sale.
Moreover, the booking engine can also work alongside the pricing or revenue management tool. With this prominent integration, you will be able to monitor the room pricing in OTAs (online travel agency) and the official website to make strategic decisions on any price fluctuations.
5. Rate Shopper
A rate shopper is a tool that allows you to track the room rates, set by the competitors. So, this tool works on comparing the prices of competitors in real-time! The algorithms of these tools work out to search/compare through various reservation channels. They compare the rates for similar room types to give out fair verdicts.
When you have these tools within your collective revenue management system, you will better understand what your competitors are offering. Based on that, you can tweak your room prices to go one step ahead of your competition!
The utilization of revenue management tools came into the practice for the hotel industry. And soon they proved themselves to be efficient in boosting the success rate of your hotel business.
If you are looking for such efficient revenue management tools, then AxisRooms can be your way out. It is your one-stop hub for all of the tools that you would need for your seamless hotel operations.