This week, Ed Sheeran is set to perform in India, bringing another wave of music-loving fans who need a place to stay. Some of your competitors made five times their usual revenue during the Coldplay concert simply by optimizing their pricing and room availability, while others failed to act and barely made a dent in their earnings. The question is, will you seize this opportunity, or will you watch another revenue surge pass you by?

For hoteliers, events like this don’t come often. The time to adjust your strategy is now. 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.

But you have to act fast.

Don’t Let Last-Minute Pricing Cost You Profits

Ed Sheeran’s fanbase is diverse, from students and backpackers to luxury travelers. That means the demand is spread across different hotel categories. If you haven’t adjusted your pricing to reflect this surge, you’re already missing out on premium bookings.

Dynamic pricing isn’t just about increasing rates—it’s about pricing smartly based on real-time demand, market trends, and competitor rates. Hotels that used eZee Mint AI during Coldplay’s concert optimized their pricing in real-time, ensuring they weren’t undercharging but also weren’t scaring away potential bookings. Some hotels that failed to adjust their rates early ended up selling their rooms too cheaply, while others waited too long and missed the peak booking window. The key is to balance affordability with profit margins, and AI does that seamlessly.

Late Bookers Are Desperate— Make It Work in Your Favor

A week before the concert, most budget-friendly accommodations are already sold out. But there’s always a significant number of last-minute bookers—fans who decided on a whim to attend, travelers who had their plans finalized late, or those who initially planned a day trip but now want to extend their stay. These guests are willing to pay more for convenience, so this is where last-minute surge pricing comes in.

The mistake some hotels made during Coldplay’s concert was failing to recognize that scarcity drives urgency. Instead of selling their last few rooms at premium rates, they either kept their standard prices or didn’t advertise their availability well enough. This is why real-time rate adjustments matter. 

AI-powered revenue management doesn’t just suggest price hikes; it ensures that your pricing aligns with demand fluctuations, maximizing revenue without turning potential guests away.

Sell More Than Just a Room—Sell an Experience

Concert-goers aren’t just looking for a bed to crash on— they’re looking for a seamless, enjoyable experience. Hotels that created Coldplay-themed packages with perks like late check-outs, free breakfast, or shuttle services to the venue saw a surge in direct bookings. The same strategy can be applied to Ed Sheeran’s tour. Fans want convenience, comfort, and exclusivity, and if you can package that, they’ll pick your hotel over competitors—even if your price is slightly higher.

If you’re still relying heavily on OTAs, now is the time to push direct bookings with exclusive deals. Offering a slight discount for direct bookings, bundling services, or even running targeted ads can divert some of the OTA traffic straight to your hotel website, helping you save on hefty commission fees.

Don’t Let Overbooking or Cancellations Kill Your Revenue

With a major event like this, cancellations and no-shows are inevitable. Some guests overbook, others change their plans last minute, and some simply forget to cancel. Hotels that failed to account for this during Coldplay’s concert lost significant revenue by leaving rooms unsold at the last minute. The best way to handle this is by overbooking strategically based on past data and real-time demand trends.

AI-driven revenue management helps predict potential cancellations and optimally allocate inventory so you’re not left with empty rooms on the concert night. Implementing strict cancellation policies while offering flexible rebooking options ensures you’re minimizing losses and maximizing occupancy.

The Clock Is Ticking—Make Your Move Now

Ed Sheeran’s India tour is happening this week, and if you haven’t adjusted your pricing, optimized your inventory, or strategized for last-minute bookings, you’re already behind. But it’s not too late!

With smart revenue strategies and AI-driven insights from eZee Mint AI, you can still turn this into one of your highest-grossing weekends of the year.

Try eZee Mint AI today and see the difference

Coldplay’s concert was a lesson for many hoteliers—some learned how to maximize earnings, while others realized what they missed out on. Don’t make the same mistake twice.

The music industry’s biggest names are bringing travelers to your city—make sure your hotel is ready to cash in.

The post Encore Profits: How Hoteliers Can Cash In on Ed Sheeran’s India Tour with Smart Revenue Strategies appeared first on eZee Absolute.

Burdened by outdated management systems and the ever-evolving demands of the industry, they found themselves struggling to keep pace. However, their story took a remarkable turn when they decided to switch their hotel software. 

So let’s dive into their journey and explore how modern innovative solutions transformed their business operations, bringing newfound efficiency and simplicity. 

Challenges

For Hotel Lucky, standing out amidst Agra’s plethora of hospitality options was no easy feat. The competitive environment, coupled with outdated hotel management systems, was a big challenge to their operational efficiency and growth prospects. 

Manual processes and slow-processing software consumed a lot of their valuable time and resources, leaving little room for innovation and guest satisfaction. They needed a solution that could streamline operations and propel them towards success. 

Solution

Recognizing the urgent need for change, Hotel Lucky switched to Yanolja Cloud Solution (YCS’s) comprehensive hospitality solutions. They implemented the eZee Absolute– Hotel Property Management System. 

The seamless integration of eZee Absolute simplified their daily tasks, saving hours of manual work. It provided a much-needed boost during their growth phase. This newfound efficiency provided Hotel Lucky with a competitive edge in the bustling hospitality market of Agra. 

With that, the user-friendly interface of eZee Absolute ensured smooth navigation for staff members, eliminating unnecessary complexities. With the reliable solutions provided by YCS, Hotel Lucky witnessed a transformation in the way they managed their hotel, fostering efficiency and enhancing guest experiences. 

Other Benefits

YCS Hotel PMS proved to be a game-changer for Hotel Lucky, offering a myriad of benefits beyond simplifying operations. Its feature-rich interface and user-friendly design made navigation effortless for staff members. Here’s how eZee Absolute transformed their hotel management experience:

• User-Friendly Interface: The PMS system offered an easy-to-navigate interface, making it simple for Hotel Lucky’s staff to adapt and utilize effectively. 

• Efficient Financial Tracking: With YCS, Hotel Lucky could track finances seamlessly, ensuring accuracy and enabling better financial management decisions. 

• Report Analytics: Our PMS helped Hotel Lucky with comprehensive report analytics, empowering them to make informed decisions and optimize their strategies for enhanced performance. 

• Extensive Integrations: YCS offered a range of integrations including IVR systems, tally, payment gateways, and passport scanners, expanding Hotel Lucky’s operational capabilities. 

Switching to a cloud-based PMS transformed the way they were operating their hotel business before. making things simpler, faster, and more efficient. 

READ MORE: Why Hoteliers are Switching to Cloud-based PMS?

YCS vs. Others

“During our search for a new Hotel Management System, we explored demos from several well-known PMS providers. But most were too expensive and overly complex” remarked Ankit Saraswat, manager of Hotel Lucky, Agra. 

This struggle isn’t unique; many small and mid-size hotels face the same problem as high-priced software that doesn’t fit their budgets and seems complicated to use. 

However, YCS’s solutions offers a compelling solution by providing affordability without compromising on quality. Combining this with comprehensive features and seamless integration, made it a clear choice for Hotel Lucky. 

What truly distinguished YCS was its reliability and user-friendly interface. While other solutions provided similar features, none matched the seamless integration, robust performance, and exceptional value offered by YCS. 

By choosing YCS, Hotel Lucky not only accessed advanced technology for their operations but also ensured that their investment would yield substantial returns, promising a prosperous future for their hotel business 

Customer Support Team

“One thing I would like to highlight about YCS is their 24*7 customer support ” says Ankit Saraswat, Hotel Manager of Hotel Lucky, attesting to the exceptional customer support offered by YCS. The prompt assistance and expertise provided by the support team proved invaluable in overcoming challenges seamlessly. 

Whether troubleshooting technical issues or conducting training sessions for staff members. YCS’s support team stood by Hotel Lucky every step of the way. As a trusted partner in their journey, YCS continues to play a vital role in Hotel Lucky’s success and growth. 

A Modern Hotel PMS for Every Hotel Type 

As managing a hotel becomes increasingly complex, finding the right technology partner is crucial for sustained success. If you find yourself spending hours on manual tasks or feeling apprehensive about the risks and costs associated with cloud-based PMS solutions, why not give YCS a try? 

Experience seamless operations, and unparalleled support, and embark on a journey towards transformative growth and success.

The post Boosting Efficiency and Booking Surge: How YCS’s Hospitality Solutions Led to Seamless Operations at Hotel Lucky, Agra  appeared first on eZee Absolute.

But here’s the good news: there are things you can do to fight back!

This blog is your one-stop shop for learning how to proactively combat credit card fraud at your hotel. We’ll explore 6 simple but effective ways to keep your business safe and your guests stress-free. 

So, grab a cup of coffee (or your beverage of choice), and let’s arm ourselves with knowledge to protect your hotels and guests.

What is A Hotel Credit Card Fraud?

Before we delve into credit card fraud, let’s understand what we’re facing. 

Credit card fraud happens when someone uses another person’s credit card information without their permission to make purchases or reservations. This can occur in a few ways:

• Card Not Present (CNP) Fraud: This is becoming increasingly common. Fraudsters steal credit card details (card number, expiration date, CVV code) and use them online to book rooms or pay for services without even needing a physical card.
• Physical Card Theft: The classic case – a thief steals a guest’s wallet or credit card and uses it to pay for their stay or rack up charges.
• Account Takeover: Fraudsters use stolen personal information (including credit card details) to gain access to a guest’s existing account and make unauthorized charges.

By understanding the different types of fraud, you can be more alert to potential red flags and take steps to protect your hotel and your guests. 

Now, let’s get insights into some proactive ways to keep those credit card bandits at bay!

6 Proactive Ways to Combat Hotel Credit Card Fraud

Payment fraud poses significant risks, especially for independent properties like yours. So, how can you minimize this risk? Here are some practical tips and best practices to help safeguard your business.

1. Verification at Check-In

Verification at check-in is a critical step in preventing credit card fraud at hotels. It is the first line of defence against a hotel credit card fraud. Here’s how you can do it–

• Confirm Identity: This might seem obvious, but always ask for a valid government-issued photo ID (driver’s license, passport) that matches the name on the credit card used for booking. Double-check the expiration date and photo to make sure it’s the real deal.
• Don’t Be Shy, Ask Why: If something seems off – a blurry photo ID, a name that doesn’t quite match, a guest acting nervous – don’t be afraid to ask questions politely. You can explain it’s just for security purposes.
• Pre-Authorization Power: For high-risk reservations (expensive rooms, last-minute bookings), consider pre-authorizing the credit card. This puts a temporary hold on a small amount to confirm the card’s validity. Once confirmed, the hold gets released.
• Digital Check-In Done Right: Digital check-in is convenient, but security shouldn’t take a vacation! Make sure your system requires guests to upload clear photos of their ID and credit card during the online check-in process.

By implementing these verification practices at check-in, hotels can significantly reduce the risk of credit card fraud while providing a secure and seamless experience for guests.

2. Maintain Accurate Records

Accurate record-keeping serves as a crucial tool in identifying and preventing credit card fraud instances. By meticulously documenting all guest transactions, including payments, check-ins, and check-outs, hotels can effectively track and monitor any suspicious activities. Here’s how—

• Accuracy is Key: Make sure all guest information (name, address, phone number) is entered accurately during check-in and matches the details on the credit card. Typos and mismatched info can create openings for fraudsters.
• Digital Detox (Sometimes): While digital records are convenient, consider keeping paper copies of IDs and bills of high-risk credit card transactions. At times a physical record can be a lifesaver.
• Save Data: Store all guest information securely, following industry best practices. This might involve using encrypted databases and access controls to keep prying eyes away. Investing in a cloud-based hotel PMS can also help centralize and encrypt data, ensuring its integrity and protection against unauthorized access.
• Clean Up Crew: Don’t let old data linger! Regularly purge outdated guest information according to your local data privacy regulations. This reduces the risk of a data breach and keeps your system squeaky clean.
• Utilize Technology: Utilizing technology can streamline record-keeping processes and enhance accuracy. Implementing an integrated hotel management system or booking software can automate many record-keeping tasks, reducing the risk of manual errors.

By implementing such practices to maintain accurate records, hoteliers can strengthen their defenses against credit card fraud and ensure the integrity and reliability of transaction records.

3. Make Clear Anti-Fraud Policies and Procedures

Imagine a suspicious reservation comes in, but your staff isn’t sure how to handle it. That’s when clear anti-fraud policies come in. Here’s how to create a winning strategy:

• Create Clear Policies: Write down clear and concise procedures for handling suspicious transactions. This might include guidelines for verifying high-risk bookings, handling requests for address changes, and reporting potential fraud. Make sure your team is trained to follow your policies and escalate concerns if they find anything suspicious.
• Make it Accessible: Keep your anti-fraud policies readily available for staff as a reference during busy check-in times. A quick digital document or a printed poster by the front desk can be a lifesaver.

By establishing clear policies and procedures, you equip your staff with the tools they need to fight fraud and protect your hotel. Remember, a well-trained team is a powerful weapon against sneaky credit card thieves!

4. Staff Training on Fraud Awareness

Training staff on fraud awareness is vital for preventing credit card fraud in hotels. By educating employees on common fraud schemes, red flags to watch out for, and best practices for handling suspicious situations, hotels empower their frontline defenders.

Staff training covers various fraud types, including card-present and card-not-present fraud, and teaches employees to recognize indicators like unusual booking patterns or behavioral discrepancies. Practical exercises and regular refresher sessions reinforce learning and maintain staff vigilance.

Creating a culture of openness encourages staff to report suspicious activity promptly, ensuring swift and effective responses to potential fraud incidents. With informed and vigilant employees, hotels can effectively combat credit card fraud and protect both their business and guests from financial harm.

5. Descriptive Credit Card Descriptors

Clear and descriptive descriptors for credit card transactions are essential for preventing fraud and improving guest satisfaction. By using concise language that accurately reflects the transaction, including relevant details like the hotel name and location, can help guests easily identify purchases and reduce confusion. 

Regularly updating descriptions to reflect changes in pricing or offerings ensures accuracy and relevance. Clear descriptors not only enhance guest experience but also play a crucial role in fraud prevention by enabling guests to quickly identify unauthorized transactions. 

Prioritizing clear descriptors benefits both guests and hotels by reducing disputes and chargebacks while improving overall fraud prevention efforts.

6. Regular Financial Review

Financial reviews are crucial for hotels to ensure health and identify areas of concern. By analyzing financial data, setting clear objectives, and monitoring performance against benchmarks, hotels can optimize their financial strategies. 

This includes reviewing financial statements, conducting audits of processes and controls, and collaborating with financial professionals for expertise. Documenting findings and action plans ensures accountability and tracks progress over time. 

Prioritizing regular financial reviews helps hotels enhance performance, identify growth opportunities, and mitigate risks effectively.

The post Credit Card Fraud at Hotels: How to Stay One Step Ahead? appeared first on eZee Absolute.

And you wonder what you must be doing wrong, right?

Well, the answer lies in how well you’re using your Hotel Revenue Management System (RMS) reports.

RMS reports are like secret weapons for hoteliers. They unlock valuable insights into guest behavior, pricing trends, and competitor data.

But with so many reports available, how do you find the ones essential for maximizing your hotel’s revenue?

Don’t worry, this blog post will be your guide to understanding the top RMS reports every revenue manager needs to know.

Role of Revenue Management System

Before diving into specific reports, it’s essential to understand the role of the revenue management system in your hotel operations. An RMS is a comprehensive software solution designed to analyze various data points, including historical booking patterns, market demand, competitor pricing, and other factors that influence revenue generation for your hotel. 

By processing these data, an RMS helps revenue managers set optimal pricing strategies, manage inventory effectively, and maximize revenue across all distribution channels. 

Additionally, it keeps track of what other hotels in your area are charging for similar rooms and gives various performance reports that show what’s working and what needs to change. 

Now, let’s dive more into those RMS reports and learn how to make the most out of them.

RMS Reports Every Hotel Revenue Manager Needs to Know 

RMS reports offer invaluable insights into your hotel’s revenue performance and each report uniquely shapes pricing strategies, optimizes inventory management, and maximizes revenue potential. 

By utilising these RMS reports, revenue managers can make informed decisions to adjust pricing strategies accordingly. Find out some essential reports you should leverage to drive more profitability: 

1. Pickup Report

The pickup report provides a real-time snapshot of reservations booked within a specific timeframe, typically for the last 24 or 48 hours. This report is vital for understanding last-minute booking trends and identifying unexpected surges or dips in demand. 

By analyzing the pickup report, revenue managers can easily identify peak and low booking periods to adjust pricing strategies accordingly. 

For instance, if the report shows a surge in last-minute bookings for a specific weekend, revenue managers can raise rates to earn more on the high demand and vice versa. 

2. Flash Report 

Flash Report presents the summary of hotel performance metrics. It provides a quick overview of key performance indicators (KPIs) such as occupancy rate, Average Daily Rate (ADR), and Revenue per Available Room (RevPAR) for the previous day, week, month, or year (depending on the configuration). 

With a quick glance at the flash report, revenue managers can check the hotel’s performance against the budget and identify any immediate areas of concern. 

With actionable insights at your fingertips, you can swiftly adapt pricing strategies to capitalize on emerging opportunities or mitigate revenue losses. 

3. Revenue Forecast Report 

Looking ahead is crucial for any successful revenue management strategy. Just as the name suggests, the revenue forecast report is all about projecting your hotel’s future revenue potential. 

No, it’s no magic crystal ball. The revenue forecast report provides a prediction of future occupancy and revenue based on factors like historical data, market trends and upcoming events. 

It helps to anticipate demand fluctuations and price rooms accordingly. This proactive approach ensures the hotel captures maximum revenue during peak periods without leaving money on the table. 

4. Competitor Analysis Report 

Running a hotel is no less than a chess game, but just with more players. That’s how competitive the industry is. Just like a skilled chess player needs to understand their opponent’s moves, you, as a hotelier, need to be informed about your competitors’ pricing strategies to remain competitive in the market. 

That’s where the competitor analysis report helps with insights into their pricing, occupancy rates, and promotional offers. 

Additionally, understanding competitor offerings will help you to identify areas where your hotel can differentiate itself and attract more guests.

5. Booking Pace Report 

Booking pace reports track reservations made for future dates, providing valuable insights into booking trends and helping identify potential gaps in bookings.

For example: A hotel’s booking pace report for the upcoming month falls short of the occupancy target. The revenue manager can launch targeted marketing campaigns or adjust pricing strategies for specific room types or dates to fill the gap.

By leveraging the insights gleaned from these reports, revenue managers can make data-driven decisions that optimize hotel revenue, improve occupancy rates, and maximize profitability.

6. Weekly Report 

Weekly reports provide an overview of key metrics for the past week, including reservations, cancellations, revenue generated, and channel performance. 

It evaluates the effectiveness of recent pricing and marketing strategies, allowing for adjustments and corrections.

For instance, the weekly report shows a significant increase in bookings through a new online travel agency partnership. In such a case, your revenue manager can increase the commission offered to this channel if it proves to be a highly profitable source of bookings or can allocate an additional marketing budget to promote the partnership and further leverage this channel. 

A Revenue Management System That Has It All 

Extracting valuable insights from these reports is key to optimizing hotel revenue. However, the success of any revenue management strategy depends on utilizing the right tools. But finding the right revenue management system with all these extensive reports can be exhausting. 

There are a handful of tools that come with a deeper understanding of the hospitality market and the ability to translate data into actionable insights. One such robust and intuitive hotel revenue management software is eZee Mint.

With powerful data analytics and dynamic pricing capabilities, eZee Mint is affordable and helps you unlock your hotel’s true revenue potential.  

The system uses real-time data and competitor analysis to automatically suggest optimal pricing strategies. ensuring you maximize revenue across all channels and guest segments. 

Additionally, with the intelligent pricing engine, eZee Mint helps predict future demand patterns. This allows you to plan your pricing and inventory management strategies more effectively, putting you ahead of the curve. 

And the best part? eZee Mint offers all the reports we’ve discussed above – from pickup reports to competitor analysis, you’ll have everything you need at your fingertips all in one system. 

The post Make Smart Hotel Decisions with These Essential Revenue Management Reports appeared first on eZee Absolute.

Well, that’s where “hotel rate types” come into play. They act as the secret ingredient that can help you achieve this fine balance of setting the right price at the right time.

Think of rate types as unique pricing strategies tailored to different scenarios and guest segments. They’re like your toolkit for welcoming all sorts of guests, whether it’s during the bustling peak season or the quieter off-season.

If you’re new to the hotel business or a seasoned pro, understanding these rate types can make a huge difference in your hotel’s financial performance.

In this blog, we’ll break down the various hotel rate types, and how they can benefit your business and provide actionable strategies for you to maximize your revenue and occupancy.

So, let’s dive in!

What are hotel rate types? 

rate types are designed to cater to different guest preferences, needs, and booking behaviours. Each rate type comes with its own set of rules, restrictions, and benefits.

Here are some common hotel rate types:

• Standard Rates: These are the regular rates offered by hotels. They usually come with flexible booking and cancellation policies, allowing guests to make changes or cancel reservations without incurring significant penalties. 

• Non-Refundable Rates: Non-refundable rates are typically lower than standard rates but come with stricter cancellation policies. Guests who choose these rates commit to their reservations and do not receive refunds if they cancel or modify their bookings.

• Advance Purchase Rates: Hotels offer discounts to guests who book their rooms well in advance. These rates encourage early booking and help hotels secure reservations ahead of time.

• Last-Minute Rates: Usually, last-minute rates are discounts offered to guests who book rooms on short notice. They are designed to fill vacant rooms that might otherwise go unsold.

• Package Rates: Package rates bundle room reservations with additional amenities or services, such as breakfast, spa treatments, or tickets to local attractions. These packages provide added value for guests.

• Corporate Rates: Hotels often negotiate special rates with businesses for their employees who travel for work. These rates are typically available to corporate clients and their employees.

• Group Rates: Group rates are tailored for parties booking multiple rooms, such as wedding groups, tour groups, or conference attendees. They often come with specific terms and conditions, including a minimum number of rooms to qualify for the discount.

• Member or Loyalty Program Rates: Many hotel chains have loyalty programs that offer exclusive rates and perks to their members. These rates can include discounts, room upgrades, and late check-out.

Each rate type serves a specific purpose, catering to different guest segments and booking behaviours. Hoteliers can strategically use these rate types to optimize their revenue and occupancy levels, while guests choose the rate type that best suits their travel plans and budget.

Benefits of Using Various Hotel Rate Types

First, let’s delve into the numerous advantages of using various hotel rate types, shedding light on how they not only maximize revenue but also enhance the overall guest experience:

• Catering to Varied Guest Preferences:

Different travellers have varying needs and budgets, and by offering a range of rate types, you can cater to these diverse preferences. Standard rates may appeal to cost-conscious guests, while package deals can entice those seeking value-added experiences. Corporate rates, in turn, cater to business travellers. This diversity ensures that your hotel remains an attractive option for various guest segments, ultimately leading to increased occupancy.

• Boost Occupancy During Off-Peak Times:

Using different rate types can significantly impact your revenue. Through strategic pricing, you can optimize revenue during peak seasons by offering higher rates, and fill rooms during off-peak periods by providing special promotions.

• Enhance Guest Experience:

Package rates that club room reservations with amenities or services such as dining vouchers or spa treatments can enhance the overall guest experience. Guests often appreciate the convenience and value of having everything they need included in one package.

• Compete Effectively:

Having a range of rate types can set your hotel apart from the competition. In a highly competitive market, this flexibility allows you to be agile and responsive to changes in guest preferences and market dynamics. Being able to offer unique deals or negotiate corporate rates with local businesses can give you a significant edge over rivals in your area.

• Ensure Long-Term Viability: 

Diversifying rate types often leads to guest loyalty and repeat business. When guests find rate types that match their needs and preferences, they’re more likely to become loyal customers. This loyalty can translate into repeat bookings and referrals, reducing your reliance on costly marketing efforts and increasing the lifetime value of each guest.

How to Use Different Hotel Rate Types to Maximize Revenue and Occupancy? 

Maximizing revenue and occupancy in a hotel involves the strategic use of various rate types effectively. So, let’s break down how you can use different hotel rate types to earn more and fill up your hotel rooms. 

Start by figuring out the kinds of people who might want to stay at your hotel. Each group of people has different likes and dislikes, as well as how much they can spend. Make sure your prices match what these different groups of people want. Reduce rates during low-demand periods to attract budget-conscious travellers and raise rates during high-demand periods to maximize revenue.

Understand your property’s booking patterns, trends, and guest preferences. Based on that you can adjust your property’s rates accordingly. You can also leverage seasonal promotions and flash sales to generate buzz and boost occupancy during specific periods. 

Hoteliers can also encourage guest loyalty by offering exclusive rates and perks through membership or loyalty programs. Offering competitive group rates and accommodating large bookings can fill rooms during low-demand periods. Thus, different rate types can be adjusted accordingly to maximize your occupancy and drive revenue throughout the season.

Using Automated Tools & Software to Implement Various Rate Types

 A revenue management system (RMS) is a software application that can help you optimize your pricing strategies. RMSs can track demand, forecast occupancy, and set rates automatically. 

An automated revenue management system empowers hotels to make data-driven decisions, adjusting rates dynamically based on real-time factors such as demand, competitor pricing, and historical booking patterns. 

These systems optimize revenue and occupancy by automatically adjusting rates across various rate types. Moreover, reservation management platforms enable hotels to offer a wide range of rate options online, making it easier for guests to find and book the rates that best suit their needs.

A well-implemented revenue management system can be a game-changer for your hotel, automating your complex pricing decisions and ensuring that the right rates are offered to the right guests at the right time. 

“ eZee Mint is one such smart and user-friendly revenue management software that applies intelligent pricing strategies.”

The post Strategies for Maximizing Hotel Revenue through Rate Type Management appeared first on eZee Absolute.

To reach such heights in terms of profit or revenue generation one needs to have immense knowledge of the hospitality industry and its marketplace. (As knowledge alone creates all the difference.)

This is why every hotel owner puts a lot into serving its guests but only a few get an impressive revenue collection. 

Most of the time, this happens because of the fragile pricing strategies hoteliers set up without analyzing guests’ behavior and insights into the latest marketing techniques.

In one of our old blogs, we previously discussed various pricing strategies that hotels should be aware of. But in this article, I aim to expand upon that list and delve into some more unique pricing strategies to help you level up your revenue generation game.

So get ready and follow along if you want to attain excellence in the revenue department of your hotel.

Why Is It Important to Set Pricing Strategies?

The sole purpose of any pricing strategy is to optimize your revenue.

Let me be clear that setting prices on your rooms and services doesn’t count as a pricing strategy. It is how you mold and manipulate your prices according to the market scenario and your guests.

Let’s examine this with a scenario:  

All the hotels near your property are struggling through the shoulder season. To stay afloat and drive more bookings, they cut down their prices, whereas you kept them intact. Turns out, they came out well and you experienced a great loss.

Therefore, you cannot just put up the prices and let it be. It is a process that needs constant revision. You must have a great sense of the current market and ongoing trends in price modulation to do so.

 But I’ve got it all covered in the next section Let’s hop in, shall we?

Pricing Strategies to Optimize Your Hotel Revenue

Hotel revenue management is a tricky affair and there’s no single magic formula to optimize it. You require a blend of various strategies to ripe out the maximum benefits.

This is why I am mentioning some unique tactics for you to skyrocket your hotel revenue. 

1. Value-based pricing

The simplest pricing strategy is value-based. It is the cost that your service must get in return.

For example, a smoking room will have more price than a non-smoking room because it has an additional service that tops up its value. Same way, beach-facing rooms will have more value and thus more price.

So, what you are providing to your guests, how much that particular service costs you, or its value range across the market decides this type of pricing.

Value-based pricing is never negotiable. Because it drives you the minimum profit your rooms & services deserve.

2. Package pricing

Nowadays travelers lookout for good packages instead of arranging things separately. So it is important to build your packages and let your guests avail them at the right prices.

By including taxi/cab rides, complimentary meals, a local guide or tour, co-working spaces, a spa, laundry facilities, and much more in a package, you can make comparatively high revenue.

What you do is: keep a room booking, let's say at ₹8,457 for a week (high from its usual value), and a package with all the facilities at ₹9,849. Your guest will perceive that within a minor difference, they’re getting so many things.

Most of the time, they do not require all of these facilities but still tend to get overwhelmed by them and sign up willingly.

Even if they use them all, it is anyway beneficial for you. Because it helps in upselling your services.

3. Captive product pricing

Captive product pricing is to set a combined price for two or more services that are co-dependent.

For example, an ordinary room costs ₹5,000, and using the swimming pool has an additional charge of ₹800 which makes the total ₹5,800. However, if you choose a poolside room that costs ₹5,600 then there are no additional charges for using the pool.

This is how you can increase the sales of your poolside rooms. So every person who wishes to swim will ultimately buy your poolside room that costs high.

This pricing helps you increase the sales of your best rooms by adding a complementary thing to them.

4. Market-penetration pricing

When you introduce a new service or upgrade your hospitality, it is important to make it popular and known among your guests. This is the only way to make it win its place in the market.

To give this new service optimum exposure, you need a market-penetration pricing strategy according to which, you must keep it partially free at the start and increase the price with time.

If you have opened an in-house restaurant at your hotel, you can keep the first meal free for all your guests. This will market your restaurant effectively and its sales will increase fast.

5. Psychological pricing

A psychological pricing strategy is important for attracting your guests. It makes your price look good and affordable.

This price plays with your guests' psychology and convinces them that it is reasonable. The basic example is putting ₹999 for the swimming pool charges instead of ₹1000. This difference of one number somehow creates a lot of differences in the human brain.

Besides this, promoting offers and discounts is also a psychological game that excites your guests. They give in quickly if you showcase that a ₹9,899 package is available at only ₹7,599 if they book within a day. Note: This is how you make sales in your shoulder season.

Learn more about aligning your marketing strategies with your guest’s psychological responses below.

Psychological Principles for Better Hotel Marketing

6. Promotional Pricing

This is the average and the comparatively lowest price you use to promote your hotel. It helps attract your guests to your website. With this, they explore other things you offer and increase your chances of getting bookings.

So if the lowest room or package that is available at your hotel is ₹1,899 and the highest package is ₹10,899 then your promotional price must be the former one that is lowest.

It will amaze your guests that your packages are starting at such affordable prices and thus, they will visit your website. This will drive more traffic to your website and will increase your bookings and revenue altogether.

 Promotional pieces are mostly the one that highlights the least starting prices of your rooms.

Dynamic Pricing to Ace Your Strategic Game

All the strategies I discussed above are proven for optimizing your revenue.

But what is the real foundation for them?

Dynamic pricing!

The marketplace is ever-changing. What is selling out this week might not get any attention in the upcoming weeks. Therefore, you need to change every instant. (I am not exaggerating)

Recently when I was planning to book a homestay through an OTA platform, I was amazed at how quickly the price was fluctuating.

When I visited this XYZ property many times, its price went up within hours because they tracked that I am interested in it and will book eventually. After that, I started exploring other properties for a couple of days. Guess what! The rate of that XYZ property dropped again.

A dynamic pricing strategy analyzes every aspect of the marketplace and sets an ideal price for your services. It keeps fidgeting rooms’ prices across all your online profiles. This fluctuation in price ensures maximum profit at any given time.

But making all these calculations and analyzing the prices manually is NOT easy. You need a perfect revenue management system to do so. You can check out eZee Mint which streamlines the process of setting intelligent pricing strategies at the right time to optimize your revenue.

 

The post Secrets to Boost Your Hotel’s Revenue: Pricing Strategies You Need to Know appeared first on eZee Absolute.

While many hotels are making the best out of it to boost their bottom line, some are still thinking of it as a mythical unicorn.

I kid you not, most of the hotels refrain from opting for any sort of revenue management services.

Who is to blame for it?

The hotel revenue management myths that are swirling around are the real reasons hotels are so skeptical about it.

So, I decided to debunk some common myths about revenue management systems and managers and make your life easier. 

Let’s Bust Some Revenue Management Myths

Before going ahead to shoot down all the misconceptions, I have a little something to say.

“Do not shy away from revenue management. It helps you better manage resources, predict customer wants and needs, and come up with the most effective pricing strategies to boost your hotel’s revenue.”

Myth #1: Automation will eliminate revenue managers

With the rate at which automation is invading industry after industry, different viewpoints have emerged in the revenue management community. Many believe that revenue managers’ jobs would be at stake.

However, that’s just one of those hotel revenue management myths.

Although revenue management software is instrumental to many hotels, it is a tool that helps revenue managers do their job much more efficiently, eliminating manual tasks.

For example, a hotel utilises various channels to drive booking. But imagine how tedious it would be to adjust prices across all the distribution channels. This is where a revenue management system comes in; it does the job without having to individually log in to each of those channels.

Revenue managers are at the heart of this entire segment, without their analysis and decision-making capabilities, it is not going to be easy for hotels to reap the best benefits.

So, sit back and relax, revenue managers aren’t going out of the scene.

Myth #2: Revenue management is only for mathematics enthusiasts

When we talk about aspects like pricing, revenue, or budgeting, many think that it is the job of someone who has a strong grip on mathematics.

But in reality, it is not true again. Mathematics is a part of it and not the entire segment. If you’re a mathematician, perfect. If you’re not one, no problem at all, you’re still good to go.

Rather, hotels when hiring revenue managers, look for people who have an understanding of a hotel’s business indicators and possesses analytical thinking.

After all, it is all about predicting guests’ behaviour, optimising room availability, and selling rooms at the right price at the right time to the right guest, thereby maximizing revenue.

Myth #3: Changes in pricing must be handled by revenue managers themselves

Just like the ones who think that automation is going to wipe off revenue managers’ jobs, there is another set of people who have a misconception that price changes cannot be automated.

I really wonder who spreads all these myths of revenue management.

Let me clear this for you.

A revenue manager cannot spend all day logging into various channels and changing prices. That is the reason there are automated revenue management systems that do the job, allowing the revenue manager to focus on making important decisions.

Myth #4: Revenue management systems are always expensive

Another misconception that holds back hoteliers from incorporating a revenue management system is that ‘all these systems are expensive’.

Again, this is not true. Not all revenue management systems are expensive.

This myth has gained momentum because RM services are being adopted majorly by high-end accommodation providers. And this makes the budget players feel that they need a humongous amount of money to reap its benefits.

That’s not all. Initially, large hotel chains and properties were well aware of revenue management and they were quick to opt for it. But many budget hotels have refrained from learning about such strategies.

And I am not making this up at all, because I have had the first-hand experience.

In 2019, I was in Matheran. I booked a nice hotel. The property wasn’t a big one but it was beautiful and gave me a luxurious experience.

I was wondering how come they have not been able to scale. 

They had so much potential — the staff, service, rooms; everything about it was just so perfect.  But despite all of it, they were having a tough time increasing their profit.

A day before my check-out, I had a long conversation with the hotel owner. To be honest, I was surprised to know that he thought revenue management services are only for high-budget hotels as they are expensive.

Not just that. Someone even told him that it’s risky and he’d lose all his money.

So, you can imagine how many such hotels have half-cooked information like this.

Myth #5: Budgeting and demand forecasting aren’t important in revenue management

When it comes to hotel revenue management, budgeting and demand forecasting play a crucial role. And if someone has told you otherwise, you can just let that advice go; it is just one of the myths of revenue management.

While hotel budgeting helps in estimating revenue and expenses, demand forecasting allows revenue managers to predict future guest demand over a defined period.

Demand forecasting, Budgeting, and revenue management are all interlinked. For a smoother and profitable functioning of a hotel, they need to go hand in hand.

Meaning, when you have such information at hand, it gets easier to make informed decisions regarding a hotel.

Myth #6: Outsourcing revenue management services aren’t worth

Whoever has started this myth must have not checked the pros and cons of having revenue management in-house vs outsourcing.

Let me explain this to you with a scenario.

An in-house revenue manager, no doubt, will have a lot of knowledge and experience. But if you look closely, s/he spends most of their time working with only one property i.e. your hotel.

On the other hand, an outsourced revenue manager has more exposure. S/he works with various other hotels and gets a wide view of the industry.  

Meaning, they are skilled and have carefully developed techniques that help you improve your bottom line.  

Investing to outsource revenue management services is absolutely worth it. Just make sure the service provider has a proven track record of its work.

Myth #7: Overbooking is a curse and should NEVER be used

Overbooking can make or break a hotel; it is like a double edge sword.

However, calling it useless is one of the huge misconceptions about hotel revenue management.

If you aren’t aware of overbooking, it is a strategy used by revenue managers to acquire more reservations than the number of available rooms to achieve the highest possible occupancy rate.

What does a hotel want? 

100% occupancy rate and better revenue. 

If used cautiously, with proper planning, analysis, and calculation, it can significantly help you achieve the same.

Myth #8: Revenue management doesn’t help hotels already in loss

I am sure many of you have heard this — “You’re already in loss/not making enough revenue. Why would you want to invest in some revenue management service?”

If you have received such advice in the past and believe that revenue management services cannot help hotels in loss, then let me burst your bubble. It is a huge misconception.

The prime job of a revenue manager or a revenue management service provider is to bring you dollars.

Now, if you’re wondering how would you pay for such services? There are a lot of service providers who give you a trial period to test their offerings. You can always opt for them.

Not just that. Many service providers only take payment once they achieve their goal.

So, do look out for such service providers if you’re having a tough time paying upfront.

Myth #9: Hotels under construction shouldn’t consider revenue management

Your hotel is still under construction? No worries, you can still opt for revenue management.

Many hoteliers wait for their hotel to start operations and then go for services like revenue management. However, that shouldn’t be the case. 

A hotel needs to be prepared from day one. And this is exactly what revenue management helps you with.

While the property is still in construction, you can leverage it to learn about the market segment, sales strategies, carry out compset analysis, work on pricing research and processing, and forward planning of market demand cycles.

Do you see how prepared you’re going to be when you cut that ribbon?

Not to mention, if there are provisions, you can actually make changes to your hotel rooms as per what you have analysed. 

The post 9 Common Myths About Hotel Revenue Management. Let’s Debunk Them. appeared first on eZee Absolute.

There was a time when excel sheets were becoming all popular and every hotel was using it.

BUT, if you turn the pages of history, you would see that it didn’t take technology much time to replace it.

What’s next?

Hotels that could see this change coming were prepared and opted for all the latest technologies quickly. And the rest had to struggle and eventually switch.

This is how it works and is going to be working the same way for years to come. Meaning, that future-ready hotels are going to have a great advantage in this industry. 

Now, “Is your hotel prepared for the next wave of transformation?” is the question that needs to be addressed.

The Importance of Being Forward-Looking for Hotels

Hoteliering isn’t an easy job. You have to constantly keep a keen eye on what’s happening in the industry to deliver top-level services to your guests. 

Let me tell you about this with a small example about a hotelier cousin of mine who had a bad downfall.

(Changed the name to Shivani to keep safe her privacy)

Shivani was a hospitality enthusiast. Back in 2012, she was running a famous backpackers hostel called “The Den” near the Mawlynnong village in the East Khasi Hills district of the Meghalaya state in North East India.

The Den was the bee’s knees among backpackers, solo travelers, and bikers back in those days. But then in 2019, Shivani had to shut The Den because business was going super low and eventually hit the rock bottom.

When I started writing this blog, I had this section in mind already. So, I decided to have a colloquy with my cousin and gather a few points.

Here are a few points in Shivani’s own words about The Den’s downfall:

1. The very first thing that affected our business is that we neglected market analysis. I was a little rigid and always thought that things are going to be great throughout. However, I failed to notice that the preferences of travelers were changing every year.
2. The Den was a beautiful abode. BUT, it wasn’t tech first. You all may find it funny and silly, but we didn’t have a property management system or anything technological. We were on excel. And I regret it. Really!
   I have a piece of advice for all the hoteliers out there. Accept it or not, technology is crucial (the right set of technologies, to be precise). You just cannot scale without it.
3. Our hoteliering practices, especially mine, were old school. See, sometimes you feel that being old school is what makes you authentic. But it doesn’t work all the time.
   Travelers today aren’t the same as they were a decade ago. They want internet, comfortable rooms, complimentary breakfast, etc. Budget traveling is rare nowadays; people want facilities even if it costs them a few more bucks.
4. Another mistake was that we never had a strategy. We never strategized how to price our rooms, what amenities to include, etc. There were times when we offered way too much to our guests at a minimal price. Wish I could go back in time and tell those guests, “hey, you need to pay 2000 extra for that.”
5. We didn’t have a roadmap. We were just operating and living in our small happy world of serving guests. We never thought about how we would want The Den to look like or become a few years down the line. And it was a BIG mistake.

How to Future-Proof Your Hotel?

Future-proofing your hotel is basically about keeping abreast of all the happenings in the industry. And there are certain elements that you need to incorporate ASAP.

Let’s look at everything that can future-proof your accommodation business.

1. Streamline and automate operations

I cannot emphasize enough on this point. We are 2022 and if hotels are still around from one department to other, then there’s something really wrong.

This is a tall straightforward statement but true.

If you want to offer a great guest experience, you need automation. And that can happen when you leverage the power of technology.

There are various management systems that automate your hotel’s operations end-to-end.

For example, someone makes a booking at your hotel website, and in a manual scenario, you have to track that booking and update it on your system, excel sheet, or register. But if you have an automated system, the room inventory would get updated without leaving any space for error.  

Not to mention, the major benefit is your hotel staff is now left with more time that they can utilize to communicate with guests and offer great hospitality.

2. Move your hotel to the cloud

Now, I say move your hotel to the cloud, I don’t mean using a slingshot and landing on an actual cloud. Rather, I mean to leverage the power of cloud technology.

A cloud-based property management system is a great example of this. It runs on SaaS (Software as a Service) platform and offers an easy way to manage your operations.

To be more specific, all it requires is a browser and a favorable internet connection. Every function is executed and the information is stored in the cloud.  So, cloud hotel software does not need any IT personnel or department for maintenance.

Not to mention, with the cloud, you can manage your hotel operations from anywhere at any time.

Want to know more about the cloud? Here are three articles you might want to read:

• Why Should Hotels Move to Cloud PMS?
• Cloud vs On-Premise PMS for Hotels: Which is Preferable?
•  How Cloud Can Enhance Guest Journey at Your Hotel

3. Ace your hotel distribution game

When it comes to selling rooms, it goes beyond emails, travel agents, phone calls, walk-ins, and even booking from your website. You as a hotelier have to explore varieties of channels and see from where you can acquire reservations.

Simply put, you need to have a strong distribution strategy in place which revolves around a mix of channels through which you sell hotel rooms.

Now, the concept of hotel distribution is vast and requires you to understand various aspects of it. Be it about OTAs, direct bookings, pricing strategy, or maintaining rate parity, you must get your hands on everything. 

4. Create a pro-employee and pro-guest culture

For a hotel, irrespective of the shape, size, and type, to become future-proof, it is important to create a culture that is employee-centric and guest-first.

Why so, you ask? Because technology, strategies, and everything else works only when your people are happy.

Hotel staff who are valued as a whole person and not just an employee always delivers. Satisfied staff means satisfied guests, and this leads to profitability and scalability.

So, what does the culture look like at your hotel? Something similar to what is mentioned above?

If yes, you’re doing great.

If not, it’s never too late to care about your people.

5. ALWAYS stay true to your budgeting

Budgeting is a critical part of a hotel’s overall success.

But how is it related to making your property future-proof?

Well, the way I think of it is that no matter what you incorporate into your hotel, you need to have a budget for it. Anything that affects your budget is something that might hamper your accommodation business. (https://artandhistory.org)

In simple words, what I mean by this is that you have to know how much money is coming in and going out of your business.

For example, you have analyzed and understood that your hotel would need to invest in a lot of technological elements. But do you have the budget to deploy all of them? If yes, great. If not, you might want to consult your finance personnel and check what you can afford right now, for what you should wait.

If you want to learn more about hotel budgeting, here’s a detailed piece of article.

6. Keep a finger on the pulse to check for trends

Whenever you decide to become forward-looking for your accommodation business, you must start checking on trends.

When I am saying trends, I don’t just mean travel trends, but technological and operational trends as well.

For example, is your hotel equipped with a marketing automation tool to send timely emails to your potential and existing guests? If no, then this is something you might want to incorporate.

Now, you can top this up with compset analysis, which is basically evaluating your competitors’ services and products in order to strategize your accommodation business’ growth.

Simply put, you get a clear picture of what you are up against, what you’re missing out on, and where you’re leading.

7. Timely analyze your hotel’s performance

Before you could make your hotel all great, you have to first understand how your business is faring.

What does the popularity of your property look like in the industry?

What is the occupancy rate of your property?

How much investment do you make every year — on marketing, operations, technology, etc.?

And is your hotel making enough revenue?

These are just some of the surface-level questions you need to find answers to. If you have them, then you’re pretty close to understanding your hotel performance.

All in all, analyzing the performance of your hotel or auditing helps you develop a much-needed trust in the market and ensures that your hotel business is free and fair from all types of frauds, losses, and everything in between.

8. Double down on revenue management

There’s this hotel that has the same pricing throughout the year. And on the other hand, there’s another that sets room pricing based on demand.

Which one is more likely to make a better profit? The former or the latter?

You know the answer.

Hospitality revenue management is a crucial element for any hotel to scale and stay competitive for years to come. It uses demand-based variable pricing that empowers your hotel to make better revenue throughout the year.

If you have not yet leveraged the power of revenue management, it is high time to do so.

We have been doubling down a lot on it from the very get-go. You check out our repository of revenue management to learn more.

9. Incorporate contactless solutions

There’s a huge misconception that contactless hospitality solutions came into the frame only because of Covid. It’s not true at all.

We at eZee have been offering contactless solutions way before the pandemic hit. But why would we do that? Because eZee could see that there was a huge segment of travelers that wanted hotels with contactless services.  

Basically, travelers wanted more power — they wanted to select their rooms, check-in without waiting in a queue, make payments through their phones and check out as easily as possible.

Now, the question is whether this is going to be there a few years down the line.

And the answer is an absolute yes because travelers’ preferences have changed through the years and people are going to be game for hotels with contactless solutions.

10. Leverage Open API

Open API (application programming interface) is a publicly available software intermediary that lets two applications connect for a specified task. You can also say that it is a middleman that helps two applications communicate and function in sync.

But why do hotels need to leverage open API?

Let me help you understand this with an example:

Hotel Rooftop Velar has recently deployed a hotel PMS. Impressed by the capabilities of the system, the hotel has decided to opt for a hotel booking engine integration. Now, this is where open API comes into the picture.  The hotel booking API that is used to integrate the booking engine with the PMS makes it possible for the hotel to update room inventory automatically every time it receives a reservation through the booking engine.

So, what happened here is the hotel made all its systems work in sync and what open API has done is it bypassed the tedious and lengthy process of integrating all the systems.

Want to know more in detail?

Here’s a blog for you: Everything About Open API in Hotel Industry.

11. Rely on DATA. Please do

The hospitality industry is data-rich and the key to maintaining a competitive advantage has come down to ‘how hotels gather, manage, and analyze this data.

But is data really that important? ABSOLUTELY YES!

Data gives you the ability to predict what the industry is going to witness in the years to come. It makes you and your hotel prepare for it to boost profitability.

Let’s take the example of future demand data.

Future demand data gives you insights into your source market to see how demand develops. Meaning, it enables you to predict how many guests will stay in each room during a given period.

When you have such kind of information at hand, you become better at strategic planning to future-proof your hotel, keeping your hotel business as competitive as possible.

The post The Ultimate Guide to Future-Proofing Your Hotel appeared first on eZee Absolute.

Yes, that’s what I am talking about (AGAIN) in this blog. But why am I emphasising (I would rather say re-emphasising) on it? 

It’s because hotels are still not taking this strategy seriously. They are either operating in denial or under the influence of some myths.

That shouldn’t be the case, at all.

Revenue management is a blessing in disguise. And with this blog, I am going to put the accent on the importance of hotel revenue management.

Revenue Management for Hotels is REAL

The best way I can explain the importance of revenue management in the hotel industry is by giving you a scenario.

Imagine a hotel without any sort of revenue management strategy. It has set prices for all its rooms that remains the same throughout the year; even during the times when the demand is high.

Is it likely to make any significant profit? I really don’t think so.

Now many of you (especially the ones who aren’t pro-revenue management) might say that hotels would still make good money and sustain without such strategies in place.

Yes, that’s true (to some extent). 

But when it comes to the broader picture, it is much more than just sustaining.

The hospitality industry is highly competitive and is ever-evolving. And to stay ahead of the curve, accommodation providers need to hit the jackpot. Meaning, they MUST boost their overall revenue so that they can scale.

This is how the scenario looks like with revenue management

For instance, a hotel is well aware of all the nuts and bolts of revenue management.

From customer segmentation, demand forecasting, inventory management, to applying dynamic pricing, the hotel never leaves a stone unturned.

When the demand is high in the region, the hotel owner knows what sort of pricing to keep, how to create packages, what should be the ideal cancellation policy and more.

As a result, the hotel has rarely seen any sort of downfall.

If this doesn’t convince you that revenue management for hotels is real, then I don’t know what would?

Why are Hotels Still Shying Away from it?

Demand-based variable pricing is at the core of hospitality revenue management. And this is where hotels get into the dilemma of whether to implement it.

Also known as dynamic pricing, this strategy is based on not just consumer demands, but also on competitor pricing, seasonality, current occupancy, and other factors.

Many hotel managers believe that this way of pricing hotel rooms is unfair and might even alienate guests by affecting their experience.

THIS IS NOT TRUE.

Hotel revenue management doesn’t decrease guest satisfaction. Rather, it is more about a win-win for both guests and hotels.

That’s not all. Various other myths are swirling around that are making hotels sceptical about it.

In one of our blogs, we have debunked some common myths about revenue management systems and managers. Do give it a read.

Read: Common Myths About Hotel Revenue Management

The Articles You MUST Read About Hotel Revenue Management 

No matter how much I emphasise revenue management, it is never enough. During all these years in the hospitality industry, I have witnessed first-hand how properties reaped the benefits of hotel revenue management.

Not just that. I have also researched and written about a lot of articles on this aspect in-depth.

And here are some of the articles on revenue management I want you to go through.

Do hotels need a revenue management system?

A revenue management system is used to optimize hotel room pricing and inventory. To do that, the software analyses various types of data such as internal data, market supply, and customer demand.

Now, hotels that solely rely on revenue managers think that they don’t need any sort of software.

However, that shouldn’t be the case.

A revenue management system is more like a companion to revenue managers. It simplifies their tasks and enables them to reach their higher potential. Thereby, boosting the hotel’s revenue.

Click the button below to learn about the advantages of having a revenue management system at your property. The points information in this article is legitimate.

The dos and don’ts of revenue management

Revenue management, no doubt, is one of the most prominent aspects of a hotel. However, it’s a tricky task to get it right. 

It is not just about survival; it is much more than that. Hoteliers need to consider going beyond the basics of this phenomenal revenue-boosting strategy.

So, how to do revenue management for hotels?  Is there a way to hit the jackpot? 

That’s exactly what the following blog discusses — all the strategies of revenue management to improve your overall bottom line.

Get it in-house or outsource it?

There’s a huge dilemma among hoteliers; they aren’t sure whether to go with an in-house team of revenue managers and systems or opt for outsourcing.

Both in-house and outsourced revenue management have their own set of pros and cons. Further, it depends on the hotel what suits them best.

However, as a hospitality blogger, I have done my research. I found that the hotel industry is dynamic; technologies, strategies, services, everything keeps evolving. And, revenue management is no exception!

For hotels to keep up with the industry and take advantage, they need to stay abreast with all the latest trends. And in that case, outsourced revenue management wins the race.

To learn why is it so, click the button below.

How to hire the right revenue management service provider?

For instance, you have decided to work with a revenue management service provider. But, how are you going to determine whether it’s worth your money and time?

Knowledge of all the parameters to assess service providers gives you an upper hand. However, it’s understandable that not every hotel owner would have the know-how of revenue management. If you’re also one of them then, we have got something for you.

In our article on picking the best revenue management service provider, we have covered almost every single element of this process. You can even use it as a step-by-step guide.

If you follow all the mentioned steps, and more, then Congratulations!!! You’re this close to hiring the right revenue management service provider for your hotel.

Hotel revenue management strategies for 2022

While I have listed all the prominent articles to show the importance of hotel revenue management, I have kept this for the last.

The hotel industry has witnessed all the peaks and valleys in the last two years. It has become certain for them that “the effective strategy of yesterday is no longer relevant today.” Meaning, it is time to hunt for the latest tactics.

Here are all hotel revenue management strategies that are going to benefit your property in 2022. Try them out and witness the impact for yourself.

Revenue Management is the Need of the Hour for Hotels

Last year was pretty good for the hotel industry. Restrictions were lifted, people were travelling, hotels were getting booked and whatnot. It seemed that things are getting back to normal, all over again.

But, we only see one side of the story. While many hotels were reaping the benefits, many were still struggling to revive.

I have been in constant touch with hoteliers from various countries and segments. And one of the common reasons was a broken strategy; a strategy where they failed to price their rooms the right way; a strategy that didn’t focus on guest segments and preferences.

Let me get this straight.

The covid-19 pandemic has changed the way people travel; the needs and wants of guests have transformed drastically in the last two years. Moreover, it is likely to remain the same for the coming years as well.

This is where revenue management comes into the picture.

With the help of data, revenue management practices enable hoteliers to find solutions to what may seem like complicated problems. And this is what differentiate profitable hotels from the ones that don’t leverage revenue management.  

Now, if you say,

“Harsh, I understand that my hotel isn’t making the profit it deserves. But that doesn’t mean I will raise the room prices. It might upset our guests.”

This is what most hoteliers think of when someone tells them about strategies to boost revenue. They feel it actually alienates their guests and drop their sales.

Again, that’s not legit.

The thing is, revenue management is not about raising prices at any time. Rather, it is based on the grounds that say if a hotel is recognised as quality, then it has all the rights to price its room higher.

Talking about the guest satisfaction aspect, people will definitely pay the price you set for your rooms if you deliver value. Period.

The post Hotel Revenue Management: No Luxury. It’s Need of the Hour! appeared first on eZee Absolute.

At present, revenue management systems are gaining a lot of traction. And why not? After all, there are a bunch of hotel revenue management software benefits.   

And in this article, I am going to talk about some of those aspects that make revenue management systems a great deal for hoteliers.

What is a Revenue Management System?

A hotel revenue management system is used to analyse various data such as internal data, market supply, and customer demand to optimize pricing and inventory. Simply put, it helps hoteliers in calculating the ideal rates for rooms and maximising the bottom line.

With time, revenue management systems have evolved tremendously. And amid all of it, artificial intelligence has made a major impact by automating most of the mundane tasks.

AI-powered revenue management systems now enable hoteliers to maximise revenue by selling rooms to the right guest, at the right time, at the right price and through the right distribution channel.

Benefits of Revenue Management Software

The revenue management segment in the hotel industry is quite vast. There are revenue managers, revenue management services, automated systems, and whatnot.

However, there are various misconceptions around. A significant number of hoteliers aren’t aware of the hotel revenue management software benefits.

For example, many hotels stick to revenue managers and never turn to an automated system. Which shouldn’t be the case.

A revenue management system should definitely be there in your hotel’s infrastructure. If you’re unsure, here are some of the top benefits of incorporating a revenue management tool.

1. Easily integrates with a property management system

One of the biggest benefits of using revenue management software is that it integrates with the property management systems (if not all, then at least almost all of them).

Now if you’re wondering how it is beneficial, let me explain.

Revenue management systems work on data. But, where this data is going to come from? You can either feed it manually (which I am sure nobody would like to do) or source it directly from your PMS.

This is when the real job of an RMS starts. And this brings me to the next point.

2. Let’s you analyse better and get an accurate matrix

A revenue management system gathers historical information on hotel rooms, rates, and revenue when integrated with a PMS.

Not just that, an RMS gathers all the required information when you get a new reservation.

Next up, the RMS analyses all the data and returns an accurate matrix of pricing recommendations based on the market and room type.

Furthermore, you also get a crystal clear view of all changes you need to make not only in terms of pricing but also target market and various other aspects.

No doubt, an RMS does all of it automatically; however, you can still choose to intervene and make changes to your hotel pricing. Just make sure, your analysis is apt and is in line with the hotel’s revenue forecasts.

3. Saves a lot of time

Automation is one of the prime hotel revenue management software benefits.

And without an inch of doubt, it saves time. End of story.

The amount of data that a hotel generates and is already there in the industry is immense. And for a human to analyse all of them and to make sense out of it, would take a LOT of time. Which doesn’t make any point.

Not just that, there are various other mundane tasks that actually don’t require any human involvement. But if you’re still engaged with them, then it’s pretty much a waste of time.

However, on the other hand, revenue management systems significantly cut down on the amount of time humans spend gathering data. Because of automation, everything is on hand ALWAYS.

4. Goes lighter on your wallet

Another benefit of adopting hotel revenue management software is that they are much more reasonable compared to hiring extra revenue managers (meaning, more manpower).

There are service providers that offer revenue management systems with amazing packages. And it is certainly worth it.

You can get all the tasks done on time without burning a hole in your pockets.

You can also refer to our hotel revenue management eBook for more clarity.

5. Provides revenue estimation

Automation, time and cost-saving, data gathering, etc. are just a few advantages of having a revenue management system. But did you know that it also provides hotels with revenue estimation?

Based on your pricing strategy, revenue management also helps you calculate the profit your hotel business is likely to make. Which in turn enables you to try out different strategies and estimate your profit margin.

6. Helps in market segmentation

Market segmentation in the hotel industry is grouping different types of guests and narrowing them down to better fulfil the needs and wants.

With a segmented market, hotels can tailor personalised marketing campaigns and thereby, attract more guests.

A hotel revenue management software also helps in this aspect. It collects a lot of guest data which is then used to segment and create guest personas.

7. Provides rate recommendations

Revenue management systems nowadays are equipped with technologies like artificial intelligence. Meaning, they use sophisticated algorithms to perform certain tasks.

Now, when a hotel revenue management software is fed with data such as past performance and current market data, the algorithms running in the background quickly and accurately recommend ideal room rates.

This is indeed one of the major advantages of revenue management systems.

If the same thing was to be done by a human, it would take a lot of time.

8. Does compset analysis

Most of the hoteliers think that every hotel next door is a competitor. However, that’s not the case.

It is important for hotels to know who their competitors are.

A hotel revenue management software helps hoteliers with just that. It not only lets you understand your competitors but also evaluate their services and products to strategize business growth.

Compset analysis is crucial in the hotel industry and with a robust system, the process of keeping an eye on your rivals gets easier.

9. Forecasts demand

Hotel demand forecasting is about predicting future demand over a defined period. It could be in terms of operation, finance or even revenue.  

With a revenue management system, you can manage all the aspects of revenue which is vital for hotels to stay profitable.

RMS already gets access to past and current data, therefore, it gets easier for the system to predict when consumer demand rises and falls. And this forecasting is supremely helpful when you are setting effective room rates to maximise your profit.

FAQs

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