A new era of travel calls for a revenue strategy focused on adaptability and connected data.
NB: This is an article from TrustYou
Rethinking Revenue Management for a Changed Industry
COVID-19 has brought its share of changes to the hospitality industry. In the short term, we saw a dramatic decrease in travel volume that affected demand worldwide. In the long term, we’re talking about a new era of hospitality, with technology and complex data being deeply embedded into every decision.
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Revenue management also adapted to the market challenges. Low and often inconsistent demand during the pandemic, inflation, and staff shortages have been shaping the pricing strategies in the industry.
Coming back to “normal,” European and American hotels are experiencing a profitability paradox: increased room rates, a continuous recovery in demand, and staff shortages led to higher margins. An automated RMS that can make effective pricing decisions to maximize business and revenue, even in a disrupted market, is no longer a “nice to have” tool. It’s a business necessity.
Alongside complex and evolving challenges, travelers’ preferences have evolved in these pandemic years. This new breed of traveler looks for more meaningful experiences and high-quality and digitalized services to make their stay more pleasant. Price is also an essential topic on the traveler’s agenda. TrustYou’s analysis for Q3 2022 shows that Price is the category most likely to impact a hotel’s performance score negatively. Now more than ever, guests evaluate their stay based on price.
Heading into a new year, quick adaptation to emerging trends and ongoing challenges will make the difference revenue-wise. Exceptional times call for exceptional analytics. Having the right data by your side is crucial. Ideally, this includes a combination of historical and up-to-the-minute insights that would help create flexible strategies in times of uncertainty. It’s also about the bigger picture. The more data you can connect to understand how it affects your performance, guest experience, and revenue, the better.
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