The Hospitality Industry is back to normalcy in the aftermath of the pandemic. The levels of occupancy in hotels are reaching the pre-pandemic figures and hotels are regaining their foothold. In this scenario it is natural for the hoteliers to start thinking about boosting their revenues and devise plans to increase profitability. But the revenue managers are facing the difficult task to forecast the revenues accurately, the primary reason being the uncertainty of the market.
Due to the unpredictability in the market hoteliers have been hesitant to implement new revenue enhancing strategies. But still the hotel owners need to take a proactive approach and take measures to enhance their profits to cope with the current market situation. In this scenario, reliance on the comprehensive data seems to be the safest solution going forward. Here are the top data-driven revenue strategies for hotels to adapt in the current market.
IMPLEMENTATION OF MODERN REVENUE MANAGEMENT SYSTEMS (RMS)
The acceleration in the hospitality industry comes with its own challenges, due to the pandemic the prevalent models of revenue forecasting such as same time last year (STLY) have become obsolete, similarly the previous trends can no longer be benchmarks for forecasting, specially given the fact that the industry is in continuous fluctuation.
Most of the hotels still use spreadsheets or legacy Revenue Management Systems, these systems are static and cannot keep up with the rapid change in guest trends. The adoption of a dynamic cloud and AI based modern revenue management systems can enable hoteliers to adjust quickly and keep up to date with the current market demands.
With innovations in Artificial Intelligence and growing adoption of technology in hospitality there are a lot of economic and cost-effective revenue management systems available to equip hotels with necessary tools to make necessary adjustments as required by the market.
Dynamic Pricing is the strategy of time-based pricing of the hotels based on the real-time market data. The hotel room prices vary across the year depending on the season and demand. However, this strategy can be implemented taking into consideration the real time data of market demand, competitor pricing and room availability.
Dynamic Pricing is well suited in current market situations as the market trends are varying in quick succession, the utilization of real time data can help hoteliers to enhance their revenue streams. Modern revenue management systems are well suited to adjustment in prices based on shifts in the market.
DATA BASED GUEST SEGMENTATION
Guest Segmentation of guests is the practice of differentiating between various guests based on pre-defined parameters and preparing unique and custom strategies for each group. Some of the key parameters of guest segmentation are business travelers, holiday travelers, tourists etc.
Since the resumption of businesses after the pandemic, group business bookings have seen an exponential growth. This provides the hoteliers with a window to target this specific group and maximize their revenues by introducing lucrative offers for group business travelers.
Similarly, other segments can be targeted when feasible based on real time data. Segmentation allows hotels to focus on a few segments and come up with customized offers instead of putting out generalized offers for large segments.
With uncertainty being a constant factor in the current market, it is the need of the hour for the hospitality industry to rely on real-time data for designing their future strategies. With hotels now focusing more on technology deployment to boost their businesses it is also vital to rely on tools and software that utilize data to develop useful insights.