How do revenue management benefit hotels?
The WHAT
Hotel revenue management is the process of understanding and analysing guest behavior and booking patterns; consequently implementing strategies to increase bookings at the right price at the right time.
Revenue management involves optimizing a hotel’s presence on OTAs, opening new booking streams for the property along with applying dynamic pricing strategies for ideal yield.
How does it benefit YOU?
The advantages of hotel revenue management are many. However, some distinct benefits apply to small and mid-sized hotels to hotel groups alike. Here is how revenue management impacts your bottom line.
Help you forecast booking trends
Revenue managers analyse historical data, booking patterns during day of week, events festivals and guest behavior to forecast booking trends of the next one year for your property. This way, you are prepared about the seasonal changes beforehand and do not have to hassle to get bookings till the last minute.
Let you implement proactive pricing strategies
Detailed analysis and constant monitoring not only help revenue management experts forecast booking trends, but also implement proactive and dynamic pricing strategies; thereby earning you optimum revenue throughout the year. Simultaneously, these pricing strategies optimize your ADR and RevPAR.
Enhance visibility across distribution channels
One of the benefits of hotel revenue management software is the visibility optimization of your property across connected OTAs and metasearch engines. Revenue managers follow industry best practices to ensure that your listing is up-to-date and you’re bookable across these channels, thus improving your rankings.
Build new revenue opportunities
When you outsource revenue management for your hotel, one important advantage you get is the access to market insights. Revenue experts are in constant contact with OTA managers, which helps them gain awareness of the special promotions they are running. These promotions then are applied for your property to earn bookings.
Optimize revenue upto 20%
Often properties do not prioritize revenue optimization owing to a shortage of resources and limited expertise. However, as revenue experts use a customized approach for your property, you get to witness strategies focused to optimize your revenue and achieve upto 20% YoY growth.
Develop and compare forecasts vs revenue reports
Revenue managers keep you in pace with your forecasts vs revenue reports monthly, which help you understand the online positioning of your property, your financial and online health, the strategies applied in the past and those will be applied in the coming weeks and months. As a result, you can make better business decisions.
Grant liberty to focus on the guest experience
Outsourced revenue management enables hoteliers to maximize staff productivity and allow them to utilize their talents to the fullest. Revenue management benefits hotels by streamlining processes, saving man-hours, reducing expenses and providing a better experience to the guests.
Reduce costs of hiring an in-house revenue manager
Although in-house revenue managers have their set of advantages, outsourced revenue management is second to none in terms of industry and market insights. Moreover, outsourcing is more affordable and costs 75-80% less than hiring an in-house revenue personnel.
How YCS helps you in revenue optimization?
Our revenue experts derive insights from booking and revenue patterns of 1000+ properties every day to implement unique optimization strategies for your property. We focus on untouched avenues to generate revenue.
Here’s how we workKnow how much your property can earn
Most hotels can optimize their revenue management processes by 30-40%. However, an outsourced revenue management solution can optimize it by 90%. Our revenue calculator will help you gauge the potential of your property to earn revenue.
Let’s calculate