Aligning Your People, Processes and Technologies for Revenue Excellence

By Paul van Meerendonk Director of Advisory Services, IDeaS Revenue Solutions | September 20, 2015

It’s no secret that today’s competitive landscape in the hospitality industry is more intense than ever before, and it’s not showing any signs of easing up. Due to increasing rates of competition and changing customer booking preferences, hoteliers need new ways to differentiate themselves in the eye of the consumer while still providing world-class service and driving profitability across every segment and business unit.

In the Asia Pacific region alone, there are over 2, 360 hotels contracted for opening in the upcoming years - according to the June 2015 STR Global Construction Pipeline Report. At this rapid hotel development rate, hoteliers in the region can expect over 500, 000 new rooms to hit the market. With the staggering influx of new inventory, new challenges will emerge for hoteliers looking to capture market share and produce profits.

What is the best way to manage and benefit from this situation? Despite the fact that almost every hotel manages multiple revenue streams, team members within each stream still tend to make pricing decisions based on the impact of their line of business only. To maximise future revenue and profitability, and stay ahead of the countless other hotels and rooms on the market, savvy hoteliers will need to make a shift toward a more holistic revenue management strategy.

For hoteliers in the Asia Pacific region, sophisticated analytics technology is now available that is capable of aggregating and transforming large, disparate data sets into actionable intelligence for making accurate demand forecasts and strategic pricing decisions. With this technology, hoteliers can begin to think and act more holistically about their revenue strategies.

This evolution in thinking indicates an exciting new beginning for the industry—and it’s the key to differentiating a hotel from its competitors. Hoteliers must begin to think differently about their revenue management strategy, driving profitability through a more holistic approach referred to as Total Revenue Performance.

Moving Analytics Beyond Rooms

Coming up in January 2018...

Mobile Technology: Relentless Innovation

Technology has become a crucial component in attracting and retaining hotel guests, and the need to enhance a guest’s technology experience is driving a relentless pace of innovation. To meet and exceed guest expectations, 54% of hotels will spend more on technology in 2018, and mobile solutions in particular will top the list of capital investments. Many hotels are integrating mobile booking, mobile keys, mobile payments and mobile check-in into their operations. Other hotels are emphasizing the in-room experience, boosting bandwidth and upgrading flat screen TVs to more easily interface with guest mobile devices. And though not yet mainstream, there are many exciting technology developments on the near horizon. The Internet of Things (loT) is taking form in some places, and can be found in guest room control systems, voice activation systems, and in wearable sensors that can be used for access and payment options. Virtual reality headsets are available at some hotels so guests can enjoy virtual trips to exotic locations or if off-property, preview conference facilities and guest rooms. How long will it be before a hotel employs a fleet of robots for room service, or utilizes a hologram as a concierge, or installs gesture-controlled walls that feature interactive digital displays? Some hotels are already using augmented reality for translation services, or interactive wall maps, or even virtual décor. This pace of innovation is challenging property owners and brands to stay on top of the latest technology trends while still addressing current projects. The January Hotel Business Review will explore what some hotels are doing to maximize their opportunities in the mobile technology space.