Which Data Enhances the Optimization Process and Increases Profitability?

By Ahmed Mahmoud Founder, revenueyourhotel.com | October 08, 2017

The more data you have the better but only when the RMS analytics improve price-demand estimates, provide controls for your particular business mix and pricing strategy, and enhance the optimization process. A good example of this is the use of rate shopping data for competitive pricing.

A key evolution-in-the-making in revenue management technology in an age of Big Data is the optimization of profitability rather than revenue generation. Profitability optimization can be undertaken by obtaining ancillary revenue and cost data to generate profit contributions by various customer segments. Ancillary revenues cover the spectrum of food and beverage revenue streams as well as golf, spa, events, even from the rooms such as early check in fees, late check out, no show charges, late cancellation and more. These ancillary revenue streams some of which have no cost involved, thus contribute directly to the hotel’s profitability.

Cost or margin data is required across each customer segment when the RMS maximizes total profitability, since certain customer segments, while contributing extra revenue, can also incur additional variable costs. This data can be shared with other departments within a hotel like marketing and operations to help identify those segments and activities which help maximize profits.

Revenue managers are facing a data overload: competitor analysis, channel production, distribution costs, booking information, customer data and much more. How can they know where to look, what to get out of their data and how to apply it?

Progress is a double-edged sword for revenue managers. With increased information comes more opportunities and the possibility of better accuracy. However, datasets become more complex, workloads increase and knowing where to look and what to measure can be harder. In simple words revenue management data can include but is not limited to the below:

  1. Arrival and departure patterns ( by Co., by time, by segment, by payment methods …etc )

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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.