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