October FOCUS

Revenue Management: Maximizing Profit

October 2020

Hotel Revenue Management continues to evolve at a blistering pace. Driven by technological innovation and new distribution channels, there are some dynamic opportunities for expansion in this fast-growing field. The technology is primarily designed to help revenue managers further refine their operations and pricing models to maximize hotel profit. For example, hotels can't be all things to all people, so a key strategy is to precisely identify their target audience. By employing geo-targeting techniques and analyzing behavior such as previous bookings, on-property purchases and online shopping practices, there is an increased capability to define guest demographics. By segmenting customers in more specific ways, hotels are able to create more personalized experiences which, in turn, allow managers to optimize their room rates. It is also an effective way to fulfill the unique needs and preferences of the individual. Another methodology is to consistently monitor the competition's pricing strategies. There are software tools that analyze a competitor's current rates, and then allow a hotel to make its own pricing adjustments. It is also a useful means to conduct forecasting models. Other technologies that are being integrated into a revenue manager's toolkit include Artificial Intelligence in the form of automated algorithms, and Voice Recognition (VR) for data inquiries, rate changes, and booking behavior. Predictive and analytic software programs are also being leveraged to provide more forward-looking data, instead of the usual reliance on historical performance. These metrics allow managers to be more proactive - rather than reactive - with their revenue strategy. The October issue of the Hotel Business Review will examine these developments and report on how some leading hotels are executing their revenue management strategies.


Run Date:   09/27/2020 - 10/31/2020
Editorial Deadline:   Wednesday, August 05, 2020
Advertising Deadline:   Wednesday, September 16, 2020
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Coming up in June 2021...

Sales & Marketing: Playing the Long Game

During an economic downturn, it is tempting to slash marketing budgets to make up for lost revenue. But smart hoteliers play the long game, knowing that companies who stay engaged with their customers will be the first to benefit from a rebound. Therefore, now is the time to renew and revamp sales and marketing strategies in order to be ready for what lies ahead. For example, this is a perfect time to refresh website content, social media and SEO.  The same for hotel blogs where content can be updated to give customers inspirational ideas as they begin to travel and meet again. Multimedia assets should also be revised with new photo/video shoots that provide accurate information about how setups, room configurations, and onsite offerings have changed to accommodate safer meetings and social distancing. The June Hotel Business Review will focus on the sales and marketing strategies that some hotels are adopting in anticipation of a recovery in 2021.