IMPACTS OF COVID-19

The hospitality world was very much shaken by the global crisis of COVID-19 and although we are preparing for the recovery, it will be a long one and will bring lasting changes in the way we manage supply and demand in the hospitality industry. What can we already see coming that wasn’t on the horizon a few months ago? One thing is for sure, technology and the use of software and applications have taken a huge leap forward in the last few months and are more than ever an indispensable asset. Why?

Because they save time, eliminate silos, automate tasks and minimize errors, and above all, maximize the efficiency of existing teams, which are often small or in multi-tasking mode. In reality, most teams have less time and must do more with less, hence the importance of having effective tools.

NEW GENERATION OF CLOUD APPLICATIONS

Older, non-connected RMS systems are out, cloud-based applications (open API) are definitely in. More affordable and offered as subscriptions, they are easy to use, use reliable data from various sources and offer efficient and fast integration support.This is the new generation of players that offer intuitive solutions that deliver ROI in the first year of use. Interconnected applications that use accurate data and ultimately enable better decision making; it’s impossible to imagine working any other way!

THE REVENUE MANAGER 4.0

How has the role of the revenue manager changed in recent months? It’s definitely less focused on a hotel presence because it’s becoming more strategic than ever, uses powerful applications that allow it to quickly analyze trends with real-time data and KPIs.

Strategies were implemented in response to the pandemic: centralizing revenue optimization across properties, working more closely with other departments, and better leveraging data and analytics. “We’ve tried to focus more on the customer journey from start to finish, and then find where we have opportunities to improve the customer experience,” explains Alex Cisneros, senior V-P revenue generation for Red Roof Inn.

Revenue management is no longer limited to pricing, but also includes customer journey analysis. This is a trend we see in many hotel chains. Since 90% of the clientele is at the leisure level, the connection with the digital marketing team is all the more necessary in order to increase the visibility through the distribution channels specific to this segment.

For independent hotels that do not have the possibility to have a dedicated revenue management person, specialized consultants are increasingly called upon to provide support and recommendations to the teams in place according to their needs.

ESSENTIAL RELIABLE DATA

The quality and availability of data and the ability to interpret this information quickly and efficiently has become a panacea for hoteliers. Business intelligence (BI) tools are crucial in order to better manage segmentation, competition, contact points with various clienteles and especially to understand and react quickly when metrics are not going as expected.

No longer do we just want to maximize the average rate based on occupancy, we now need to do analysis to increase RevPAR so that the hotel is open and the bills are paid. “Now everyone needs to see all the different data points at the same time,” says Christen Garb, vice president, Global Revenue Management Operations for the Hyatt hotel chain. “It’s so critical. I think it’s made us better from an analytics standpoint.”

THE REQUIRED COLLABORATION OF TEAMS

Collaboration between the various teams will inevitably be the golden rule for leaders of the future. We’re not just talking about sales, marketing and revenue management, but also other areas such as operations, finance, asset management and real estate. Because these disciplines are all connected and decisions have a direct impact on each other.

THE NECESSARY CUSTOMER COMMUNICATION

Personalizing messages, marketing offers, emails, and newsletters based on patterns that emerge from the data is inseparable from pricing strategies based on product attributes and demand. CRM applications make this connection by enabling you to drive additional revenue by engaging and retaining customers at specific points in their journey to talk to them about what interests them, when they are receptive.

A NEW APPROACH TO FORECASTING BASED ON THE PRESENT AND FUTURE

We are beginning a new era where we rely on the present and the future and not the past to make reliable forecasts. We will not go back to the way things were done in 2019, recent trends will prevail and will continue to evolve. We are using more and more granular data and super-powerful algorithms. Leveraging big data, automation, machine learning and artificial intelligence is literally the future for our industry.

Revenue managers will not be replaced, they are still essential, but modern revenue management systems will make their job easier by allowing for much faster decision making than with older systems. Algorithms will take care of pricing and inventory management and revenue managers will be able to use their creativity and imagination to come up with new and innovative strategies.

HOW TO GET THE MOST OUT OF YOUR GAME?

A revolution is underway, not only for revenue management but for the entire hotel industry! The hoteliers who will thrive after the crisis are those who will be agile, able to adapt and learn quickly and use the technology that is at their service more than ever.

HOTELUS CAN HELP YOU

HOTELUS offers hotel establishments various services related to revenue management: assessment, selection and implementation of applications appropriate to your operations, development of strategies and measurement of results, guidance and coaching.

Contact us for a free evaluation!

SOME REFERENCES

* RMS (Revenue Management System) : IDeaS, GameChanger de Duetto, Pace Revenue, Spot Pilot, Atomize, etc.
* CRM (Customer Relationship Management) : Cendyn, Revinate, LoungeUp, SmartHost, etc.
* BI (Business Intelligence) : OTA Insight, HotelIQ, Scoreboard de Duetto, etc.
* The Revenue Manager Webinar #8 The Travel Tech Channel
* HSMAI & Revenue Analytics White Paper