As hoteliers work to reassemble finances amid the chaos of the pandemic, revenue management software has become invaluable. This technology sheds light on revenue sources, unveils the path to more revenue, and can drive financial stability in shaky times.
Unfortunately, when it comes to narrowing down the right revenue management software, hoteliers have a tough job. There are piles of revenue management programs out there, and each one comes with its own set of complications.
If you’re a busy hotelier, you can breathe easy. We’ve laid out the best ways to evaluate revenue management software and find the fastest path to higher hotel returns.
Why Is Hotel Revenue Management Critical to the Hotel Industry?
Many in the hotel industry don’t understand the critical role revenue management plays. Especially in the current market, hotel revenue management has become a necessity for hoteliers who want their hotels to stay strong financially. Here are a few reasons why:
Monitor the Hotel Market
In the current hotel climate, it’s more important than ever to pay attention to the trends of the market. By examining competitor sets, revenue trends, and in-depth hotel data, a savvy revenue management team will use software to keep your hotel a step ahead of market turns.
Spot New Demand
The current pandemic may have cratered demand for many hotels, but new demand will spring out of the ashes. With proper hotel revenue management, you spot the most profitable opportunities, funnel resources into those moneymaking operations, and drive higher returns.
Carve Out a Clear Path to Profit
Revenue is the lifeblood of your hotel operation. But if revenue is leaking out of your operation through expensive ventures or high operational costs, some sources may not be worth investing in. Proper revenue management will dig into profit-centered metrics, such as gross operating profit per available room (GOPPAR), and stack findings up against all of your hotel’s revenue sources. As a result, it’s possible to see which sources are driving bottom-line growth and which revenue streams you should cut altogether.
Why Is Hotel Revenue Software Important?
The best hotel revenue software will empower your revenue management team to make the moves that will spark higher profit. It lays out the raw materials for your managers to build a plan and push the hotel’s finances forward. Here are a few key things hotel revenue software helps your revenue management team accomplish:
- See Trends First: By diving into the numbers and market trends, hoteliers can spot demand, adjust to customer needs, and make smarter hotel decisions.
- Revamp Operations: Software helps your revenue management team determine how money is flowing. That means they can show you how to trim operations for more efficiency and more cash.
- Determine Occupancy Needs: With the right software, hoteliers can use data to determine rates or occupancy needs, freeing up your day.
- Built a RevPAR Strategy: Hotel revenue software provides the building blocks for an effective RevPAR strategy. It gives hotel revenue management teams the raw materials to craft a plan to bring in more revenue and higher profit.
What to Look for in Revenue Management Software
Wondering how to pick out the best revenue management software for more hotel revenue? Here are a few features that are critical to proper software:
- Accurate Demand Forecasting: You’ll want to know where revenue is coming from and where it will come from in the future. During the chaos of the current market, it can help you see what offerings will spark the most revenue in the future.
- Revenue Optimization: The right revenue management software will reveal how you can tweak operations, cut back dead weight, and invest to drive more revenue.
- Promotion Management: Once you’ve nailed down the areas that will lift revenue, you need to connect with visitors and promote that revenue vein. The best software will help you tackle promotion management with less effort from your team.
- Product/Services Rationalization: With the right revenue management software, you’ll be able to identify what services and products are in the highest demand. Better yet, you’ll be able to track which items you need to promote to increase revenue. By measuring demand and breaking that demand into segments, you can line up the hotel’s offerings with the needs of customers, driving repeat visits and higher profit.
What Hotel Revenue Systems Are Out There?
With technology booming, there’s a wide variety of hotel revenue management programs that are available. Each program has its own advantages, tricks, and uses. Here’s a quick look at some of the most popular hotel revenue systems out there:
IDeaS has been a staple in the revenue management software space for decades. In fact, they’ve worked with nearly 15,000 clients from 140 countries over the course of 30 years. Their technology focuses on analytics and helps identify the best ways to revamp revenue streams for higher gains.
Duetto is built to give hotel revenue management teams data to create in-depth revenue strategies. It’s known for its pricing analytics and segmentation tools. The program is built to help hoteliers boost revenue and outperform their RevPAR index.
EzRMS is an excellent tool if you want to trim hotel margins and revamp pricing. It helps hotels dig into products, demand, and yield. From there, hotel revenue managers can use this data to set up more competitive pricing.
Revenue Analytics is designed to help hotel revenue management teams pore over pricing and solve pricing complications. It’s a good option for large operations that need to simplify pricing and pinpoint their high- or low-performing revenue sources.
Rainmaker is a statistics-focused program that helps your team analyze, segment, and forecast revenue. It’s data-heavy and gives hoteliers an in-depth breakdown of revenue sources. That makes it a solid tool for teams that want to predict market trends and determine their revenue mix.
How to Get the Most Out of RevPAR software
If you want to use RevPAR software to boost profit, it takes expertise. The best way to use RevPAR software is to access a remote revenue management team that personalizes strategies to your hotel. Unfortunately, not all teams will produce the same results. Here’s what to look for when picking out the right revenue management team:
They Should Have a Diverse RevPAR Software Background
Most hoteliers won’t have time to master all of the most crucial RevPAR software programs they need. That’s why it’s a good idea to access a remote revenue management team that are experts in all of the most popular RevPAR programs.
They Should Know the Landscape
RevPAR software can get complicated fast. Your revenue management team should understand insider terms, jargon, and best practices so unclear terms don’t slow down your day.
They Should Combine the Personal and Expert
Your revenue management team should be experts, but a cookie-cutter solution won’t be enough for hotel revenue growth. They need to personalize a revenue strategy to fit the unique needs of your operation.
How Does Advanced Revenue Management Look in Action?
Make no mistake, not all remote revenue management teams will drive the same results for hotels. Here are a few benefits advanced revenue management teams, such as RevOptimum, will give you:
- Data-Driven Strategies: Advanced revenue management teams won’t just give you data. They’ll use those figures to build a strategy that fits the unique needs of your hotel and uses your operation’s strengths and weaknesses to drive more revenue.
- Remote PMS Access: Effectively managing all of your reservations, check-ins, billing, and room rates plays a key role in bringing in more revenue. That’s why your revenue management program should give you remote access to your property management software and help you simplify your tech stack.
- A Full Grasp on the Market: The best remote revenue management programs will comb through internal data along with external revenue indicators and market trends.
- Real-Time Revenue Decisions: If COVID-19 has taught hoteliers any lesson, it’s that hotel demand can turn on a dime. The best revenue management teams use in-depth data to swerve with the market, give you access to live metrics, and open the door to real-time revenue decisions.
Learn More About the Pioneer of Remote Hotel Revenue Management
Interested in learning more about boosting your hotel’s revenue with hotel revenue management? RevOptimum is known as the pioneer of remote hotel revenue management. In fact, we’ve spent 30 years empowering hoteliers and helping them meet their revenue goals.
Want to see how RevOptimum can help you increase hotel revenue? Contact one of our revenue experts today.
About the Author
Scott Frothingham is the Founder and CEO of RevOptimum, which focuses on Hotel Revenue Management and Revenue Growth distressed Hotel Businesses. Scott is a pioneer of hotel revenue management and has increased more than $2Billion USD in hotel revenue.