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Revenue Management

Hotel Revenue Management Systems Software Articles

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How Technology is Helping Independent Hotels Develop Competitive Revenue Strategies

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Hotel Tech Report
1 day ago

In recent years, many independent hotels have come to realize that technology gives them tools to compete with larger hotel brands in the digital marketplace, helping them to remain competitive and drive share of market.But how exactly can technology add value to a hotel like yours? Duetto, known for their pioneering revenue management software, recently spoke with independent hotels to better understand how they use technology to get ahead of the curve. In this article, we’ll share some of Duetto’s findings: real-life examples of hotels that make software an integral part of their revenue strategies. These examples may spark ideas and inspiration for you as you consider adopting technology at your own property.

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7 Next-Gen RMS Features That Save You Time

by
Hotel Tech Report
1 day ago

Do you know how much time you spend on tasks that should be automated? If your team uses a legacy revenue management system (RMS), you’re probably spending dozens of hours each month setting rates, managing inventory controls, and adjusting rate plan and room type differentials.Many RM teams are juggling more responsibilities than ever before, while also being held to higher expectations and being expected to do more with less.In this article, we’ll introduce you to 7 next-gen features that rely on automation to save you time – features you can find in a cutting-edge RMS like N2Pricing. A modern technology solution can unlock not only significant time savings for you and your team, but also increases in RevPAR and profitability.

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How to Optimize Hotel Forecasting with Technology

by
Hotel Tech Report
1 month ago

How long does your budgeting process take? And how often do you update forecasts within the month? For most revenue managers, forecasting and budgeting is a painful, manual process which is stuck in the last millennium.In an effort to unlock the power of data-driven forecasting without the manual overhead, HotelIQ has launched an AI-driven forecasting management system that incorporates historical PMS data into its predictions.Tons of variables could lead to a hotel needing to update forecasts like unexpected seasonality, competitor pricing updates, renovations that affect room rates and more. Hotel management is extremely complex and requires constant demand forecasting and a careful eye on key metrics to ensure optimization of key performance data and healthy operating margins.In this article, we’ll walk through the challenges with the standard hotel industry forecasting process and then show the improvements and efficiencies that HotelIQ can bring to your hotel. With a more streamlined and accessible forecasting process in place, you can achieve higher RevPAR and hit your revenue targets.

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Here's Why Every Hotel Should Be on a Cloud RMS in 2023

by
Hotel Tech Report
1 day ago

What do the world’s largest B2B software companies, like Oracle, Alphabet, and Salesforce, have in common? Besides one-word names, these companies share one crucial factor that makes them successful, scaleable, and future-proof: they’re all built in the cloud.If the top technology companies use cloud-based technology, why do many hotels still use legacy on-premise software from the 90s? Much of the conversation in the hotel world revolves around cloud-based property management systems, but all of your tech solutions, including your revenue management system, should be cloud-based today. In this article, we’ll outline the main advantages cloud-based software provides, highlight some renowned hotel groups who have switched to the cloud, and discuss how revenue management systems like Duetto are leveraging the cloud to add maximum value to hotels.

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3 Important Pricing Strategies for Hotels

by
Nathan Mayfield
3 months ago

Any business owner who understands the basic concepts of revenue management knows the importance of pricing their product appropriately. This means evaluating the market’s demand for the product and the business owner’s supply of the product. If the inventory vanishes quickly, this is an indicator that the product was priced too low. If the seller had charged more, then they would see greater revenue. Conversely, if the inventory is untouched by consumers, then it may be priced too high.The laws of supply and demand apply to hotel availability just like any other product. Here are three important aspects of revenue management that every hotelier should understand. They are 1. Variable Pricing, 2. Dynamic Pricing, and 3. Yield Management. By carefully applying these pricing principles, hoteliers are better equipped to form an effective pricing strategy for their property and maximize profitability.

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Comp Set: A Step-by-Step Guide to Determining the Right Competitors for Hotel Benchmarking

by
Hotel Tech Report
1 month ago

How is your hotel performing? Many hotels leverage tools like STR reports to answer that question, but a STR report is only effective if you have picked the right properties (direct competitors) to compare your hotel against.Without context, your ADR and RevPAR might as well be numbers you pull out of a hat. A competitive set, or compset, can add necessary context to help revenue managers, leadership teams, and owners understand a hotel’s performance relative to similar hotels in the market. But in order for compset data to provide this valuable benchmarking context, the compset must include hotels that are close competitors of your hotel. In this article, we’ll explain the power of selecting the right competitive set and walk you through the process of building and maintaining a solid compset. Then, you’ll be able to use your compset to unlock insights and opportunities to capture higher ADR and more occupancy in the market.

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Tech First Hotel Management Companies Rewrite the Operating Playbook Amidst Volatility

by
Jordan Hollander
3 months ago

Rancho Caymus Inn in Napa Valley, managed by Life House The last five years have put the hospitality industry through the ringer.  COVID shut down properties around the world, caused a labor shortage and the aftermath is steering us straight into the eye of a new storm - looming recession, inflation and potentially stagflation.Increasingly volatile market conditions have made hotel management exponentially more challenging.In order to succeed in today’s rapidly changing environment, hotel management companies need to have tools that empower them to act on real-time shifts in market conditions. Hotel operators who are ahead of the curve on all things digital can spot shifting market trends and implement new strategies to adapt in real-time.Volatility and technological change have left legacy hotel management firms scrambling to rework their operating models and update their technology tools.  This scramble has opened the door for a new type of hotel management company - tech first hotel managers.Tech first hotel management companies have taken a first principles approach from day one by leveraging proprietary technology tools to automate back office operations, eliminate cost redundancies and more effectively generate demand for their partners - hotel owners.

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What is Dynamic Pricing in Hotels and Why Does It Matter?

by
Hotel Tech Report
1 month ago

If your hotel is still using seasonal room rates, we can confidently tell you with (100% certainty) that you are leaving money on the table.  If you aren't updating room rates to reflect real-time market conditions you are without a doubt selling your rooms in a suboptimal way.  Either you're over-pricing and missing out on selling hotel rooms to drive occupancy or you're underpricing and leaving critical ADR (average daily rate) dollars on the table.  Either way, good luck beating your compset on RevPAR.So how do you maximize revenue in changing market conditions and with fluctuating demand? In short, you'll need to tap the power of automation by implementing a hotel revenue management system.  As a hotelier, you want to sell the right room types to the right guests, at the right prices, at the right times. But the “right price” can mean very different things to different guests, and the “right price” in the middle of your slow season is drastically different from the “right price” on a peak demand date. It’s clear that a one-rate-fits-all approach doesn’t quite work; a dynamic pricing strategy can increase your revenue and occupancy by adjusting rates up or down based on a variety of factors. In this article, we’ll explain how dynamic pricing works, the costs and benefits of adopting a dynamic pricing strategy, and some best practices for effective use of dynamic pricing.The hospitality industry is notoriously complex when it comes to pricing and distribution.  This has become even more pronounced with massive market fluctuations in the wake of the pandemic.  In order to effectively leverage the automation techniques required for effective hotel dynamic pricing you'll need to incorporate competitor pricing and market data so granular that it's simply impossible for a human to catch up without computational assistance.

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What is Overbooking in Hotels?

by
Hotel Tech Report
1 month ago

Waking up on a Monday morning and thinking it’s still the weekend is disappointing, but have you ever headed into a sold-out Friday night at your hotel only to end up with 83% occupancy because of no-shows and cancellations? As a hotel general manager or revenue manager, nothing dulls the shine of a holiday weekend like last-minute wash. You’ve worked so hard to layer in reservations to hit that perfect full house, but at the last second you find yourself scrambling to capture more bookings. How can you avoid this situation?The answer lies in your overbooking strategy. Although it might sound counterintuitive, overbooking can be the key that helps you unlock higher RevPAR – while minimizing negative guest experiences and reviews. In this article, we’ll explain what exactly overbooking is, how you can launch your own strategy, and what benefits and risks come with overbooking. By the end of this article, you’ll be ready to start overselling on your peak demand days.

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How Customer Insights Helped Duetto Reimagine Hotel Forecasting and Rate Management

by
Hotel Tech Report
1 month ago

While technology obsessed consumers have grown accustomed to clamoring around big splashy launches like the latest iPhone or social media app, innovation in the hotel technology space is more nuanced, often requiring a refined eye to understand them. This complexity leads to a unique challenge for hospitality tech buyers and users: how do you spot innovation in hospitality? Cutting-edge hotel tech rarely makes the headlines, and you won’t see star-studded launch events in this ecosystem. Instead, innovation in hospitality is won in the long game.In this article, we’ll study real-world examples that show how Duetto, a leading revenue management system, ideates and prioritizes product changes, then develops and rolls out new features via the Cloud to help their customers gain readiness for rapidly changing market conditions.