Revenue Management Software
Software to analyze, automate and optimize pricing strategy to increase profitability.
Software to analyze, automate and optimize pricing strategy to increase profitability.
Keep a pulse on competitors and use real time market insights to increase occupancy and optimize pricing.
Get a unified view of your reservations & supercharge your team's workflow.
Say goodbye to spreadsheets and leverage modern BI tools to visualize your data and uncover hidden insights.
Optimize visibility and inventory across channels in real time.
Cloud-based Hotel Business Intelligence Analytics-as-a-Service. For Hoteliers, by Hoteliers.
IDeaS creates sophisticated yet simple ways to empower revenue leaders with precise, automated decisions they can trust.
Comprehensive distribution and seamless connectivity in one powerful reservations platform
More new channels. More new guests.
Web-based central reservation system that connects to multiple distribution channels and offers distribution modules for web, mobile, voice, travel agent and online travel agent (OTA) channels.
Optimize your hotel’s pricing strategy
In our Product Deep Dive series, we go deep into one solution to help hoteliers evaluate and assess the best software for their specific situations. Vetting vendors is an intensive process. It starts with the discovery phase, where online research and consultations with colleagues inform the initial list of promising companies. Next, that list is whittled down after deeper dives into individual products, watching demos, and likely speaking with individual vendors. Finally, the selection happens -- and the truth eventually reveals itself. After implementation, and a few months of using the service, you’ll revisit and evaluate. Was it the right decision? For the following hotels, the answer was a decisive ‘yes’ after choosing a new central reservation system. When discussing the search process with Travel Weekly, Brian Christensen, the corporate VP of revenue management and distribution for American Casino & Entertainment Properties, noted that his team “spent a lot of time on discovery” and “looked at some of the best.” The vendor evaluation process is a deliberative marathon that results in a decision with wide-reaching organizational implications. With that in mind, it's instructive to consider why hotels select one vendor over another. These insights may accelerate your own decision process when selecting a new central reservation system for your hotel. Here's why these hotel groups selected Travel Tripper’s RezTrip CRS. Meriton Group: Optimized for direct bookings on both mobile and desktop Over the past two years, hotels have become acutely aware of rising commission payouts to intermediaries. To increase direct bookings -- and reduce reliance on third-parties -- many hotels have focused their online efforts on simplicity and clarity. When potential guests can make a decision as quickly as possible, it enhances the search experience and leads to stronger performance in the direct channel for hotels. When comparing CRS providers, Meriton Serviced Apartments sought an integrated system that would power a shift from high-commission OTA channels to direct bookings on both desktop and mobile. After implementing RezTrip CRS, and its smart rate and revenue management tools, Meriton enjoyed a significant spike in direct business, says Matthew Thomas, Group General Manager of Meriton Serviced Apartments. “Our direct bookings instantly increased once we launched RezTrip across our portfolio of hotels. The newly enhanced mobile version has enabled us to capture the growing global shift towards mobile-device made bookings.” To successfully capture more mobile bookings, hotels must address consumer reluctance to purchase on mobile devices. The comScore Mobile Hierarchy report explored the “m-commerce gap,” or the disconnect between time and money spent on mobile. For hotels that want to drive more mobile bookings, this disconnect highlights some key hurdles to overcome, such as improving navigation and providing more detailed product information. After evaluating all options, the Meriton team felt that the Travel Tripper technology excelled. It made the mobile experience just as easy to use as on desktop, and effectively translated hotel’s engaging imagery to the smaller screen. Functionality: More direct bookings through an integrated booking engine optimized for conversion on both mobile and desktop Business impact: Since launching with Travel Tripper in summer 2016, Meriton has experienced significant uplift in conversion rates across its properties, particularly in its mobile channel, where it is using RezTrip’s recently redesigned mobile booking engine. Mayfair Hotel: Conversion-optimized booking flow By 2020, Euromonitor predicts that 44% of sales will be made online in the travel industry -- more than any other industry. With such a massive share of commerce occurring through digital channels, hotels must implement conversion-optimized reservation systems to compete. When the Mayfair, a boutique hotel in Miami, began evaluating new central reservation systems, the mandate was clear: Replace the existing clunky booking technology, with its poor usability, small images, and hard-to-read descriptions. Rich content engages guests, and so the hotel’s new solution had to be modern, usable, and emphasize the unique appeal of the property’s elegant, understated style. In addition to featuring bolder, more prominent images, rooms should be easy to browse, select, and book. Mayfair wanted a streamlined booking flow that didn't take too long to complete. RezTrip’s two-step process fulfilled this objective, resulting in more lookers converting to bookers on Mayfair’s website. Functionality: Simplified browsing with rich content, and a booking flow streamlined into two steps to optimize conversion across devices; Business impact: Mayfair saw an 84% increase in year-over-year website revenue, alongside a 76% increase in direct bookings and a 60% increase in conversion rates. Stratosphere: OTA-like rate controls Despite intensive marketing efforts by hotels, direct bookings remain flat. To succeed in earning more direct bookings, hotels must mirror some of these platform’s most favorable features. Consumers turn to OTAs because of usability and utility. This is especially true on mobile, which is perceived as easier to use with instant updates, discounts and streamlined search and booking. Another growing threat to direct bookings is metasearch, which also offers finely-tuned mobile experiences, such as Google’s new combined flight/hotel user experience. To compete for bookings, hotels need more granular rate controls that level the playing field with both OTAs and meta. As a casino and resort located in Las Vegas, the Stratosphere has many rooms spread across multiple room types, and, given its size, has high volume and multiple sources of revenue. The resort’s local market is also extremely competitive and prone to demand fluctuations, which requires more precise revenue optimization to adapt to changing dynamics. To improve the precision of its revenue management in the direct channel, the Stratosphere team prioritized the ability to personalize rates and offers with best-rate guarantees, strikethrough bookings, room countdowns and geo-targeted rates with Dynamic Pricing Rules. This functionality allows the hotel to do things like include breakfast in rates displayed to European travelers. With more control over individual rates and personalized offers, the hotel was able to enhance its revenue management capabilities. Functionality: Granular rate controls, such as Dynamic Pricing Rules with geo-targeting, as well as urgency messaging such as Stricter pricing and “rooms remaining” countdowns. Business impact: The stratosphere Hotel doubled the conversion rate within four months of integrating RezTrip CRS. Learn more about Reztrip CRS and Booking Engine screenshots RezTrip is an integrated solution that drives targeted results TravelTripper’s RezTrip is a trifecta: a robust central reservation system, an integrated booking engine, and a comprehensive distribution solution. It combines these three important tools into one coordinated e-commerce platform which gives hotels greater control over how rates are merchandised and distributed. The CRS connects directly to your hotel’s property management system, keeping reservation details, availability, and rates up-to-date without manual intervention. The outcomes are impressive. Meriton Serviced Apartments achieved an increase in direct bookings by switching to Reztrip's mobile-optimized booking engine. Reztrip also optimizes revenue across other key channels, as the single reservation system that connects to OTAs, GDS, metasearch, and even call centers. Mayfair leveraged RezTrip’s intuitive and elegant interface booking flow to increase website revenue 84% year-over-year. The integrated booking engine’s customizability allowed the hotel to build a powerful solution that met their exacting specifications. The Stratosphere more than doubled the conversion rate on its website, relying on geo-targeted Dynamic Pricing Rules and integrated rate matching to convert more lookers to bookers. Other features that improve conversions include automated email retargeting, strikethrough pricing, and “rooms remaining” countdowns. Inspired to experience RezTrip? Click here to learn more.
To get a grasp on the current hotel distribution landscape and how much intelligence and work is needed to optimize each channel, it’s worth taking a moment to review its early history. Distribution mix was once a simple concept: walk-ins, phone calls, and the occasional (physical) mail were, fundamentally, the sole sources of hotel bookings. But things started changing when electronic reservation systems made their first appearance in the '60s and, eventually, became mainstream in the ’80s. By the end of the 20th century, hotel distribution shifted (literally almost overnight) online, and started to resemble what it is today. Over the last two decades, consolidation and new players entering the market have been crucial to an extraordinary growth in digital hotel distribution. Flash-forward to today, the current landscape is touted as merely a duopoly held by Booking and Expedia, and that is a quite accurate statement, at least to a certain extent and for the moment being. Even though it seems like distribution is ever-moving, in fact, there are clear patterns and trends. According to Phocuswright, for example, 2016 was “the first year when OTA lodging bookings in the U.S. exceeded total hotel website gross bookings”, and forecasts expect OTAs to reach over 40% market share by next year. This means that despite above-the-line marketing, targeted discounts and revamped loyalty programmes, consumers are not shifting to direct as their primary booking option as intensely as the big chains wanted. With this in mind, perhaps hotels should start reconsidering their relationships with online travel agencies and focus on the channels bringing the highest profit and volume. In an age where OTAs and wholesalers flex their rates across metasearch engines or marketplaces it is very unlikely that users will just “stop clicking around”. You just need to accept it and move on. There are, however, alternative distribution channels that could be leveraged with success or, at least, kept under one's radar. So let's dig into these distribution Goliaths. Booking.com Born from the merging of booking.nl, bookings.org and Active Hotels (a.k.a. ctivebooking.com), over the years Booking.com became the biggest e-commerce website for travel, with around 200 offices worldwide and over 17,000 employees. Two years after Expedia turned the opportunity to buy booking.nl down in 2003 (ouch!), the Dutch startup was eventually acquired by Booking Holdings (at the time still operating under the Priceline Group moniker), which rebranded to Booking.com in 2006. The first version of the booking.nl website went live in '97, with an inventory of ten hotels and a commission rate of 1/4 of what it is today. According to its founder, Geert-Jan Bruinsma, he had the original idea during a dinner with friends, "got inspired" from the Hilton official website source code the and launched it with barely 50,000 €. During the years, Booking Holdings continued to grow thanks to an almost-mistakeless acquisition strategy: from Asian-based OTA Agoda to rental car service TravelJigsaw (a.k.a. Rentalcars.com), from travel metasearch engines Kayak, Momondo, CheapFlights, Mundi and HotelsCombined to restaurant-reservation service company OpenTable, not to mention yield management solution PriceMatch (now integrated in BookingSuite), RocketMiles, ASDigital, Buuteeq, Hotel Ninjas and the heavy investments made over the years in Chinese OTA Ctrip. Expedia Founded in 1996 as a division of Microsoft, Expedia was acquired by IAC/InterActiveCorp in 2003, which eventually spun it off in 2005. In 2012, Expedia took a majority stake in trivago (which the American OTA still owns after the metasearch went public). Under the IAC/InterActiveCorp brand first, and the Expedia's brand then, dozens of companies (eventually acquired or merged) operated and continue to operate: TripAdvisor (spun off in 2011), Hotels.com, HomeAway (merging VRBO, bedandbreakfast.com, vacationrentals.com, Abritel and FeWo), Egencia, Travelocity, Orbitz, HotWire, Wotif, lastminute.com.au, Ebookers, CheapTickets, AirAsiaGo, Venere.com (eventually merged into the mother brand), Classic Custom Vacations and many others. Today's market value of the company is almost $20 Billion, with over 22,000 employees around the World. Agoda Founded in 2005 by Michael Kenny and Robert Rosenstein, merging planetholiday.com and precisionreservations.com, Agoda can be viewed as a precursor in the industry. PlanetHoliday, in fact, was founded in 1997, just one year after Booking.nl and Expedia. Agoda focus is mainly on the Asia-Pacific region and it has a portfolio of over 1,000,000 vacation rentals and hotels worldwide. In 2007, the Bangkok/Singapore-based company has been acquired (for an undisclosed amount), by Booking Holdings, even though it continues operating independently. HRS With almost half a century of history, HRS Group is the (grand)father of all OTAs. Founded in 1972 by hotel clerk Robert Ragge, in 1995 it became the first website to provide an online hotel database. In his book, Outliers, Gladwell popularized what became known as the 10,000-hour rule, by documenting the lives of successful people. “Ten thousand hours is the magic number of greatness”, he wrote, inspired by the work of Daniel Levitin, the neurologist who scientifically proved that “10,000 hours of practice are required to achieve the level of mastery associated with being a world-class expert in anything”. The theory is fascinating, though, not always reliable, and HRS is the perfect example of this fallacy: even with almost half a century (or 400,000 hours) of experience under its belt, today it has a significantly less prominent market share than it used to have, while OTAs born decades later have outgrown it. In 2008 Ragge's son, Tobias, succeeded his father and acquired Tiscover, hotel.de, HolidayInsider and bought stakes in meetago and Lido Group. HRS currently lists 850,000 properties, operating mainly in German-speaking Countries. Wholesalers and Bedbanks Wholesalers and bed banks both made an extraordinary (yet unexpected) comeback over the last few years, mainly fueled by nebulous B2B2C rate strategies and smart acquisitions. With its database of over 70,000 beds and around 5,000 employees, the World’s largest bedbank is, of course, HotelBeds. Founded in 2001, HotelBeds became independent in 2016 (it was, up until that moment, owned by TUI), thanks to the backup of private equity funds Cinven and CPPIB. HotelBeds recently played the divide et impera card, by acquiring two of its main competitors: Tourico and GTA. AirBnB, Google and Amazon So, while even the small hotel entrepreneur is familiar with the aforementioned players, there are at least three companies trying to undermine this status quo. Airbnb, for example, recently officially stated that it offers more listings than Booking.com, while Google entered aggressively into the travel space, thanks to the European introduction of its facilitated booking system Book-on-Google and with its redesigned destination hotels page (https://www.google.com/travel/hotels/). Amazon, after trying (and failing) to get into the industry back in 2016, is rumored to be slowly (but steadily) trying to gain a more prominent slot in the market. Conclusions Far from being fully exploited or stagnated, the hotel distribution space still has a lot of potential, both in growth and diversification. With, on one side, main OTAs turning into metasearch engines-slash-marketplaces-slash-B2B providers hybrids and, on the other, search engines and retailers playing the OTA’s game, our industry has never been so interesting.
Arise Travel is an early stage startup that most hoteliers haven’t heard of today but the firm’s technology could be the answer to the seemingly never ending direct booking wars if things go according to plan. The firm was founded in December of 2017 by two early (former) employees at cloud property management system provider Frontdesk Anywhere who got loads of experience dealing with intermediaries while building the business. Every industry has intermediaries and those intermediaries deserve to get paid for driving business to their partners. Before we jump into how Arise can help build healthier (and more equitable) relationships between OTAs and their hotel partners let’s take a quick 10,000 foot view of where the relationship sits today. Why haven't the OTAs been broken up yet? The problem with the OTA-hotel dynamic is mostly a result of consolidation that has surprisingly not been addressed effectively by most antitrust authorities. The reason that antitrust authorities haven’t addressed this issue is likely because the duopoly actually benefits consumers (by delivering lower prices for accommodations) and many of the world’s most powerful antitrust authorities have mandates to protect consumers rather than businesses. Here’s a quote directly from the U.S. Department of Justice Antitrust Division website about the group’s mandate: “Competition in a free market benefits American consumers through lower prices, better quality and greater choice. Competition provides businesses the opportunity to compete on price and quality, in an open market and on a level playing field, unhampered by anti competitive restraints.” As such, it is unclear that the Booking/Expedia duoply (which is estimated to control ~80% of the market today) will ever be broken up given the focus on consumer protection. Arise shifts the focus from direct bookings to lower commissions Historically, most of the companies that help hotels gain leverage against OTAs today have been focused on driving new direct bookings. The general idea is that by helping hotels increase their mix of direct bookings - these hotels will pay lower absolute commissions in the short term and also in theory should be able to negotiate lower commissions over the long haul. The earliest companies to play in this space were Triptease, Stay Wanderful and Hotelchamp. These direct booking platforms help hotels optimize their website performance to increase conversion and effectively maximize their funnel rather than bring new prospective guests into it. More recently, The Hotels Network and 123Compare.me have jumped into the fray. Similarly, digital marketing agencies began positioning around direct bookings with firms such as Screen Pilot, Travel Tripper and TravelClick leading the pack. Ultimately the goal of any great hotel digital marketing agency should be to drive bookings at a lower cost relative to OTA commissions. In addition to the benefits of website optimization based direct booking platforms, digital marketing agencies help bring new prospective guests into that funnel through digital marketing on paid channels such as Google, Facebook, Email Marketing and Instagram. So tech companies have gone a long way to help hotels gain leverage with the OTAs by driving direct bookings via digital marketing, website optimization, etc. While this is a great approach, Arise Travel has a surprising way to end the direct booking wars - and the team wants to do this without a single shot fired. With an OTA duopoly, is there a big enough market for Arise? While Expedia and Booking have approximately 80% of the OTA market, there are many other stakeholders in the accommodation supply chain. The total retail value of accommodations globally hovers around $570B and $200B of that gets passed to the hotel industry (Statista). Booking and Expedia revenue for all business units combined (incl. airline, activities, etc.) are ~$25B which shows that even though they have huge OTA market share, they actually have modest shares of the overall intermediary markets. So who else is in this intermediary market? Some examples include: traditional travel agencies, corporate travel businesses, smaller OTAs and OTA affiliate partners. Arise wants to help hotels fight the OTAs by mixing in more cost effective 3rd party bookings. When a hotel today forecasts a period with high demand, they’ll often use their channel manager to shut down distribution in what are called “closeout dates.” Closeout dates include peak times like big conferences coming to town, city wide events, etc. That sounds reasonable, right? Wrong. When hotels activate these closeout dates they are intentionally leaving bookings on the table today to save themselves for lower commission bookings tomorrow. Then, as occupancy begins to rise, hotels are able to increase rate which is why they’re ok to leave those bookings on the table. In super simple terms, let’s say a hotel will pay 20% to the OTA and 0% incremental for direct bookings (because many direct costs are fixed). The reason they shut down OTA inventory is because they believe that the rate increase they can command tomorrow will not justify the distribution cost today. Arise Travel founder Nadim El Manawy believes that billions are being left on the table and thinks that commissions should be dynamic just like room rates. Everyone knows that revenue management software is essential to running a profitable hotel business. If you charge too much - you lose bookings. If you charge too little - you leave profit on the table. Revenue management systems help hoteliers make sure that they can walk that fine line to maximize profitability and Arise Travel can have the same effect on 3rd party commissions. Here’s how Arise Travel’s technology works to supercharge your existing channel manager Arise automatically downloads closeout dates from your channel manager where your hotel is leaving bookings on the table. Your revenue manager can then go into the Arise Travel dashboard and input commission rates that they’d be willing to sell hotel rooms for during those periods. Rates and desired commissions then get pushed to Arise Travel’s network of intermediaries so hotels can sell rooms to prospective guests on 3rd party channels without commission negotiations or even the need for a traditional contract. Let’s say, for example, that The World Cup is coming to your city next summer so you don’t want to allow Expedia bookings at 20% commission knowing that you’ll fill your hotel regardless. You can’t renegotiate with Expedia but you can now login to your Arise Travel dashboard and notify intermediaries like small OTAs and corporate travel agencies that you’d be willing to sell rooms for a 7% commission during those times. You can even set variable commissions on a per room type basis, by rate code, day of the week and even by channel. Eventually the technology will make this all automated through integrations with top rated revenue management systems. Those intermediaries can then accept those terms and list your rooms for booking on their channels with automated rules. The big value prop for these intermediaries is that they can now sell accommodations that aren’t available on Booking and Expedia - this helps them differentiate and ultimately grow their businesses. You can now get rooms booked for a reasonable commission while driving up rates during this peak period. Consumers win by accessing your inventory in more places, distributors win by getting access to unique inventory and you win by maintaining reasonable commissions and selling your inventory more quickly. Arise’s technology handles all commission reconciliation and payouts automatically to save your team time. The entire payment and service history can be viewed at any time providing ultimate transparency into your channel management strategy. If Arise Travel can get big enough, it will eventually pressure Expedia and Booking to accept variable commissions that are market based. While Expedia and Booking may see short term headwinds from a concept like Arise Travel hitting scale, this is ultimately bringing much needed fair market dynamics and transparency to the industry which will lead to healthier hotel-OTA relationships and more innovation. Nadim has a massive vision for the industry and he needs the help of our global hotelier community to jump on board with what we at Hotel Tech Report believe is a “no brainer.” We recently sat down with Nadim to chat about his background, the future of hotel distribution, what’s next for Arise Travel and more. Hotel Tech Report's exclusive interview with Nadim below What was your background prior to starting the company? Before co-founding Arise, I led sales and partnerships for 4+ years at a cloud-based property management system company in San Francisco called Frontdesk Anywhere. Prior to moving to the Bay Area in 2011, I worked in Shanghai and grew up in Belgium. What made you decide to jump in and disrupt the travel distribution space? I met Alex Lamb, my co-founder in this business, at Frontdesk Anywhere where we were the second and third employees. Alex lead the engineering team there for 4+ years. Being in the PMS business, we became very familiar with how things work on the operational side at hotels, but we also had to work with many players in the distribution chain such as channel managers, GDS and wholesalers. We got to see how things are patched together behind the scenes today. Many of the hotels we worked with were very vocal about how a few online travel agencies were controlling their distribution and how much they were paying in commissions and fees. We also saw how the fragmentation of the PMS space and old technology used by existing intermediate networks was making it difficult for travel companies to gain access to hotel data and efficiently transact with hotels. We starting thinking about how we could use emerging technology to fix many of these problems, allowing new travel companies to grow faster and help move the industry forward. Who was your first customer? One large player in the corporate travel space (we can’t name the company yet) is taking a chance working with us in order to solve some of the problems and inefficiencies they face today. Our experience with hotel distribution technology gained over the years when building and maintaining a cloud PMS combined with our knowledge of distributed ledger technology and how it can be applied to travel distribution is what made them want to work with us. What is there so much excitement about Arise Travel as a disruptor? We build technology that helps hotels gain more control over the inventory they share with their partners. Our distributed ledger technology lets hotels enforce rate parity at the point-of-sale and dynamically adjust their commission rates based on demand, significantly increasing hotel profitability. Who is one mentor that has really helped you scale the business? I need to mention two people who have been very helpful since the beginning. Jing Zhou, who was at Hyatt for many years leading e-distribution for Asia Pacific, has been sharing her knowledge on hotel operations and distribution strategies. She has helped us stay focused when building our technology to make sure it fits with hotels needs. Varsha Rao, who was head of Global Operations at AirBnB for many years, has tons of experience in building and scaling businesses. Her constant ideas and advice on ways to start and grow the business have been extremely helpful. What's one big misconception that hoteliers have about distribution? Many hoteliers believe that they are powerless to change the distribution technology they’re dependant upon. Most hoteliers are quick to complain but because they don’t view distribution technology as a core competency, the idea of investing resources into something they’ve never taken ownership of before seems daunting. This mindset may have been reasonable in the past, but not anymore. Distributed ledger technology will show hotels that updating their distribution technology is possible with very little IT investment and without affecting their operations and current distribution channels. What's the most surprising thing you've learned about hospitality distribution since founding the business? That most innovative technology being worked on focuses on the travel search and booking process, but technology that can improve the traveler experience after booking is held back because many of these services have to rely on outdated distribution technology to function. If you could partner with any vendor in hotel tech, who would it be and why? AirBnB. Our technology creates a shared source of truth for hotels and OTAs, making it possible to automate commission reconciliation processes. With this automation in place, it becomes feasible for hotels to start setting variable commission rates for the inventory they send to OTAs. Instead of closing entire channels during high demand periods, hotels can lower their commission rate to maximize their profitability. We can help AirBnB grow its hotel business by accepting variable commission rates from hotels, giving them access to desirable inventory that is currently unavailable to other OTAs using a fixed commission model. Where do you see Arise in 5-years? Most of the intermediaries that survive of rate arbitrage and don’t bring real value to hotel distribution will disappear. We believe the efficiency and trust that distributed ledger technology can bring to the industry will drive down the commissions paid by hotels for bookings. I’d hope most hotels, including independent, will be benefiting from the control and efficiency our technology will bring to their online distribution. I’d expect many players involved on the supply and on the demand side to be using our technology. Do you have any new products or feature launches? Variable commissions hotels fully control and payouts are automatically handled. Starting with high demand periods, hotels can decide how much they are willing to pay in commissions for any given date, room type and rate. Today hotels pay fixed high commissions to OTAs and at times of high demand often take the risk to close those expensive channels as they are confident enough they’ll drive enough direct bookings to fill their hotel. Hotels no longer have to do that as they can now set variable commissions that they are willing to give OTAs on those high demand dates. We provide the transparency and control to hoteliers and we automate the commission payouts so it doesn’t add any more work for hoteliers. We work with hotel channel managers and switches. To get going hotels can contact us or also check with their service provider to see if they are already connected to Arise. Is there anything that the community can do to be helpful for you? We’d love for people involved in hotel distribution on either the supply or demand side to talk to us. The more people that understand and get comfortable with the idea that upgrading distribution infrastructure isn’t such a daunting task, the faster everyone will be able to benefit from it. Advances in Distributed Ledger Technology actually make distribution less complex than the processes in place today. What's one piece of advice that you have for any entrepreneurs looking to get into the hotel tech space? Make sure there’s a clear need for your solution in the space and if so, have a very good understanding of all the current players, how they work together and all the moving pieces that shape today’s hotel tech space.
In our Product Deep Dive series, we go deep into one solution to help hoteliers evaluate and assess the best software for their specific situations. Among the growing number of revenue management tools, IDeaS has established itself as one of the world’s top revenue management systems. Its flagship IDeaS G3 RMS processes 100 million revenue-enhancing decisions each day across 1.6 million rooms, translating rich data inputs into a dynamic revenue engine for peak profit performance. Here are 6 of the features of the IDeaS G3 system that we most certainly can’t live without. #1: Demand-based pricing by room type One of the latest IDeaS G3 RMS features allows revenue managers to yield by room type. For example, let’s say the system detects a spike in demand for the “deluxe double” room type. It will automatically increase the price for that room type -- without also boosting prices on other room types. Yielding by room type unlocks a purer yield management approach, with rates priced according to guest demand and price sensitivity for specific room types, rather than simple attributes or inflexible rules. This reduces the burden of manually yielding across multiple room types, says Angelo Fernandes, SVP for Terranea Resort: “This technology has enabled us to look at inventory by type or segment and actually make decisions to yield room types uniquely across different channels. Terranea is very unique, with 582 keys and a mix of rooms, suites, villas, casitas, and bungalows. IDeaS helped us understand pricing, availability, and demand for each room in order to optimize profitability.” The demand-based pricing approach gives revenue managers a more accurate, holistic view of a hotel’s demand profile. Automation ensures that each room type is priced appropriately for the demand, which yields the most profitable business mix. Sometimes dynamic room-type pricing can be unintuitive, says Fernandes, where smaller rooms are actually priced higher than larger, more premium ones. But it’s all based on actual demand rather than instinct or historical performance. “Effectively, each room type has its own BAR, so we’re now selling more rooms at the correct rate, and we’re also avoiding overbooking a certain room type and then having to move guests to a bigger room.” The IDeaS RMS “at a glance” dashboard #2: Virtual Revenue Management Service (VRMS) Most hoteliers feel under-resourced. Yet, smaller properties are naturally at a disadvantage when it comes to resources -- especially independents that find themselves in direct competition with “soft” brands that don’t directly rely on their parent company’s identity. These brands appeal to a different cohort than the majors, while still taking advantage of the parent’s revenue management expertise. That’s not to say that brand-affiliated hotels don’t also feel the squeeze when it comes to finding resources to devote to revenue strategy. IDeaS set out to solve this issue for any hotel, with its Virtual Revenue Management Service. VRMS helps hotels accelerate their revenue strategy by assigning an industry revenue expert to work directly with hotel staff—no matter the business objective, resource mix or skill level. The three phases of VRMS align hotel management and staff around the techniques and habits of a revenue-focused culture. With the end goal of establishing clear standard operating procedures around revenue optimization, VRMS ensure that hotels of all kinds benefit from the revenue management revolution. #3: Ideal Pricing delivers continuous pricing Automation is at the core of the IDeaS approach to revenue management. Through artificial intelligence and machine learning, it makes precise revenue management decisions that most revenue managers would never be able to see. Ideal Pricing uses deep market intelligence, such as search penetration, competitor rates, booking trends, and reputation scores, to intelligently forecast demand and power a continuous pricing model. The automated system prices room types at the ideal rate for a given product and set of guestroom attributes. The ideal pricing model intelligently prices by day or length of stay, while also allowing hotels to price within a range or set specific price levels for certain attributes. Revenue managers can link products to BAR or independently price as agile rates to dynamically flex products based on unique demand and attributes. The best part of this is that it all happens in real-time and in the background, so revenue managers can focus on tactics and strategy rather than manual data entry. The AI-powered analytics recognize relationships between all rates and segments, continuously making the smartest pricing decisions based on the latest information. With Ideal Pricing, hoteliers achieve peak profitability decoupled from a traditional rates-based framework. #4: Support before, during, and after implementation It’s a common refrain here at HTR: customer support is always a core consideration when evaluating new partners for your hotel. Poor support can scuttle even the most advanced product; without knowledgeable resources available before, during, and after the implementation, a tool risks failing due to low adoption and minimal integration into existing processes. IDeaS sees itself as an ally in implementation, and, as a result, provides robust implementation support that supports a hotel’s efforts to nurture a sustainable revenue culture. The clear plan is to train staff at the outset, as well as through continuous learning so that everyone has the tactical knowledge necessary to get the most of your chosen software. This includes how to read reports and what actions to take action based on those reports. #5: Rate publishing tool Most hotels realize that all distribution channels are not created equal. For peak profit performance, the highest value booking at the lowest acquisition cost. Individual channel performance, plus overall channel mix, equals the optimal revenue strategy. To achieve the optimal mix, hotels need a rate publishing tool that consistently and accurately updates rates across all chosen channels. This Functionality is integrated into the workflow, making it simple and easy to publish rates across channels. No more logging into multiple extranets and manually entering the same information multiple places. It’s all about working smarter and more strategically. Hotels also realize that there’s a trust issue when it comes to rates appearing equal across channels. Rate parity breeds confidence, and an integrated rate publishing tool empowers hotels to build that confidence through seamless rate management. The Demand360 view highlights the competitive market data alongside your hotel’s forecast and decisions. #6: Limited Data Build functionality Launching a new hotel is both an exciting and challenging time. It's a fresh slate to serve a new segment or expand in an existing market. The freshness also poses a problem for revenue management: Without any historical data, how should a hotel be properly priced in its early days? Pricing affects positioning; getting the pricing wrong can alter demand and consumer perception. The Limited Data Build feature addresses this existential issue for new hotels. To forecast demand in the early days, IDeaS will clone data from existing hotels with similar business mixes to provide baselines for demand and predicted guest behavior. One new brand in Germany, Me and all, found that the baseline data helped beat its ADR expectations by 15% in the first half year. “Up until now, one of the biggest problems has been forecasting how a new business will unfold. Normally, we rely heavily on a hotel’s historical market data besides examining the public price points of other hotels to get a feel for the market. On this occasion, however, there was a bigger knowledge gap to fill. -Monika Sand, Corporate Manager Revenue at Lindner Hotels AG Bonus! Lucky #7: Smart Space The complexity of managing revenue grows exponentially when adding groups and meetings to the mix. For larger hotel groups, there may be an additional layer of communication between a centralized revenue management team and property-level sales managers. SmartSpace is a dynamic cloud-based strategy application that provides a revenue-focused visual analysis of meetings-and-events trends and performance. Thanks to more intelligent analysis, hotels can finally optimize revenue on key demand days by using detailed demand profiles to price more strategically. The SmartSpace Functionality guides hotels on forecasted demand, performance trends, market competitiveness, and pricing strategy. Through data and visualizations, it provides a guide to pricing decisions, as well as prioritization of RFP responses. Demand-level data can also reveal patterns across many meeting room types, to reveal which rooms are most popular and which were underutilized. These patterns inform the optimal configuration of those event spaces to ensure that supply meets demand. For instance, rarely-used rooms could be combined or repurposed to better suit the needs of today’s event and meeting organizers. “Smart Space makes it a lot easier for us to study our booked and lost business and better prioritize sales team efforts,” said Christine. “To be able to pull vast sums of relevant data and see that presented in an intuitive and consumable format is such an advantage. It’s the first step of some very exciting progress we’re seeing in meetings and events.” -Christine Wassell, director of revenue optimization for Radisson Hotel Group
Have you ever wondered which hotel software upgrades sit at the top of the priority list for other hotel tech buyers? After all, benchmarking is an important piece of a hotelier’s professional life. The knowledge of how other hotels (especially those in your competitive set) prioritize software upgrades is an additional data point for hotel managers. While new software should improve a hotel’s operation, it also helps hotels meet consumer expectations shaped by their experiences at other hotels. To remain competitive, hotels must consider which technologies power a guest experience that appeals to target demographics. To get a line on hotelier priorities for upgrading technology, we surveyed 789 hotel tech buyers with a single question: Which software categories are you prioritizing for investment and upgrades in the near-term? At the high level, revenue-related hotel software came out as a clear leader accounting for 30% of demand amongst the top 12 categories. There has been an explosion of sophisticated business intelligence software providers on the market and nascent entries from categories like rate shopping which are low cost and highly effective tools that just didn't exist 5-10 years ago. One likely reason for this is the sustained coverage in both mainstream and trade press of concepts like machine learning and artificial intelligence to inform yield management. In short, hoteliers are starting to understand the importance of an analytical toolkit and are taking it upon themselves to think of data as an asset rather than a buzzword. Thanks to comprehensive coverage of these technologies, hotels are dialed in with data-driven revenue management strategies. Operations came in second just behind revenue for near-term investment with 19%. While not surprising, given the complexity of running a hotel, it highlights the continued appetite among hotels for operations-enhancing technology. Every hotel needs a property management system and increasingly hoteliers are fleeing closed legacy server based systems in favor of innovative and flexible cloud solutions. This is evidenced by the fact that cloud based property systems contributed the lions share of demand for operations software amongst respondents. Ultimately what's most important is the specific products that your fellow hoteliers researching right now so now that we've reviewed the higher level placements, here's how hoteliers ranked their most pressing subcategories of hotel software. With each, we’ve added some color as to why this particular technology is hot in today's market. While our list only includes the top 12 categories of hotel software, notable mentions go to: concierge software (3.85%), guest messaging platforms (3.71%), staff task management software (3.71%), merchandising and upsell software (3.42%) and reputation management software (3.00%). #1: Property management systems One of the most critical pieces of hotels daily operations is the property management system. The PMS is the workhorse that keeps the hotel operating smoothly and profitably. As such, it's often one of the most deliberated decisions. 14.9% of respondents said that the PMS was the top software under evaluation for investment. Rightly so: Gartner predicts that 85% of relationships will be managed without human interaction. Extrapolate that to hotels and it's clear that the importance of a capable PMS only grows with time. If guests expect a hotel that fulfills their requests seamlessly without humans, then the core operations system for a hotel must unite all parts of a hotel to reliably deliver on this expectation. “We look at technology as something that enhances the humanity, not replaces it. We’re removing hardware from hotels, which is reducing cost and also reducing complexity for our colleagues in hotels so they can interact with the guests. On top of that platform, next we can bring guest experience.” -Elie Maalouf, CEO of the Americas, InterContinental Hotels Why it’s hot: The shift to cloud-based PMS, which increases flexibility and speed, has many hotels considering an upgrade from on-premises systems. There are many vendors competing in this crowded space, which gives hotels plenty of options and peace-of-mind that the software is secure and reliable. Price is also appealing: competition among vendors and lower-cost cloud computing brings best-in-class software to all hotel categories. Learn more: Our 2019 Hoteliers Guide to Property Management is your comprehensive resource for all things property management. We also recommend browsing through the property management category to learn more about top-rated vendors in the space. #2: Booking engines Offering guests a simple way to book direct is a fundamental part of pulling more bookings into a hotel’s Ecosystem. The stubborn reality has been one of underinvestment in the direct booking experience. How can hotels expect guests to book direct with an outdated website that's hard to use or poorly designed for mobile? These type of experiences have made consumers less likely to book direct and stand in stark contrast to the smooth user experience enjoyed by travelers on most third-party channels. 9% of respondents are interested in implementing new booking engines into their hotel tech stack. Why it's hot: Direct booking continues to be a hot topic. Whether it's conferences dedicated to driving more direct bookings, casual chats between colleagues at industry events, or Hilton CEO saying that 75% of bookings come from direct channels, direct booking is a key piece to the revenue puzzle. To succeed at direct booking, hotels must have functional websites geared towards conversion. Also: as hotel marketers see rising search and social media marketing campaigns, More marketers are thinking about conversion. Poor conversion increases costs; once a potential guest clicks an ad, it’s up to the hotel's website to convert. Learn more: Download our comprehensive Guide to Booking Engines to evaluate the ideal booking engine for your hotel. #3: Revenue management systems Coming in a close third, revenue management systems allow hoteliers to focus on profitability at the individual guest and room level. RMS analyzes data, such as a hotel’s booking pace and market trends, and then forecasts demand and recommends a rate for each segment and room type, for each channel. Revenue management systems are an investment priority for 8.8% of respondents. It's not surprising that two out of the three top technologies were related to revenue. As hotels implement more technology to streamline operations, boost productivity, and increase guest satisfaction, revenue earns greater focus. Hotels also have access to more data than ever before, so leveraging this data into revenue-positive insights has gone mainstream across all categories. “We continue to invest in tools to automate as much of that process in the back of the house as much as humanly possible, therefore allowing a much higher level of productivity.” -Mike Deitemeyer, CEO Interstate Hotels & Resorts Why it's hot: As we saw in the top-level view, revenue-related technologies continue to be important pieces of the hotel tech stack. Advances in both data capture and data analysis (also driven by plummeting cloud-computing costs), means that hotels have a stronger upside to leveraging revenue management systems. And, just like with other hotel tech categories, the proliferation of vendors has both increased awareness of revenue management among hoteliers and made these solutions more financially feasible. Learn more: Our Ultimate Guide to Revenue Management Software goes deep into the complex world of technology-driven revenue optimization. #4: Channel managers The unbundling of hotel software has allowed hoteliers to customize their tech stacks to select vendors for specific functionality. With this approach, a hotel can choose smaller startups that move more rapidly than some of the traditional bundled vendors. Hotels can also save money by paying only for the required functionality. Standalone channel managers have emerged to help hoteliers manage distribution from a single tool, regardless of which other software is in use. Channel managers are under consideration by 7.4% of respondents. Why it's hot: Channel proliferation continues unabated. For hotels, this leads to an inherent conflict: How to get inventory on the shelves on whichever channel potential guests prefer? There are simply not enough hours in the day to update inventory across many channels via each channel’s dashboard. It's also nearly impossible to stay current with the best channels for your hotel. A channel manager wrangles this complexity and streamlines inventory management across channels. Even for the smallest of properties, a channel manager makes a big impact -- and thus it’s something hoteliers are considering for their operations. Learn more: As you research channel managers for your hotel, refer to our Ultimate Guide to Channel Managers. #5: Central Reservations Systems (CRS) The CRS weaves revenue management, pricing, and distribution strategy into a single tool for managing a hotel’s revenue. The hotel CRS is the revenue engine that sits alongside the PMS at the core of a hotel’s operation. This is the system that centrally manages guest reservations, as well as distributes rates, availability, and room inventory In real-time to direct and third-party channels. Hotel revenue managers and marketing/e-commerce managers use the CRS to create various promotions and offers through rate plans for different channels and to adjust pricing quickly to be updated across all channels. As hotels become more adept at matching inventory and pricing on a channel-to-channel basis, the CRS takes on outsized importance as the center of a hotel’s revenue management strategy. 6.1% of respondents said that investing in a CRS is a near-term priority. Why it's hot: Hotels want tighter integrations between a hotel’s PMS and CRS, which follows the cross-category trend of cloud-native solutions enabling flexibility and speed. The ultimate outcome is to completely eliminate any data latency or synchronization issues that cause discrepancies in rates reservations and availabilities. And, with more systems from major players allowing guests to select a specific room while booking, there's a desire to remain competitive by implementing central reservation solutions that actually improve the guest experience before, during, and after the stay. Learn more: For a deep dive into all things CRS, download our Complete Guide to Selecting the Best Central Reservations Software for your hotel. Rounding out the rest Rounding out the top 10 is mobile key/keyless entry (6%), direct booking tools (5.1%), guest room tablets (4.6%), business intelligence (4.4%), and housekeeping management software (4.3%). Some notable surprises: Only 4% of respondents prioritize voice-activated technology. Voice tech is one of those technologies that gets a lot of coverage but has yet to prove itself as an essential component of the guest room experience. Keyless entry nearly tied Central Reservation Systems. It appears that, at least with this cohort, progress made at brands like Marriott (21% of rooms installed) and Hilton (75% of rooms) has not triggered a rush to replicate. Or perhaps it's that the majority of hotels that prioritized keyless entry have already completed the investment. Interested in upgrading your hotel software? Here are some helpful resources 1. Property Management Systems - See Top Rated Property Management Systems | Download the Official Property Management System Buyers Guide 2. Booking Engines - See Top Rated Booking Engines | Download the Official Booking Engine Buyers Guide 3. Revenue Management Systems - See Top Rated Revenue Management Systems | Download the Official Revenue Management Software Buyers Guide 4. Channel Managers - See Top Rated Channel Managers | Download the Official Channel Management Software Buyers Guide 5. Central Reservations Systems - See Top Rated Central Reservations Systems | Download the Official Central Reservations System Buyers Guide 6. Mobile Key & Keyless Entry - See Top Rated Keyless Entry Technologies | Download the Official Mobile Key Buyers Guide 7. Direct Booking Tools - See Top Rated Direct Booking Tools | Download the Official Direct Booking Platform Buyers Guide 8. Guest Room Tablets - See Top Rated Guest Room Tablet Vendors | Download the Official Guest Room Tablet Buyers Guide 9. Business Intelligence - See Top Rated Business Intelligence Software | Download the Official Business Intelligence Software Buyers Guide 10. Housekeeping Management Software - See Top Rated Housekeeping Software Vendors | Download the Official Housekeeping Software Buyers Guide 11. Voice Activated Tech - See Top Rated Voice Technologies | Download the Official Voice Activated Tech Buyers Guide 12. Rate Shoppers and Market Intelligence - See Top Rated Rate Shop Tools | Download the Official Market Intelligence Software Buyers Guide
Market Intelligence Software Buyer's Guide