Hotel Revenue Management – Airlines lose revenue if the seats are not filled. Railways lose money when the train seats are left empty. In the same way, hotels are at loss when the rooms are left unsold for a day.
Over the years, the hospitality industry has been booming, and rightly, they are taking the advantage of innovative hotel revenue management strategies to achieve success in the continuously changing hotel industry.
Understandably, therefore, hotel revenue management has become one of the principal management strategies among the hotel industry to procure better results and profits – hence understanding future revenue management is imperative.
Therefore Incode business services – one of the most renowned hotel management companies in India, has this article to help you grasp the future of hotel revenue management in India – and how hoteliers can make the most of this management strategy for the development of their business.
Understanding hotel revenue management
The hospitality industry, especially the traveling sector is considered as one of the most efficiently managed e-commerce industries – thanks to the advanced technologies, securing their business and bookings across various platforms.
Though the progress of revenue management in the hotel industry has been slow, initially, but now with the rise of smartphone users and the advent of various social media distribution channels – more and more businesses are resorting to hotel revenue management – with some resorting to dedicated revenue management teams.
So how can the hotel business benefit from hotel revenue management in India?
- OTAs – you can’t live without them
Effective revenue management implies a combination of in-depth market research, competition evaluation, and understanding customer relationship management, that categorizes customers into price bands based on various services. If hotels want to maximize profits, through market demand, they must focus on maximizing rates and availability through forecasting and understanding the market inclination and demand.
If these strategies are undertaken correctly, hotels can easily and effortlessly expand their market size and increase the flow of revenue in business.
- Taking advantage of dynamic pricing
Hotels can benefit majorly by adopting innovative revenue management systems that base room rates depending on real-time changes in the marketplace. The strategy of managing prices by demand drives more bookings and customers; adopting dynamic pricing policies can help hotels gain more competitive advantages in the industry.
Effective distribution is crucial to meet the high fixed cost of the business. Also, the sale and occupancy of each hotel room every night at an optimum price is also crucial for the long-term profitability of the property. To achieve this target, hotels must take advantage of different distribution channels to sell their services.
Nowadays there are a plethora of booking channels that call for different approaches. And with various go-betweens’ middle, like online travel agencies, internet consolidation companies, and even hotels’ own websites – the process has become even more complicated. These channels also add the advantage of gaining market insights, distribution data, customer behaviors, which ultimately helps businesses maintain the highest rates and occupancy.
But with the increase in booking channels, it is influencing the decision on how hoteliers manage their properties. More and more hotel businesses are in search of integrated revenue and property management tools that can work seamlessly together with central reservation and distribution.
- Choosing the best fit technology
Hotels operate 24*7, and it demands management all through the working cycle. Hotels should deploy automated hotel management revenue tools that will help keep a track of the continuously fluctuating data of the business. This will help eliminate the manual day-to-day time-crunching tasks.
Need Hotel Revenue Management?
If you are in search of reliable Hotel Revenue Management services in India, Incode Business Services is the ideal fit. Consult with our experts’ revenue managers in the industry and learn the tactics and tricks of managing revenue effectively.
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