Like any other industry, the hotel one is persistently and continuously evolving and ever-changing. New trends emerge ergo new formulas and strategies of success are established at an exceptional speed, which shows not even the slightest rate of a slowdown. As 2019 begins to unfold, the top hotel revenue management trends of the year begin to take shape. Set to provide robust revenue growth and an increase in direct room bookings, the benefits these trends provide are designed to put any hotel on the forefront.
One way that translates directly to increased profitability broadly known by any revenue manager, is to shift guests’ actions from online travel agencies (OTAs) to the hotel’s own direct booking platform. OTAs naturally play a considerable role today as a reservations source, yet when it comes to simple plain numbers, those from direct bookings are second to none. How to facilitate this shift to happen? Make your message simple and clear, a prime spot on your hotel’s website and overall marketing strategy. The perks of such action, and not just price wise, also highlighting the value of the product. If achieved, you will have established a base to turn them into loyal customers whose value is pivotal for any hotel.
The rise in mobile interactions and bookings continuous to steam ahead. 2018 kept a high and remarkable pace of growth; 2019 will see an even greater significance on the focus on mobile. More and more the increase in revenue will be linked with a high-end mobile website, hence it is of paramount importance for revenue managers to ensure that their hotel’s website is fully optimized for customer interaction, business generation and performance calculation. Always up-to-date and with a cutting-blade’s performance.
A focus on profit has become prominent for revenue managers, so noteworthy that revenue management is starting to be called just profit management. There is a move from ‘traditional’ key performance indicators (KPIs) such as revenue per available room (RevPAR) and revenue per available room (RevPAR), to new ones such as gross operating profit per available room (GOPPAR) the prime KPI. Profit is put at the centre of revenue management strategy, letting managers steadily and gradually researching, testing and innovating new approaches to raise the profitability of their hotels.
The power and leverage of rich data and information has become an essential part in any formula for success. Today, hotels are fluctuated with an increasing number of data, which combined with different KPIs drive business forward. Yet this amount of data can become overwhelming, the perfect solution for such issue would the usage of systems which can manage them. A system which is cloud-based and allows the user to generate reports and analysis, to provide influential insights, is Reception. The graphs and statistics provided by the app will empower any hotel’s revenue to perform at an higher pace.
Lastly and of its own importance, is to be up-to-date with what is going on in the industry. To take a quick daily look at the latest news and trends about hospitality; new opportunities to take in consideration and put in implementation. Have a birds-eye view and use it to your advantage. There is an abundance of places where you can get informed, you can check here at our blog Inside Softmogul time-to-time, or any other great blog.
Trends and booking patterns have a constant tendency to evolve and ever change in this day and age. So swiftly that having a sturdy and vigorous revenue management strategy is of special importance. To make sure your next step is a right one.