Optimizing Hotel Revenue and Distribution Performance
It has been 30 years that I have been involved with hospitality; 20 years that I have been involved in Revenue Management; and it has been 5 years that I develop technology for Hotels. Throughout these long periods, I have met some amazing people in the industry, stayed in great hotels and been part of many Meetings. Out of all these interactions with hotels, revenue meetings, sales meetings, strategy meetings, budget meetings your name it one thing has become very clear.
Optimizing Revenue and Profit in a hotel is quite a complex process. And I am not talking about your 50 room hotel across the town square that would be happy with "just a price optimization" software. I am talking about the 200-300-500-700 room powerhouses with a complex segmentation and channel mix. The ones that produce say >10mil revenue per year.
These hotels have more considerations such as what is the ideal business mix, what market segments and rate codes produce at the right moments? Which channel delivers incremental demand and where and at what right cost? What is the market opportunity? Where is the potential to do better? How should I shift my business taking net ADR in consideration? How healthy is my business and channel mix on my peak days? Am I optimizing for profit?
To add another layer of complexity one can ask how to reconcile bedroom occupancy with meeting room occupancy? Does the additional meeting and events Revenue justify potentially a lower RGI? What is the extra spend? Am I optimizing every square meter of the asset?
Then comes the whole discussion about Sales and Marketing budgets. Where do you allocate your sales and marketing budget to drive the highest next Revenue? How do you measure campaign ROI? And more importantly when do you plan these campaigns as a function of booking intent and lead time?
There are many more dimensions to take in consideration and pricing is obviously one of it. I have seen many hotels having sophisticated price optimization systems in place however being totally underperforming. More intelligence is also needed here. Apart from the tactical day to day rate setting, whether powered by sophisticated machine learning or rules one needs to consider the strategic positioning of the hotel. For instance, how do you position your hotel pricing according to value, how do you decrypt the competitors pricing movements?
We can go on and on and probably fill a lot of pages of text… Instead of doing that we will be releasing JUYO ANALYTICS V3 during the summer.
It will be our attempt to answer many of these questions. Will we answer them all by then? Maybe not. But V3 will set the stage to answer these and many more in the weeks, months and years to come.
and drop us a mail to hear more: email@example.com