Hotel Revenue Management Experts Share Industry Strategies
March 11, 2022
Article by Ayna Gonzales
Last February 24, 2022, hoteliers and industry leaders gathered for ZEN Hospitality Talks: Strategies on Hotel Revenue Management. The event speakers were hotel revenue experts from ZEN Rooms, Jorge Mañas, Revenue Management Director and Paul Amistoso, Head of Strategy & Revenue.
Attending hoteliers were able to glean valuable knowledge on how hoteliers can leverage their resources to increase RevPAR, ADR, and maximize hotel occupancy.
If you couldn’t join the online event, here’s a quick summary of the key takeaways from the talk.
1. Adjust room rate to your hotel lead time to maximize revenue and occupancy
Your hotel lead time is the time between a guest making a reservation and their actual check-in. With the pandemic disrupting normal guest booking patterns, hoteliers have been adjusting their pricing strategy to accommodate changing lead times.
As a general rule: when lead times are short, make room rates higher to maximize revenue. When lead times are longer, price rooms closer to market rates to remain competitive and maximize occupancy per room in between check-ins.
2. Optimizing your hotel booking channels can increase room reservations
Tracking and monitoring where hotel bookings and reservations are coming from can help hoteliers maximize the most profitable platforms. If Online Travel Agency (OTA) listings generate more revenue, consider allocating more rooms and marketing resources in that area. If direct website bookings are more popular, direct more traffic towards your hotel booking page instead.
Using a booking channel manager like the one in ZEN eManager makes reservations management easier and more efficient.
3. Keep track of your hotel’s Average Daily Rate (ADR) and Revenue Per Available Room (RevPAR) to know if you’re maximize each room’s revenue potential
A hotel’s ADR and RevPAR are key metrics in revenue management. These help determine whether hotel rooms are optimized to serve as many guests as possible at rates that increase overall revenue. Having data on ADR and RevPAR can guide hoteliers in making sure each room is selling for its daily maximum rate.
Hotel revenue management systems can automate this process by computing for the best rates for every room at any given day. ZEN Revenue Management Software’s Dynamic Pricing feature makes daily adjustments to room rates to capture the most attractive prices for every guest.
4. Guest conversion relies on three main points in the customer hotel booking journey
The key to success hotel guest conversion banks on a hotelier’s understanding of how a guest makes booking choices. A hotelier must be able to communicate the hotel’s unique value, know what kind of guest is booking, and the thought process behind it.
Communicate your hotel’s unique value to become a go-to choice
Your hotel’s unique value differentiates it from the competition. While it doesn’t have to appeal to everyone, it does have to be an attractive option to your target market. Advertise to potential guests how they can benefit from staying at your hotel. Your goal should be to become a top-of-mind hotel to your audience.
Know who your hotel guests are so you can offer them the best experience
The way you sell your hotel will depend on who your potential guests are. These could be leisure travelers, business travelers, couples, families, or friend groups. Marketing your hotel to accommodate their needs will vary and should be tailored to each segment. The more customized your message is, the more effective it will be in converting guests.
Understanding the thought process behind hotel bookings leads to conversion insights
From awareness to consideration to conversion, every guest’s hotel booking process should be taken into consideration when marketing room availability. Think about what you need to communicate to get customers through to a booking channel. Should you highlight events, promos, or rooms? Should you focus on social media marketing, newsletters, or video ads? Match your marketing efforts with the customer journey for higher conversion rates.
5. Digital transformation in hotels is inevitable
While many hotels in the West have adopted hospitality technology, those in the Asian regions are still in the process of integrating innovative technology into their operations. The steady progress of innovations makes digital transformation inevitable for hotels who want to increase their revenue and stay competitive in the market.
Slowly integrating hotel management systems and digitizing operations makes hotels more efficient and helps in forecasting hotel revenue demands and trends to stay ahead in the industry.
Hotel revenue management is a continuous process of data collection, innovation, and adaptation to a changing market. By understanding the key strategies in increasing revenue, hoteliers can easily tailor their approach to maximizing resources and improving their bottom-line.
Want to learn more about hotel revenue management? Check out ZEN Hospitality Solutions. We offer digital solutions to hotel concerns and free resources to learn more about managing a successful hospitality business. Talk to an expert today on how you can work with ZEN.
Article by Ayna Gonzales