Revenue Management is obviously here to stay. Perhaps not so much that the benefits of data and information analysis in this complex, fluctuating and constantly evolving market of tourism also require flexibility, adaptability and transversality. Revenue experts (both those who have joined organizations directly and those who advise them externally) are increasingly demanding advanced tools and solutions tailored to their needs: nothing less than to make the best decision when it comes to the management of hotel revenue.
Essentially, it is a matter of ordering the Big Data of the establishment and analyzing the information to define a strategy that makes profitable and optimizes these revenues, defining the best pricing policy for the company’s balance sheet. It seems simple, doesn’t it?. The reality is that nothing is as simple as it seems, especially if the aim is to sell the right product to the right customer at the right time at the right price. It will be the Revenue Manager who will make the best decision based on the paradoxically broad but precise information that can be accessed at any given time.
Technology as a support and much more
Surely, when the airlines decided in the 1950s to follow in American Airlines’ successful footsteps by implementing a reservation management system to optimize the revenue generated by available seats – by adapting their fares – no one imagined that they were lighting up a concept with such potential.
It reached the hotel industry in the 1990s, and a few decades later new technologies are reshaping its possibilities almost to the minute.
It is now possible to simultaneously access the historical record of internal factors, such as previous occupancy rates, market niche or customer segmentation and satisfaction index (among others) as well as external factors: from the weather conditions of past seasons with their corresponding holiday periods and holidays, to events that may affect business results, or the prices applied by competitors.
And all this without losing sight of the contributions of the novelties of the automated systems available in the technology market, and the mobile approach that in 2018 continues to grow exponentially hand in hand with one of its essential derivatives: a high-performance responsive website. Technology, more than ever, is the means by which revenue managers can focus on the current trend: using gross operating profit per available room (GOPPAR) as the main KPI to put profitability at the heart of their strategy.
Information is power… or simply advantage
Where can we put an end to any reflection on a Revenue Management that is booming and expanding?. In our case simply after indicating what we can offer our customers today, to help generate useful information for decision making.
From Dingus’ perspective and our experience as a specialist provider of online distribution systems, we necessarily have to focus on BookinCenter and its ability to improve hotel distribution, as well as RoomOnLine, the comprehensive solution for hotel website design, direct sales development and online hotel marketing services… But let’s take it one step further. Let’s talk about an immediate future backed by the 2.5 B€ of revenue managed with our technology: we are preparing for the next June 1st.
From that day onwards, and in line with the security framework implied by our ISO 27001, Dingus will apply PCI regulations to transactions, thereby ending direct and/or automatic charges outside of the Payment Card Industry Data Security Standard environments.
All this translates into a determined commitment to help the hotel expand its vision of sales, from rates to collection, incorporating cash flow to Revenue. As indicated at the beginning, RM is transversal and our brand is also evolving to have much to say and more to contribute.
