How Can Revenue Management Systems Help Increase Profit?
In this digital age, revenue management is the cornerstone of running a successful and profitable business.
Fremont, CA: The increase in the availability of data and various methods to track and analyze has become complicated for several industries. Still, it also provides a wide array of opportunities for businesses to increase profit. Where innovation is happening at lightning speed, it isn't very easy to believe that about 15 percent of lodging properties globally utilize revenue management (RM) technology even though the hotel revenue management practices has been there for more than 30 years.
Internet, online travel agents, travel aggregators, and the resulting price transparency have made it difficult for revenue managers to function efficiently. The addition and popularity of short-term vacation rentals and alternative accommodation has become a new complexity that forces the revenue managers to re-evaluate their pricing and forecasting decisions.
Here are some of the revenue management opportunities for the future.
Rise in RM Capabilities: The revenue managers are all ready to have a truly integrated, cloud-based RM technology, or an insight solution which possesses the capability to integrate data from the company systems, endorsing data, and allocating actionable recommendations. Only a few properties are leveraging RM technology. RM technologies and RM technology solutions are different from each other; as a result, there is high adoption of data-driven pricing and forecasting decisions.
The Collaboration with AI: Machine learning capabilities of aggregating and analyzing data, for making a transparent and conscious recommendation in the meanwhile allowing users to understand the outcomes of their actions is the actual breakthrough of RM technology. To simplify, revenue managers prefer to receive recommendations in a simple storytelling format. Although we live in an Artificial Intelligence-driven world, RM technology is in a race to harness data and develop on its strengths, but eventually, it will help humans to act on that data. A future where machines and people unlock revenue growth opportunities lies ahead.
Covering Data Rift: With online purchasing being popular, travel intermediaries are increasingly called upon to deliver more information like the demand for a particular destination, traveller purchase insights, which is not easily available. The hotel revenue management tends to highly focus on the demand for rooms and event space at the property-level. With the transforming distribution landscape, travel intermediaries can unleash valuable insights like price-response attributes, real-time competitive set data, and conversion rates.