Modern all-inclusive resorts are transitioning from revenue management (RM) strategies based solely around optimizing package rates, to more comprehensive approaches that take ancillary revenue sources into account. And all-inclusive hotel owners increasingly recognize that harnessing the power of a robust RM technology solution is what they need to maximize revenue and achieve business success on both short- and long-term bases.
Why RM for All-inclusives is a Marathon
Relying on manual RM techniques is inefficient and often leads to flawed results and flawed decisions. A great example comes from past unsuccessful tracking of regrets and denials which fell prey to the inaccuracies of human error. Technology-based analytics removes this issue, allowing regret and denial data to be effectively used in developing long-term pricing strategies.
Today’s all-inclusive guests are growing accustomed to paying for ancillaries and upsells outside of their original package purchase. Good RM technology segments customers at a granular level, revealing who is most likely to pay more for deluxe accommodations, or book extras such as access to exclusive areas and off-property cultural excursions. Further, as maximizing ancillary revenue becomes more valuable for the all-inclusive model, technology makes it easy to apply RM principles to all revenue streams, such as food and beverage, spa, and retail. By gaining a holistic view of total guest value, hoteliers can easily identify their most profitable guests and determine ideal segment mix positioning to optimize profits.
In the past, the all-inclusive industry relied on historical data to determine future demand, but technology now provides a much clearer view. By leveraging the powerful forecasting capabilities of RM software, all-inclusives can now incorporate data from internal, external, and real-time sources. Managers can make better-informed decisions across multiple guest segments concerning future demand, performance, and critical hotel operations.
Pricing decisions have long-term consequences on your bottom line. Regardless of your destination’s popularity, every all-inclusive resort is subject to seasonal ebbs and flows. The predictive analytics of a top RM solution lets managers examine the performance of multiple pricing scenarios – making necessary adjustments to drive bookings during slow seasons and capitalize on high demand during busy seasons.
Why RM for All-inclusives is a Sprint
As booking windows grow smaller and smaller, and competition increases, all-inclusives are seeing greater fluctuations in demand and rates, and hotel data changes rapidly. RM software gives you a competitive edge, providing access to real-time information and enabling you to make instant adjustments that positively impact profits.
With a science-based RM and business intelligence solution in place, you gain the ability to look beyond traditional KPIs of occupancy and revenue per available room (RevPAR). In addition, state-of-the-art RM technology allows you to analyze all costs, as well as guest spending habits, preferences, and shopping behavior. Tracking the metrics specific to your business model lets you drill down to your true level of operational profitability.
Implementing a good RM solution improves guest satisfaction and daily productivity as well. A positive guest experience is impacted by maintaining appropriate staffing levels. The right software helps you boost productivity and better manage resources, ensuring you maintain appropriate staff levels at all times.
According to the 2018 Lodging Technology Study, 61 percent of hotels plan to increase tech spending this year. And one out of three hotels are prioritizing implementation of a RM technology system. All-inclusive hotel operators are beginning to recognize that technology is the true differentiator – as important for their success as it is for the traditional hotel model. By implementing an effective RM solution, an all-inclusive can stay ahead of their competition, adapting quickly to market changes in real time, and developing accurate pricing strategies and forecasting models that maximize revenue over the long term.