26Sep

Revenue management today - Are you still stuck in the past?

Author: Rainmaker

Ask any hotel revenue manager of a certain age what it was like for them to do their jobs before the advent of next-generation revenue management systems. Few, if any, will wax nostalgic about “the good old days.” Certainly, none will say they miss spending their time and energy continuously collecting and integrating
endless pieces of information dispersed across multiple data silos. Or creating macros to run calculations on Excel spreadsheets. Or constantly logging into the extranets of distribution platforms to enter updated rate information. Or obsessively pouring over mountains of data in search of discrepancies and input
errors with the analytical equivalent of a fine-toothed comb. Or manually reviewing forecasting models and demand reports in the hope of identifying opportunities for improvement in pricing and inventory control decisions.

analysis-spreadsheet - data

Technology innovation has rendered the mundane, tedious, and cumbersome tasks associated with revenue management practices of yesteryear virtually obsolete, to nobody’s chagrin. By taking the most repetitive — and often most complex — tasks off their plates, new technology solutions have liberated revenue managers from the daily grind of manual data collection, entry, analysis, and updating. The best of today’s solutions fundamentally redefine what it even means to be a revenue manager. The job is no longer about crunching numbers and updating prices. Instead, it’s about creating high-value, big-picture strategies that serve to optimize financial performance across all parts of the organization

Enabled by machine learning, the science of pricing optimization is now capable of running largely on autopilot. The best of today’s solutions adapt in real time to dynamic markets characterized by ever-changing numbers, patterns, and results to optimize pricing decisions in much the same way a jetliner uses autopilot to find the best flight path while minimizing turbulence by automatically changing speed, direction, and altitude and by oscillating the wings. The best of today’s solutions automatically calculate demand forecasts for future use of every guest room, recommending selling strategies and overbooking levels to maximize yield with an unprecedented degree of accuracy, and with little need for human judgment. 

 

Looking for more information on the updates and benefits of a science backed revenue management system?  Download our new guide with StarFleet Media, the 2019 Smart Decision Guide to Hospitality Revenue Management. Click below to get your copy!

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