Data integration is a crucial step in any revenue management process. Unfortunately, bringing data from disparate sources and combining them in a unified way to produce meaningful insights is not an easy process. As a hotel revenue manager, it’s a challenge to connect your different systems so that they communicate and allow for seamless data transfer.
RMS technology has had to advance to keep up with changes in demand patterns, which are more unpredictable and dependent on external factors. While successful revenue management begins with a clear understanding of guests and market demand shifts, Cindy Heo, Assistant Professor in revenue management at Ecole hôteliere de Lausanne, says that revenue managers can’t just crunch RMS numbers without a thorough understanding of “guests’ selection behavior, consumer psychology and their competitors’ strategies.”
"RMS should be integrated first with the property management system (PMS) to consider the entire booking information, analytics, and reporting functions, as well as with other internal systems such as the central reservation system (CRS), point of sale (POS), the customer relationship management (CRM) system, channel management tools, the hotel’s own website, and various social media channels." –Cindy Heo, Revenue management: Using data integration
An emerging way to understand guest preferences and behaviors is through user-generated content, available on social media, hospitality review platforms, or any other method where guests voice their opinions. Through an analysis of this content, RMs can better understand their competitive advantage from their guest’s perspective, and update their rate fence structure.
Turning all the available data into useful insights is the key challenge facing revenue managers. After all, information only has power if it is accessible and analyzed properly. Revenue managers must start with the right questions to find the best answers. Then, they can perform careful data interpretation that results in actionable recommendations for the property's departments.
Finally, not all guests are created equal. Some guests spend their money on F&B, leisure facilities, and spa treatments, while others only make use of their room. Identifying guests with a higher value is extremely important in today’s market. To maximize long-term profits, hotels need to increase guests’ spending by satisfying their expectations and encouraging repeat visits.
Access to more data does not automatically lead to better revenue management decisions. If your data is used correctly, it will lead to more opportunities. Having the right RMS tools in place is key to positioning you for maximum success.
Source: Revenue management: Using data integration by Cindy Heo