Is Your Hotel Ready? Revenue Management Predictions for 2015
By Paul van Meerendonk Director of Advisory Services, IDeaS Revenue Solutions | January 04, 2015
Another year has come and gone, and hoteliers worldwide are already planning for the months and quarters ahead. Renovations, expansions and overall segment growth will continue to fuel the industry and will gain much attention throughout the year, but it will also be crucial to monitor the constant evolution of today's hotel management environment. Change is upon us, and the ways hoteliers operate more efficiently while driving better revenue is the newest frontier. Take revenue management for example: no longer dictated by gut instincts or stagnant spreadsheets, the practice of revenue management-and the technologies driving it-continues to incorporate new strategies for maximum profitability. Not only are hotel operations more tightly integrated with revenue management technology overall, but that technology is extending to other areas within hospitality as well, enabling hoteliers to take a more holistic revenue approach. But these are just some examples of what to look for in revenue management as we begin a new year. Let's explore a few more.
Powerful Analytics is Key
A pricing trend to watch this year will be the continued adoption of powerful analytics to drive overall strategy. Analytics can answer questions like "why is this happening?" or "what will happen next?" Even before the surge of big data, analytics performance of automated revenue management systems was a primary consideration for revenue managers when selecting a system for their properties. Now with the abundance of big data, an important differentiator for revenue managers to understand clearly is what types of data are integrated into their systems' decision making engine versus the types of data that are merely displayed or just used for reporting. When used as an integral part of the pricing algorithm, big data can be a powerful analytics capability.
Big Data Doesn't Have To Be a Big Headache In 2015
Advanced analytics are already a key business tool in a range of industries. For hoteliers looking to drive performance and increase profits, analytics are an invaluable tool for examining and creating trustworthy pricing decisions for one property or worldwide estates.
Data today comes in all types of formats and some can feel overwhelmed by the sheer volume of information coming at them daily: structured, numeric data in traditional databases, information created from line-of-business applications, unstructured text documents, email, video, audio, stock ticker data and financial transactions etc.