While everything in the hotel industry seem kind of grim these days, an analyst at Goldman Sachs thinks otherwise. Steven Kent said that investors should be buying hotels shares already because it presents a huge opportunity in terms of future earnings. As expected though, market sentiment to his perspective was lukewarm. He further added that the “economy is not too hot” that’s why expense control remain present. On the other hand, it also is “not too cold” that’s why travel purposes are loosening up.
So what does this announcement mean for hotel revenue managers? Well, as supply contracts, it will group to a halt over the short term. In the next few years, room rates can drastically increase because of shortage and asset values will start to go up. Another factor Kent points out is the revenue per available room. Though everyone certainly wants to increase RevPAR, it is also a good indication that this key measure didn’t turn negative until the second part of 2008 even as other industries suffered.
Hotel Revenue Management Techniques for Today
While waiting for the market to get better, there are many yield management strategies that can be implemented to increase hotel profitability. This is because while the future holds a lot of potential, today’s market conditions are still undeniably challenging. Maximizing RevPAR entails getting a pricing software, inventory software, and hotel revenue management software that can predict market behavior accurately. That way, the hotel revenue management can know when to increase their prices and when to give discounts to customers.
RevPAR Guru offers the kind of technology necessary to survive and even thrive in the best or worst economic conditions. With its seamless integration of various features, it can accurately keep tract of hotel inventory and predict how much should be charged during particular seasons to boost hotel profitability.
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