Improve Information Flow, Increase RevPAR

The highly competitive environment in the hotel industry has forced a lot of companies to differentiate themselves from the competition and compete on price.

While there is certainly nothing wrong with trying to differentiate your establishment from the competition, too much investment in this strategy can lead to lower profitability. Every year, surveys reveal that hotels need to reduce costs to increase competitiveness. A significant number of hotels have achieved this goal by improving efficiency, implementing best industry practices, and leveraging on technology.

Though the hotel industry has experienced tremendous growth, bottom-line performance has been eroding because of escalating “non-controllable” expenses including insurance, government regulations, and utilities. “Controllable” costs such as payroll and marketing are also expected to increase. A lot of hotel manager see technology as the solution.

Software solutions such as REVPAR GURU can offer product differentiation and improve business processes. Everything from inventory, seamless data transfer, real-time access, and transparency in multiple channels allow hotels to centralize personnel and control costs.

Increase Revenue and Reduce Cost

Every business organizations want to minimize costs while improving profitability, and hotels are no exception. Hotel operators do have an edge against other types of businesses because the technological solutions in this field are impressive. Below are four reasons to look into technology solutions when running a hotel:

Increase RevPAR penetration rate

Increase conversation rate at Reservations

Increase labor productivity

Increase guest satisfaction in one year or less

Before you can achieve these objectives, it is first important to know the challenges your establishment face and the potential solutions available in the market. Based on research studies, one of the main difficulties in operating a hotel is poor information flow. Many hotels are unable to verify whether the information they have is updated and complete.

1. Fragmental information hinders the hotel from using the same revenue management method to all reservations. This results to instability in prices and the inability to maximize revenues.

2. Inefficient information exchange between channels encourages managers to close rates/dates in order to prevent overbooking.

3. Lack of information leads to differing opinion on the right sales strategy

Real-Time System

Real-time strategic sales and revenue management solutions can provide the answer to these challenges. Hotel managers should look for applications that have a wide range of capabilities including revenue management, inventory management, and central reservations. These functions should be implemented quickly and show results in the company’s bottom line.

Revpar Guru offers these solutions to meet your hotel revenue management requirements.