How Do Travelers Use Search Engines These Days?

The internet plays a big role in the travel industry today. Everything from flight schedules to updated hotel rates can be seen online and travelers are taking advantage of the easy access of information. Both leisure and business travelers can benefit from using the internet. On the other side of the equation, hospitality revenue management companies can also benefit from this development.

Making their information easily accessible, conducting search engine optimization tasks, and trying out other web promotion strategies can increase RevPAR and increase hotel sales many times over. It is no secret that travelers these days use search engines especially the major ones including Google, Yahoo, and MSN to find travel deals and gain information about vacation alternatives. 34% mainly rely on search engines while another 23% prefer to look into the web pages of specific countries or location to get more details. Then, this is followed by online travel portals such as Travelocity and Expedia which accounts for 22%.

Before these desired results can be achieved though, determining consumer behavior and the changing trends in the market is important. For example, as searchers become more familiar with online technologies, their search patterns are becoming different as well. It is also important to take note that the number of travel portals including planning and booking sites have grown dramatically through the years. Hotel revenue managers need to factor in these changes in order to compete effectively in the marketplace.

In addition, utilizing a hotel software such as RevPAR Guru can enable hotels to give appropriate pricing through demand forecasting. This pricing software also helps hotel revenue managers keep up-to-date about what’s happening around them. Through the software’s functionality such as GDS distribution, inventory management, pricing software, and other applications, the hotel revenue management teams will be equipped with the right tools to meet the challenges today.

Hotel Industry Expectations for the Second Half of 2009

According to the PKF Hospitality Research, RevPAR which is an important indicator of the hotel industry’s health, will bottom out in the third quarter of 2009. After months of decline, it is expected that the industry will finally rebound. This news is bound to give hotel revenue managers around the world a sense of relief. The escalating trend of declining hotel revenue began in the third quarter of 2008 so it really does come full cycle if this trend reverses itself in a one-year timeframe.

The President of PKF Hospitality Research Mark Woodworth said that while their finding is welcome news, 2009 will still post the “weakest year on record for the domestic lodging industry”. In addition, revenue per available room for 2010 will still be disappointing even if it is not as bad as this year. Taking into consideration the employment level and the demand for lodging, it becomes clear that RevPAR can decline by 17.5% overall for 2009. In 2010, decline in RevPAR will not be as bad but it is still at 3.5%.

These factors point to the conclusion that effective yield management should still be practiced by the revenue management team. Also, the hotel revenue management strategies such as increasing online presence, using hotel software, and training the service staff should be continued and further strengthened to give hotels a competitive edge.

Mr. Woodworth further added that “If you are wondering when we’ll start to see actual growth in RevPAR, then you’ll have to wait until 2011” though the “operating environment is going to get a little less painful”. The decline for lodgings in the United States peaked during the first quarter of 2009 at 8 percent. According to the Hotel Horizons, demand will continue to regress but at a diminishing rate.

For the remainder of 2009, the projected quarterly decline is 4.7 percent on the average. Overall, hotel revenue will decrease by 16 percent this year because of the decline in RevPAR. Beyond the year 2009, there will be an average annual increase of 3.2 percent in the next four years according to the same study.

How to Implement Yield Management Strategy at the Front Desk

In today’s highly modern environment, it might be tempting to focus on new hotel distribution channels such as popular travel portals and agency partnerships but there is an important segment that hotel revenue managers need to focus on as well: walk-in clients. Though this market may not be as big as the number of consumers you will receive from the internet and elsewhere, it presents great opportunities for the hotel. Walk-in consumers are usually those who had experienced the hotel’s service in the past, were referred by their friends, or simply received the hotel’s value proposition.

The front desk staff, in this instance, will assume that the walk-in client is a booking client but this is sometimes not the case. This is because they might be put off for some reason whether it is the high rates being charged to them or the “curb appeal” of the hotel does not suit their preferences. Whatever the case, there are techniques that will help improve hotel sales and boost profitability from this market:

Connect with Clients – it cannot be stressed enough that establishments in the hospitality industry, particularly hotels, should focus on service. The front desk staff and everyone in the front line should be trained to meet the needs of the clients whether during the peak or off-peak season to optimize hotel profit. Employees need to establish eye content, smile, and greet guests before they are greeted.

Offer Alternatives – depending on the availability of hotel rooms, which can use established using the inventory software, hotel revenue managers can offer two or more choices to the guest. For example, instead of quoting the highest rates, options should be given upon the guest’s inquiry. Some alternatives can include room vs. suite, view vs. non-view, and standard vs. deluxe among others. Doing this helps changes the question on the client’s mind from “should I book here?” to “what room should I get?”

Describe the Hotel’s Offering Properly – instead of directly using terms like “deluxe rooms” and “continental breakfast”, it might be a good idea to fully describe what these services entail. Put yourself in the guest’s shoes and talk in the kind of language they would appreciate. This is hotel revenue management at its best.

Increase RevPAR Using Online Distribution Channels

Utilizing direct online bookings seems to be the best solution for struggling hotels. With the credit crunch all over the United States, Europe, and Asia, it seems clear that innovations should be of utmost consideration among hotel revenue managers. Most companies, especially those involved in the hospitality industry, are working to simplify their current processes and benchmark against market leaders to boost profitability. At the center of this initiative is the utilization of cutting-edge technologies that will help increase RevPAR and improve hotel revenue from the internet.

For most hotels, increasing their online presence will effectively lower their cost and reduce the need for other hotel distribution channels. Doing so will help improve direct brand recognition as well as improve their profit for every booking. And if you add the convenient and opportunity of being available 24/7 on the internet, it is only to be expected that hotel sales will shoot up dramatically.

Using software applications such as the RevPAR Guru can help in this instance. After all, it is not enough to be available anymore. It is important for hotel revenue managers to concentrate at their yield management. They need to use inventory software and useful hotel software to find out when they should lower their rates and when they can charge more.

In addition, it is also important to take note that transforming the hotel’s website into a 24/7 booking channel is crucial. Certain individuals prefer to do everything online instead of getting up and calling on the phone for reservations. There is a huge opportunity in this segment. Implementing all this can lead to minimal distribution spending, enhanced loyalty, and increased hotel sales.

The first step into reaping all these benefit is to realize that internet marketing, search engine optimization, pay-per-click campaigns, and other online strategies can be useful. As the internet becomes an even more important part of generating hotel sales, hotel establishments that offer online booking solutions have a better possibility of attracting untapped markets.

From Managing to Generating Customer Demand in Revenue Management

With the stagnation in the market today, hotel revenue managers need to shift their focus from managing demand to generating demand. Supply will remain consistent because with the exception of capacity expansion, this inventory is fixed. Previously, hotel revenue management was designed to maximize profits during the high and peak season. After all, any yield management teams are always on the lookout for better business ideas that will increase hotel sales and boost profitability.

No one probably expected that such a drastic turnaround can occur within such a short timeframe. Right now, every hotelier is scrambling to use hotel revenue software not to manage demand but to increase it through accurate price predications, improve hotel online channel distribution, and analyze market conditions. Nevertheless, it is important to recognize that hotel revenue management plays an even bigger role in the tough times than in the good ones. To help you improve your yield management strategy, below are some tips:

Analyze Existing Market Strategies – before reacting to current difficulties in a “panic” mode, it is important to step back and see what methodologies are currently effective. If the previous marketing plan implemented by the hotel is still working, it would be best to complement it instead of eliminating it altogether.

Restructure the Value Proposition of the Property – what kind of message does the hotel send out to prospects? Looking into the value proposition found on the website, travel portals, and even travel agencies have a great impact on the customer’s buying decision. It is crucial to know whether you should brand your hotel as a “family-friendly” establishment, a “pet friendly environment”, a “business accommodations hotel” or any other proposition.

Make the Customer Find You – potential customers cannot stay at your hotel if they don’t know you exist? Market your hotel effectively online and offline. Your business should be visible across all hotel sales channels. This is one of the key methods of increasing hotel bookings and RevPAR.

Hotel Profits to Increase - Goldman Sachs

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.

RevPAR Guru Helps Hotels Increase Conversion Rate

From the United States to Asia, hotel occupancy, hotel rates, and RevPAR are at their all-time lows. It is said that desperate times calls for desperate strategies. However, while this saying may be true in certain instances, smart strategies are more important in tacking revenue problems in this case. Improving hotel revenue will take so much more than just crossing your fingers. It involves a comprehensive strategy that will enable the hotel, as a business organization, to move forward even during the bad times.

Some of the areas that hotel revenue managers need to focus on to improve RevPAR include:

System Automation

Majority of hotels have a complex system regarding pricing, inventory, and marketing. Manually doing all these tasks can be time-consuming and expensive especially if you add the amount of market research that hotels usually conduct. In addition, relying on humans is subject to errors so this can mean lost income for the hotel. Implementing a good system that can eliminate human error will help hotels achieve sustainable growth especially if they use a stable inventory and pricing software like RevPAR Guru.

Integrating Hotel Operations

As was mentioned earlier, hotels have a complex system wherein everything must work together to function cohesively. In theory, every area of hotel operation is “compatible” with each other. However, in the actual environment, multiple systems do not usually work cohesively with each other. In order to eliminate incompatibility problems and boost hotel sales, the revenue management team needs to look for a RMS system that has a stable platform and user-friendly interface. Software applications like RevPAR Guru will empower an organization to improve online rate distribution, reach pricing optimization, and boost profitability.

Increase in Conversion Rate

One of the major things that hotel revenue managers need to focus on is establishing an effective web presence on the internet. This does not mean merely creating a website and optimizing the pages to achieve rankings. It also means promoting the service to the right target market. Having a lot of traffic does not necessarily lead to high conversion.

Automated Revenue Management Will Improve Efficiency

When organic hotel sales start to go down, hotel revenue management takes on a new level of importance. This is because it becomes critical for hotels to go after the remaining market. The marketing department will also experience the same problems and opportunities. To reduce redundancies, the two can be meshed together.

Avoiding Redundancies

Implementing technologies such as the RevPAR Guru can help boost efficiency greatly. This solution can provide automated forecasting not only for North American properties but for properties anywhere in the world. A significant number of man-hours can be saved. And the best part is, the result of the system will increase RevPAR and manifest itself to profit optimization.

More than using technology though, there should also be cooperation between the hotels sales & marketing department and revenue management. By working together, hotel managers can identify areas for promotions and what the optimal hotel rate should be.

In the previous articles, we have discussed the tension between the two groups. For example, the misconception of hotel managers that sales are only interested in profits. This type of thinking should be eliminated for any type of effective cooperation to take place.

RevPAR Guru as a Tool

Before RevPAR Guru has been introduced, hotel revenue managers simply used Excel to calculate the appropriate rate. This is time-consuming and typically inaccurate. But there is no need to say with this old style. By using algorithm processes to process data, the software is able to project how much the hotel can expect from its transient sales.

However, thinking that any software application can replace the touch of an employee is quite misguided. It should be seen as a tool rather than the ultimate solution. For example, it is not a substitute for hotel revenue managers. Some tasks that are related to hotel management are things that only a human being with actual experience and rational thinking can solve.

With this in mind, it is even more important to respect the capabilities of hotel revenue managers. It is true that technology today is incredibly advanced. Booking software, inventory software, and revenue management software are impressive. Without a human to feed and interpret data though, software applications can do just the opposite of what they were designed to do.

Pre-Marketing Plan in Revenue Management Strategy

In any business undertaking, the marketing plan is seen as a crucial tool to success. But what many fail to consider is that revenue management should be an integral part of the marketing strategy and should be considered distinct from the marketing budget. Many hoteliers seem to think that the budget and the revenue management are one and the same thing. Even those who have a better understanding of it believe that the marketing budget and the revenue management strategy are interrelated and needs to be placed on the same page.

If there’s one thing you should know right now, it is the fact that this belief isn’t accurate. The hotel revenue management system needs to incorporate different revenue sources including the hotel web site, the electronic distribution channel, and the hotel GDS. In addition, it requires the involvement of all profit departments of the hotel such as the sales department. It is a revolving process that requires adjustment according to specific market conditions. This is very much unlike the budget wherein everything is set in stone.

A good hotel revenue management strategy requires profit optimization and tactics that will boost hotel sales. It should encompass everything from the cost of commissions to optimizing revenue. This means manipulating GDS, using electronic distribution channels, and allocating proper resources. Its development should enable sales to determine the inventory available in a given period and at what rate these rooms should be rented out. So how, exactly should this process work?

The Four Step Process

• Gather the Info – the process starts off by seeking relevant information that will provide an accurate forecast. The report logs from the previous years should be sorted out. In addition, a situational analysis should be completed to identity possible opportunities and challenges for the year ahead.
• Analyze Revenue Information – all revenue drivers should be looked into. Through this, those with the most potential will be identified. Currently, it is a well-known fact that a significant part of the hotel sales will come from the internet.
• Facilitation – everyone involved in increasing the hotel’s revenue should come together. This “meeting of the mind” will enable the best possible strategy to be identified.
• Revenue management strategy – after compromise, the situational analysis, and everything else, the revenue strategy should be created. The main aim is to increase RevPAR by utilizing an ideal mix of revenue, rate, and software solutions.

After the strategy has been created, it is important for the “facilitation” group to periodically meet in order to discuss the strategy. Reviewing it and basing it on reality is the key to successful hotel revenue management implementation.

People Behind the Revenue Management System

An effective hotel revenue management system is the key driver behind the hospitality industry’s ability to survive the economic crisis, retain and attract customers, and increase RevPAR. And the importance of revenue management has never been more important than now. Since the market is expected to decline overall, the average RevPAR and other hotel metrics will expectedly experience a downtrend as well. With a good system in place though, a hotel revenue manager can look past this into the real potential of his hotel.

Getting a deeper understanding of the hotel clients is crucial in this stage. For example, in a normal urban/suburban transient property for corporate executives, price sensitivity is lower because they are not the ones paying the bill. Even if the corporation is managing the cost of travel, the reality is that travelers will still prefer prime locations, complete facilities, and other amenities.

Another factor that should be considered is the bookings from hotel electronic sources. Because of the popularity of the internet, electronic hotel sales have been steadily increasing for the past decade. Hotel sales channels such as e-commerce, franchise web sites, and GDS systems should be looked into carefully. Usually, the hotel sales derived from these mediums come from leisure travelers who are looking for good deals.

It is important to measure the potential of each contract. This will enable both the hotel revenue manager as well as the sales staff determine how the business can be aligned in relation to their client profiles. But more than that, all the people involved in the hotel revenue management strategy should really believe that it is effective in order to execute it property and boost profitability.

If the people who are behind the yield management strategy and hotel software don’t believe in its capability, it will reflect on their performance. Remember that no matter how sophisticated inventory software, yield management software, or hotel software is; ultimately it is still people who use these tools. Unless it is utilized to increase RevPAR and increase hotel profitability, it will just be another tool that can be effective or ineffective in the decision-making process.

Improve Hotel Revenue Management During the Tough Times

There is a saying that a “rising tide floats all boats”. In the hospitality industry, it just means that when the market is doing well, there is a good chance that your hotel will do good as well. The problem starts when the market is doing badly. As all hotel revenue managers probably already know, today’s situation is unique than ever before. Travelling has become a popular activity until the recent economic crisis. And the result is that there are so many rooms and inventory from various hotel establishments. Some have no choice but to drastically lower their prices just to generate hotel sales.

If you have previously already discovering that going with the tide is not something you want for your hotel, then good for you. Your hotel revenue management system can probably withstand different conditions in the market. However, if you’ve been left behind because you have become too comfortable in the few years past, then all is not lost. You can still increase hotel sales and boost profitability by looking over these targeted areas:

• Hotel Rate Positioning – first and foremost, decide on the hotel rate structure. It is important to look at your market position as well as your competitive set. Where are you located and when is your peak season? Knowing who your clients are and what they can afford is critical in determining the hotel rate positioning.

• Revenue Management System – if you don’t have a hotel revenue management strategy in place already, it is critical to design one. Whether you are running a chain of inns or a 900-room resort, having a good system in place ensures that you generate the best hotel room rates based on facts. The revenue management system should encompass the booking software, inventory software, and historical data for more accurate results.

• Property Management Software – every hotel has certain reports and data that are used for management. The hotel revenue manager probably knows all about this and decides on the yield management strategy of the properly. However, the hotel staff should also know the system well. After they know the basic, additional training should be given to maximize the potential of the property management software.

There are other aspects that should be looked into in order to come up with the best overall strategy for the hotel. While looking through this endeavor, checking how the hotel is performing when it comes to hotel online sales is also important because majority of sales is expected to come from the internet for most hotels.

Using Hotel Revenue Management Software to Increase RevPAR

A Cornell University Study, published in the Analysis if Revenue Management Vol. 5, No. 6, in the April of 2005, revealed that hotels that price above their competitors have the most aggressive hotel revenue managers. They are the best when it comes to increasing RevPAR, improving yield management, and boosting profitability. Many hotels want to raise their room rates in order to increase RevPAR but this strategy may not always work. Its success depends on brand image, amount of available facilities, location, demand, the number of competition, and general economic condition.

It should be noted though that the most successful hotels when it comes to revenue per available room implements hotel revenue management strategies. However, it you should note that the requirements of revenue management systems for individual hotels are different. For example, the needs of a 50-room boutique establishment are far different form a 600-room chain hotel. Before buying inventory software, booking software, or a yield management software, establishing the exact requirements of the hotel in terms of RMS systems and functionality is important.

If you’re anticipating the implementation or the upgrade of a system, evaluating the potential return of investment of the revenue management systems including their sustainability needs to be done. Below are some guidelines that will help you find the best hotel revenue management software:

Departmental Needs – each department has its own requirement when it comes to documentations needs, report, and other data gathering and retrieval technique for effective decision making. Hotel revenue managers need to know the minimum and the optimal requirement of each department.

Existing Hotel Revenue Management System – if you already have a revenue management system in place, consider if it would be more cost effective to replace it or to add certain functionalities. In addition, be sure to find out what the exact requirements are. The last thing you want is to have the same problems in the new system.

Hotel Channel Management – most hotel applications have this feature. Finding the right one is only a matter of how complex your business structure and the promotional mix. A system that allows you to evaluate the different revenue streams is a particularly effective one.

Customer Behavior Analysis – a good revenue management system should be able to forecast customer behavior based on historical data and customer information. The information helps the hotel revenue managers make better decisions based on actual data, not on guess work.

Simple Ways to Increase Hotel Internet Sales Part 2

If you want to increase your hotel’s internet sales, it is important to allocate a significant amount of resources into internet marketing as well. Right now, it is believed that all major hotel brands are already generating more than 40 percent of their bookings through their hotel internet channels. By 2010, it is projected that 45 percent of bookings will be completed using internet booking software. Before you invest a significant amount of money in your online endeavors though, it is critical to know which areas and channels you need to focus on:

Paid Search Campaigns

Investing in search engine optimization (SEO) may be a good idea, but it takes time before results start to trickle in. An alternative to this is the pay per click campaign. Popular programs include Google AdWords and Yahoo Search Marketing. This program is worth considering for the hotel industry because it significantly improves web visibility. PPC is a particularly beneficial program while you’re waiting for your site to increase in ranking.

After your hotel website builds a good reputation, you can gradually stop this campaign. Some people use this as a replacement. However, it is never a good idea to use this over the long-term because of the extensive investment involved in order to sustain it. In addition, searchers are more inclined to trust search engine results instead of paid results. This will translate to better hotel revenue management on your bottom line.

Packages and Promotions

Just because you’re marketing your services online doesn’t mean you need to give up on offline marketing strategies altogether. Find out what packages click with your target audience and include it in your online service offerings. If people are booking your hotel because of its good location, free breakfast, corporate amenities, and scenic views, be sure to mention it on different hotel distribution channels including the internet.

User Generated Content

Some of the most successful websites today rely on users to generate its content. For example, video sharing sites, P2P, Wikipedia, and even YouTube depends on thousands of users to create and patronize its services. The same concept holds true in the hospitality industry. For example, social media sites can be very helpful in boosting hotel profitability. This is because people generally trust the opinions of others within their network; when their friends give reviews, they listen. In addition, travel-centric media sites that offer reviews are used by countless people when making purchase decisions.

Simple Ways to Increase Hotel Internet Sales Part 1

A decade ago, hotel revenue managers would never have thought that the internet will become the most important hotel distribution channel worldwide. In 2008, 37 to 38 percent of all hotel bookings are believed to have come from the internet. Aside from this, at least another third of hotel sales are influenced by online mediums although the actual reservation is done offline. For example, bookings done through walk-ins, call centers, and travel agencies are influenced, by a large part, by what people see and read online. It is not surprising then that certain hotels were able to cope with the tough times and even increase their hotel internet sales despite the tough times.

Creating and Updating Hotel Websites

Hotel internet marketing revolves around the main hotel website. It should be the first thing that a hotel revenue manager focuses on. In many cases, it is either the first contact or the last contact a company makes with the customer. It is important that the hotel’s website be a top priority especially since the market for hotel online sales is huge. The main objective would be to create an appealing overall image of the amenities.

A lot of hoteliers make the mistake of becoming contented with the same website they had five years ago. Time has changed drastically since then. Now, it is essential to have striking graphic design, internet hotel reservation software, real time information on prices, and booking software among others. If promoted properly, this can be a significant amount of business to the establishment.

Search Engine Optimization

Every person who has tried their hand in online promotions knows the importance of search engines. Majority of web traffic will come from search engines because this is the first tool people look into when trying to find information, product, or services on the internet. By SEO, it doesn’t mean that using popular key phrases on the content is enough.

Instead, a full-fledged campaign that involves link building, search engine submissions, and content optimization should be used. This is the best way to increase internet sales for your hotel. If you decide to hire a SEO specialist or an agency for this campaign, make sure you get those who have actual experience and knowledge about hotel revenue management.

The problem with most SEO companies in the market is that they have the tendency to focus merely on increasing traffic with no regards to its relevancy to the hotel. The result is low conversion rate and a lot of wasted money. Looking for someone with hotel industry knowledge is important.

Measuring Weekly Hotel Performance

It is no secret that the hospitality industry has been struggling in different fronts ever since the global economic crisis occurred. To get an accurate overview of the condition in the United States today, performance measurements for the week March 15-21 has been conducted. Metrics per month and per quarter are very helpful in determining financial performance, but this weekly year-on-year comparison provides a better overview of the real effects of the tough times.

Using this measurement, all three key measurements declined according to the STR. The occupancy rate fell by 4.7 percent, average daily rate declined 8.0 percent, and revenue per available room dropped to 12.3 percent this week. The average daily rate is now pegged at US$99092 while RevPAR is at $US58.45. If this is not alarming already, all major cities except for Washington DC showed declining performance during this timeframe.

Washington, DC was the only market that increased on its key performance measurements. However, even that increase is on the low side of the scale. Occupancy was 69 percent which is 1.7 percent. Meanwhile ADR was pegged at US$152.91 which is up 0.9 percent. And the RevPAR of the city increased to US$105.46 which is up 2.6 percent from last year.

Seeing that the United States is a very diverse market, its remaining top 25 cities showed mixed rates. For example, St. Louis, Illinois showed an increase in occupancy while Houston, Texas declined by 1.3 percent. One notable decrease is that from New York, New York. It dropped 25.5 percent in its ADR which is the largest in the research. The city also posted the largest RevPAR decrease because it dropped 36.6 percent to only US$151.05.

Given these severe setbacks in the hospitality industry, hotel revenue managers might wonder, is there still hope in increasing hotel sales in the next few months? The truth is, the condition today is one of the worst in history. In fact, economic performance has not been this bad since the Great Depression.

Yet, it is important to realize that the conditions from the previous eras are far different from the conditions today. Now, it is possible to use inventory software, hotel revenue management software, and internet marketing to reach a larger audience: a worldwide audience. With this fact in mind, the answer is yes. It is possible to increase RevPAR and boost hotel sales even during difficult economic times.

Increase Hotel Sales by Using RevPAR Guru

Despite the amount of sophisticated technology available today, a lot of hotels are still suffering from manual processing, and poor information flow. They fail to get updated and real-time information about guest, inventory levels, and industry data. This leads to reduced revenue and has a severe impact on hotel profitability. In today’s economic condition when the industry is struggling just to break-even, it is critical to utilize all available tools to improve RevPAR and boost hotel sales.

Among some of the most common mistake that a hotel revenue managers can make include focusing too much on administrative processes instead of sales, unreliable information flow among hotel distribution channels, lack of leads about sales statistics, redundant systems and infrastructure, and inflexible systems that cannot support new hotel rate strategies and new technologies.

Requirements of Hotel Revenue Management Software

• User-friendly interface
• Real time inventory information
• Modular structure
• Integrated technology elements including channel management, revenue management, account management, business management, and contact management
• Solid technology platform
• Data accuracy

These elements are very useful in when it comes to hotel management. It helps streamline processes, improve efficiency, and most importantly, increase hotel revenue.

RevPAR Guru: Solving your Problems in Real Time

With all these challenges, it is a good thing that a software application such as the RevPAR Guru exists to help hoteliers. It is a revenue management software, hotel booking software, and hotel management systems software combined into one. It is quick and easy to implement. With the right utilization, it can show a significant improvement on hotel sales.

It is critical to choose an application that has been specifically designed for hotel revenue management. There are many software solutions available but only a few of them can actually meet the unique needs of a hospitality business. It is true that certain technologies can be “modified” to adapt to the hotel’s requirements. However, it is very expensive and in some cases, it is not flexible enough to meet ongoing improvements. The RevPAR Guru is different because it understands all the challenges of the business. All functions are designed to deliver effective yield management and profit optimization.

It is not surprising that a lot of hotel revenue managers are turning to RevPAR Guru to help them cope with the changing times. The software application is very useful in both good economic conditions and bad.

Increase RevPAR by Improving Performance

Revenue per available room (RevPAR) is an undeniably an important factor in increasing hotel sales and boosting profitability overall. However, in some cases, it is also critical to look at other factors that might affect performance. Decisions surrounding the hotel size, long-term strategy, and service orientation all play a role in the hotel’s profitability. Take note that aside from RevPAR, another metric of the hotel’s financial health s performance. When times are lean, hotel revenue managers need to improve operational processes in order to enhance hotel profitability.

On the other hand, performance is also essential during the good times. It can be used as a tool for profit optimization. Effective hotel rate distribution, rate strategies, and the use of forecasting and inventory software are all helpful in ensuring the best results possible. Sometimes, certain hotel chains even take over their competitors in order to experience economies of scale through productivity gains.
There is no doubt that once hotel revenue managers understand how important productivity, RevPAR will increase. These two elements complement, rather than contradict, each other. But many make the mistake of concentrating on one but not the other. The balance between occupancy rate and hotel room rate can be categorized as RevPAR, it basically shows the income of the hotel. Meanwhile, performance and efficiency has more to do with controlling costs.

Hotels are generally labor-intensive but it does not necessarily mean that hotel revenue managers should allow the property to lose money just to keep up the current level of service. Improving efficiency may be a challenge but it is definitely possible to achieve. Today’s hoteliers find today’s condition particularly difficult though because there are too many rooms that are left unoccupied while fixed labor costs still remain.

Fortunately, there are tools like RevPAR Guru. This software application provides real time information about historical data, occupancy levels, and available amount of rooms. Good decisions can be made in real time. Prices can be adjusted according to actual demand and supply while unnecessary costs are eliminated through the use of this accurate forecasting software. It is not surprising that a lot of hoteliers are looking into this software for a solution. In tough economic times, there is no room for error. Basing your decisions on facts, and not guesswork, is your best bet in surviving the current downturn in the hotel industry.