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Definitely Doug 10/18/19
Posted: 12/06/2019

Sustainable Innovation
 
Sustainability can yield multiple benefits to hotels. Saving energy and water yields direct cost savings. Revenue can be generated by guests who prefer to deal with businesses that minimize their environmental impact. And many would argue that conserving scarce resources is simply the right thing to do.

Definitely Doug 12/6/19
Posted: 12/06/2019

Meetings Innovation
 
The sale and delivery of groups and meetings is perhaps the most significant and under-automated functions for many hotels. Even though groups often account for 30% to 60% of revenue, most group bookings are still handled manually for most if not all of steps, as they move from a meeting planner’s research to a confirmed booking.

The biggest enemy to any system is complexity. In a system of inputs and outputs, such as an enterprise system, more complexity means more parts are used in interaction with inputs to create the outputs. Every part that must be built and maintained costs time and money

Tracking the evolution of key performance indicators (KPIs) over time allows hoteliers to identify meaningful trends, create forecasts and budgets and assess the results of different strategies. To perform this kind of analysis, data has to be recorded within consistent time intervals and in chronological order. This is known as a time series.

Definitely Doug 11/15/19
Posted: 11/15/2019

Every time I turn around these days, I see a new vendor or product promising something called a complete Guest Experience Management, Guest Journey Management, or Guest Engagement (or some variation on those words). This week I looked at some of the emerging products claiming to be in this space, both to try to better understand it, and to see what promising ideas it may hold.



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Pitfalls of a Pricing-Only Approach for Hotels

08/04/2016
by Charles Wang
Not All Revenue is the Same

What happens when hotels use revenue management approaches that focus only on pricing and exclude other analytical aspects? 

Quite simply, it leaves them at an unfortunate disadvantage. Hotels that optimize both pricing and inventory (i.e., business mix, stay patterns, strategic overbooking) improve revenue performance over hotels optimizing pricing alone.

A pricing-only approach focuses attention on pricing single arrival dates. This leads to key factors being neglected, including length of stay, derived rates and other rates – such as contracted rates that need their availability managed to prevent overselling cheaper rates.

The best overall revenue optimization is achieved through finely balancing the management of all business – not just the priceable business. A dynamic pricing approach analytically assesses price sensitivity while accounting for season, day-of-week, days-to-arrival and length of stay. Additionally, this approach helps manage rate availability, overbooking and stay patterns to drive the most revenue overall.

An easy way to think about the differences between a dynamic pricing approach and a pricing-only approach is to look at the quality of your revenue. Pricing-only approaches will fill your hotel fast and easy. While it may seem great having those initial bookings, hotels relying solely on pricing-only strategies see the inevitable crash and burn, eventually losing higher paying customers and revenue. Dynamic pricing approaches, on the other hand, use both pricing and availability to fill hotels while providing long-term sustainability for healthy revenue performance and growth.

Not all revenue is the same. For healthy revenue performance, it is critical to use analytically-derived dynamic pricing strategies to fill your hotel with quality business that provides the greatest revenue performance.

About The Author
Charles Wang
Regional Head
IDeaS Advisory Services


Charles Wang is the regional head of IDeaS Advisory Services and leads team members in demonstrating the capability of improved revenue performance and building data-driven and process improvement revenue management cultures for clients within the Asia Pacific and Greater China region.

 
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