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Time is limited. Once it’s gone, you can’t gain it back. Similarly, once a room goes unsold for a night, it will go unsold forever. There’s no way to recover that loss, because there’s no way to go back in time.
 
Many hotels fight this limitation by trying to sell as many rooms as possible. If all the rooms are completely booked, time no longer becomes a factor. But most don’t have the luxury of being at-capacity every single night. That’s why last-minute booking apps are growing in popularity in the industry, where hotels can make the most of each day. These apps specifically target guests who don’t plan far in advance, seeking accommodations from one week to one minute later.
 
There are several different ways your hotel can benefit from using last-minute booking apps in your business strategy.

IoT is Coming, Jon Snow…
Posted: 05/21/2019

Hospitality is prime for the coming advent of the various devices that make up the Internet of Things. Estimates show the industry now represents 17.5 million rooms worldwide and savvy guests are demanding more personalization and an overall improved guest experience along their connected travel journey and belief is that IoT can bring this to reality. 

The forces driving local search rankings are constantly changing. But recent studies suggest that in 2019, four key factors make up the local search algorithm. 
 
The most significant factor is Google My Business (GMB). If you’re not on it, get on it now.

The robotic revolution in the hospitality industry might seem to have taken a step back. This January, the famously quirky Henn-Na Hotel in Japan fired half of its 243 robot staff. The robotic workforce reportedly irritated guests and frequently broke down.

Think about the moment when you first enter your hotel room. Look around: Does the room tell you anything unique about the hotel where you are staying? Or is it all beige walls and double beds with white covers, and you have to walk back outside and look at the sign on the hotel’s facade to even remember where you are?



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Pitfalls of a Pricing-Only Approach for Hotels

08/04/2016
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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