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A groundbreaking new report by the Urban Land Institute in Washington, D.C. explores sustainability in the hospitality industry and examines ways in which hotels are incorporating eco-friendly best practices into both operations and construction. The study includes insights from leading hotel owners, developers and investors.

Every hotel owner wants to know how he can increase the traffic to the website, and at the same time, boost direct bookings. The key to accomplish both the objectives is to design a site that is accessible even to disabled people. It will not only improve the usability for all types of visitors, but it will also improve your market penetration. Designing ADA website is also very imperative to prevent legitimate complications. In addition to this, an ADA feature will aid in improving the website performance in search engines.

The underappreciated city of Minneapolis served as host for the 2019 edition of HITEC (produced by HFTP) which wrapped up its most recent four-day run on June 20, 2019. In the days and weeks leading up to the event, meeting solicitations and party invites filled my inbox at a growth rate any VC or entrepreneur would envy. As a first-timer to this international hospitality technology behemoth, it became apparent that HITEC actually begins a few weeks prior to when that first request or invitation lands in your over-stuffed inbox.

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. 



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How to Manage Revenue in the Growing Extended Stay Market

02/22/2016

Extended-stay accommodations are long time players in the hospitality industry, with the majority of hotel groups having one or more long-stay brands within their portfolio. Extended-stay accommodation typically refers to extended-stay hotels, aparthotels and serviced apartments – and their popularity over the recent years have been quickly on the rise.

According to Smith Travel Research, extended-stay occupancy rates in 2014 increased to 76 percent, up from 64 percent five years earlier. Homewood Suites by Hilton, an upscale extended-stay brand, similarly reported that their extended-stay revenues are up 12 percent.  With this type of rapid growth, properties in this sector need to equip themselves with tools that optimize their demand and price based on changing market conditions.

Applying revenue management in properties with extended-stay demand does require several unique factors for consideration. This article addresses the preliminary consideration in optimizing revenues while addressing the complex dynamics that the extended stay business brings.

Revenue Management Process

With typically more unique business considerations than other hotel segments, extended-stay hotels may find themselves at a bit of a loss on beginning to manage all of these decisions.

As a starting point, extended-stay hotels need to collect reliable data to build an accurate forecast. Strong data will help produce a strong understanding of the overall demand, and this understanding is needed to predict what future demand will look like and how it should be managed. Historical data should include rooms sold, room types booked vs. room types occupied and upgrades. Hotels should also break down the revenue by day and market segment for any specific timeframes.

Data capture processes should be set up or reviewed to ensure the hotel truly understands its guests. Some of these additional data variables may include asking guests why they are visiting, recording whether they are a long- or short-stay guest, and if his or her price is fixed or flexible or includes additional yielding restrictions such as last room availability (LRA). With an in-depth understanding of guests and their behavior, a future demand forecast can be built.

Forecasting is essential for properties to respond to constantly changing market conditions, helping them make strategic and informed decisions. It is also important to consider the elements in extended-stay properties that can impact stay patterns significantly. For extended-stay hotels, this means examining guests that extend their stays or depart early, where the consumption of inventory is over a significant period of time. It is especially important over high demand periods to understand what demand may be displaced by accepting shorter stay demand or, adversely, where those shorter stay bookings are needed to fill in the gaps.

With all of these complexities to consider, it is important that extended-stay hotels do not rely on pricing management alone, but also implement controls that can help manage all demand by arrival date and duration of stay. These controls also account for lost revenues through cancellations or no shows, and helps ensure that hotels know where they might turn away guests due to gaps in inventory. A common example of this could be turning away a 30-night website inquiry because the hotel was sold out on one or two nights in the desired room type. These controls also ensure that hotels know how to balance transient and group business, since the acceptance of groups can significant impact the disruption of stay patterns more so than in shorter-stay properties.

Many of these complex business factors should be considered in conjunction of one another. Doing so requires a consistent and disciplined approach to data collection, forecasting and the application of analytics. Beginning with proper data collection and a thorough understanding of guest behavior, extended-stay hotels can build a starting foundation to navigate the complexities of extended-stay revenue management.

The hotel industry has long been known for its complexity, and it becomes even more complex when extended-stay properties are involved. However, extended-stay hoteliers now have access to solutions and strategies that will increase profits and guide them through unraveling their business complexities. Combining the right data with the right analytics will ensure that extended-stay hotels attract the right guests, generate the most revenue and continue on their meteoric rise within the industry.

About The Author
Joerg Happel
Senior Product Manager
IDeaS Revenue Solutions


Joerg Happel is the senior product manager for IDeaS Revenue Solutions.

 
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