Hotel Revenue Management: How to Increase Your Bottom Line

1. Invest in a Mobile PMS: A mobile PMS is the heart of a hotel’s tech stack 一 and the heart of its revenue strategy.  This is because a PMS creates the foundation of a unified guest profile (including rate, stay and purchase history) that can be used to inform more targeted marketing campaigns, and more meaningful interactions with staff and technology touchpoints. The accuracy of hotel industry forecasting comes down to how good the data the hotelier uses is. Right now, at least 34% of hoteliers have yet to harness the full power of predictive data. A mobile PMS allows hotel managers to innovate ahead of the market while improving efficiency.
2. Consider Investing in an CRM: A CRM can build on this profile by adding a customer’s loyalty status, preferences, travel intent, and survey results. This will allow for even more nuanced marketing campaigns, as well as better analytics for predicting future revenue and campaign effectiveness.
3.  …Or an RMS: By accessing a PMS’s inventory, stay and folio data, an RMS can perfect a hotel’s rates, restrictions and overbooking strategies. This can significantly enhance the accuracy of its demand forecasts, heighten the reaction time for pricing and rate updates, and optimize the hotel’s distribution and revenue.
4. Choose Partners Wisely: Even the largest hotel chains need partners to help them attract more guests. However, not all platforms are worth partnering with. Companies need to make decisions based on commission and the platforms that best overlap with their target markets.
5. Build Brand Reputation: Every brand has a reputation, even if it only attracts a small niche. Do not allow your sub-sector to define what your brand should be. Create something unique that customers feel proud to be associated with. Then, create marketing material and find public relations opportunities that feed this goal. Building an authentic and positive reputation is crucial for your hotel’s bottom line.  In fact, for every 1% increase in a hotel’s reputation, RevPAR can increase by as much as 0.96%.  
6. Rely on Digital Marketing: Online marketing made it much easier for companies to build a brand, grow awareness and reach the people most likely to contribute to the wealth and health of the business. From search engine optimization to PPC ads, the opportunities are endless. You also benefit from better cost-effectiveness compared to more traditional forms of marketing.

If you would like to learn more, check out our new free ebook entitled, Budgeting During a Crisis: What is the Mission Critical Guest Experience?Here, StayNTouch partnered with OpenKey and TrustYou to explore the essential contactless solutions that hotels should include in their budget assessments in the post-COVID new normal.  Get your free copy today!