Three essential tools for any revenue manager

Revenue management is here to stay, or at least it seems that way. It’s a fact that the specific characteristics of the hotel sector have made a decisive contribution in recent years to all establishments consolidating their Revenue Management Department in light of the need to optimise income, bearing in mind that rooms are limited, inventory short-lived, and different segments of the market must be targeted.

In this regard, intermediation and the changes experienced on the channel as a consequence of digital transformation has much to answer for. A lack of market presence means not selling and it’s obvious that to achieve this visibility the hotelier is obliged to use a tool that has changed from being completely unknown to enjoying a starring role in the commercialisation process.

On the other hand, although competing has always been complicated, now offering the best service is not enough. Experience in purchasing and the stay takes priority. In other words, tourists value aspects that previously went unperceived and the search and booking process has become a part of the product/service they wish to acquire.

Travellers today are demanding. They are not willing to pay more for less. Value has become a keyword in setting prices meaning, in many cases, a poor price and a good service can become a real threat if you bear in mind that the Internet can result in any uncomfortable detail becoming “viral”.

In light of these points, it’s clear that the task of the revenue manager is not easy. There are many elements that come into play when setting rates, such that using a blank sheet of paper, a pen, a calculator or, in the best case scenario, an Excel spreadsheet, is no longer sufficient.

Technology can and should be converted into an ally. There are tools that clarify decision making and prevent the hotel from committing mistakes that may affect its brand image at a certain point.

Consequently, one of the most important aspects is the often repeated concept of “parity” when referring to distribution on the Internet. Elements such as the law or famous “clauses” can drive you mad with how complicated they are but aside from all this, what can’t be permitted is having prices above intermediaries if you are hoping to achieve an increase in direct bookings. Unsurprisingly, the sense that the direct sale is more “expensive” is one of the hotelier’s battlegrounds in this new environment.

As such, once the hotel’s search process is commenced, if your client has reached your website it’s important you don’t let them escape. Website design and the usability of a webpage has been discussed on multiple occasions but what happens if the tourist detects that you’re selling above the price offered on their OTA of reference? Nothing. Technology tools designed by hoteliers and created for hoteliers will help you.

For example, Parity Maker enables you to match your price with the rate offered by the intermediary used as a reference in real time. The tourist will see how the price is reduced and reaches the same value as the price being offered on the online travel agency.

Furthermore, there is a chance to detect these disparities beforehand. PriceSeeker advises you through personalised searches while Rate Check detects them when they occur, guaranteeing you always offer the best price.

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