4 Questions You Need to Ask While Investing in a Hotel Revenue Management Software
Investing in the right hotel revenue management software is crucial for the growth of your hotel business.
Here are 4 questions you need to ask when you invest in hotel revenue management software.
1. What is hotel revenue optimization?
Hotel revenue optimization involves the strategic management of pricing, inventory, demand, and distribution channels to maximize hotel revenue. It makes use of pricing optimization, demand forecasting, demand modeling, customer behavior patterns, and predictions to ensure the right room is sold to the right customer at the right time for the right price. Hotel revenue management software can help you optimize and maximize hotel revenue.
2. Why does a hotel need a hotel revenue management software? What are its advantages over a revenue manager doing it traditionally?
The number of distribution channels has increased, and the hotel inventory is available on more channels. The rates and inventory keep on updating in many places and it’s becoming increasingly time-consuming for a revenue manager to keep track of these changes.
A hotel revenue software makes and implements tactical decisions to integrated selling systems that help free up the revenue manager’s time allowing them to focus more on other aspects of the business such as developing revenue strategies. The system automatically distributes rates, and inventory controls, removing concerns over the potential loss of revenue opportunities.
3.How to select the right software for my hotel business?
Before you select the right hotel management software, you need to be clear with what features you need and want. There are two types of hotel management software: Premise-based software and Cloud-based hotel management software. Some of the major differences between the two are as follows:
|Premise-Based Software||Cloud-Based Hotel Management Software|
|Stores the data locally||Stores the data on the cloud that can be accessed from anywhere across the globe.|
|There is a limit to the number of employees who can use the software at a single time.||Hotel owners can add as many users they require without any added cost.|
In the current scenario, investing in a cloud-based hotel revenue management software makes sense as it offers a number of benefits that cannot be matched by on-premise systems.
However, before you purchase a web-based hotel management software, make sure it integrates with your current website.
4. Can the hotel revenue management software focus on direct bookings? Can it help with OTA management as well?
A website is essential to drive direct bookings. Your website visitors can be encouraged to make direct bookings so that you retain the entire share of profits. A hotel revenue management system easily integrates with your web booking engine and helps you capture the direct booking on the website.
For OTA management, a hotel revenue management software powers you with features needed to maximize OTA hotel bookings. It allows you to use the PMS to update rates and inventory across different OTAs to maximize your reach. You can track the bookings, and also have access to reports that give insights with details such as peak periods and from where most of your bookings come from, etc. that can help you strategize your next move to grow your hotel business.
The answers to the above-mentioned questions will help you to invest in the right hotel revenue management software, which in turn will help you grow your hotel business faster.
So, ready to invest in a dynamic hotel revenue management software? Aiosell’s automated revenue management system can help. Try it now and pay only when you see results!