What new revenue management trends can help hotels adapt to the changing hospitality landscape?

Embracing new revenue management trends, such as dynamic pricing, is not just an option; it is a strategic imperative. As we conclude, it is evident that dynamic pricing is more than a trend; it is a responsive and agile approach to the evolving market. By adopting this strategy, hotels can optimize revenue streams, adapt to changing demand patterns, and stay competitive in an ever-shifting landscape. In the realm of revenue management, the ability to dynamically adjust pricing reflects a commitment to flexibility and innovation, ensuring that hotels not only weather industry changes but thrive in the face of them.

Revenue maximization from rooms and food and beverage is a given, looking at driving business from catering to corporate projects in the surroundings of properties, efficient usage of hotel spaces for commercial and events , a very close monitoring of the market to tailor make offerings based on the hotel availability , resources and as it is said by zig ziglar a gap in the market and a market in the gap .the rest has been nicely shared and covered in the article.

Dynamic pricing allows hotels to capitalize on fluctuations in demand and optimize pricing to maximize revenue potential. By leveraging real-time data and analytics, hotels can identify demand patterns, seasonal trends, and market conditions. This data-driven approach enables hotels to set flexible pricing strategies, resulting in higher revenue during peak periods and stimulating demand during off-peak periods. With dynamic pricing, hotels can effectively balance supply and demand dynamics while ensuring optimal revenue generation.

In the pursuit of maximizing room revenue, one must not overlook the importance of providing value for money. Guest engagement is paramount. Without it, guests may seek alternatives outside the hotel. Therefore, offering various amenities to keep guests engaged within the premises is crucial. Moreover, guests seek experiences, not just rooms and meals. By delivering enriching experiences and personalized service, hotels can justify higher prices and ensure guest satisfaction. In conclusion, alongside dynamic pricing, prioritizing guest engagement and exceptional experiences is essential for sustained revenue growth.

Tools are available and Ai is just brining it to the next level. OTA insight/Lighthouse, STR Marketforecast is giving travel intend/demand. This is all averaged and based on competitors. What if your competitors are old fashioned revenue managers? To make dynamic pricing work it requires demand. Key factor is how does the hotel/resort create the demand. Setting the hotel apart from the competitors is critical. One critical part to create the demand is experiences. They can share on their social media. What is new, what is different and unique. The other part to make the difference is the personable and memorable guest experience. Coach the team to customer obsession. Where do you get a personalised experience. Not just a transaction.

An often overlooked revenue stream are the fitness facilities. Travelers of today are looking for great fitness facilities similar to what they’re used to. With an educated customer, hotels have work to catch up and build fully functional fitness spaces, which offer best in class equipment and well designed spaces. The standard lists are outdated. A revenue worth chasing and keeping the customer in house.

This is currently where huge opportunity lies in hospitality to maximize revenue. While many of these components have been studied in isolation, there is little institutional knowledge on maximizing them together. The data analysis becomes harder and the conclusions convoluted without great effort and statistical expertise. There also are not tools to control of these functions. So inter-team collaboration is essential to implementing this in practice.

Moving away from packages to adding experiences or amenities like pre-booking early check ins, upgrades, certain high demand requests, F&B options, etc. for availability on all rate codes so guests can "make their own" package based on offers provided. This way, all departments can benefit if they want to have something loaded. Further, the guest will have more control on their trip - especially if budget conscious.

Wfrlee.com embodies Total Revenue Management by diversifying revenue streams beyond room bookings. The platform maximizes total revenue by offering ancillary services, loyalty programs, and flexible options like short stays and bidding. Integrated data analysis, operational efficiency, and strategic alignment underscore its commitment to a holistic revenue approach.

Total Revenue Management is a dream that will not wake up. We cannot combine top and bottom line due to different accounting and ownership levels. We do not have the talent to master all and above all: rooms rm is totally different to f&b rm to c&e rm to retail rm to any others.

In my experience, Technology can assist the Hospitality Industry, it reduces cost of Labour, waste, and ineffieciencies in the process. Most Nigerian Independent Hotels run thier hotels like a home, just getting things done. My recommendation will be 1. Just like a car, buy the best model you can afford. 2. Sign up for a service agreement to keep processes running. 3. Never share all the profits, retained earnings should be used for reinvestment. Revenue Management , or generating Revenue is keep the customers happy, ensuring the best guest experience to keep them coming back.

Why Customer-Centric Matters More Than Ever: 1- Changing Guest Expectations: Traditional Approach: Fixed offerings without much flexibility. Customer-Centric Shift: Tailoring services to individual preferences addresses the rising demand for personalized experiences. 2- Competitive Edge in the Digital Age: Traditional Approach: Relying on historical data, often missing real-time insights. Customer-Centric Shift: Embracing data-driven decision-making ensures agility, responsiveness, and a competitive edge in the digital landscape. 3-Building Lasting Relationships: Traditional Approach: Transactional, one-time interactions. Customer-Centric Shift: Focusing on customer relationships fosters loyalty, repeat business, and positive word-of-mouth.

Enhancements for guests to book on the booking engine are only offered on the website. Further, the revenue team gets the list of things to offer from the front desk, who has that constant feedback of what is most requested by the guests and what they want. We just have to listen and offer it. I like to make it as easy as possible for the guests to give me their money.

This should always be at the heart of rm. Anything else is short term thinking. You want to optimize over time, to add money is some form of another in the future- this might just be a referral from a customer to use your brand to a friend.

This is the way revenues should be managed. With proper branding, values come with promise and emotional attachment. This then creates guest experiential requirements that requires customization.

Technology will evolve. Interface will evolve. But will we have the people to know all those ? I doubt it. Advise for you: Emersion learning and application of learning. Tech and AI will evolve so fast that you need to learn to forget to make room for the next enhancement.

I have made my career as "the systems whisperer". I learn the innards of the system- how they connect, what information is shared, the pathways, etc. I learn what the system can and cannot do in as detailed as I can. Much through trial and error. By learning this, I can work "magic" with my offerings and how I build strategies. Further, once I have a PMS in place, I can get the system to do most of the heavy lifting for me, with some consistent review and tweaks, to allow me to maximize topline revenues. I love the AI aspect and utilize it wherever I can in my everyday so I can spend my time on the things that make the money so I am not busy with the tedious things that aren't generating revenue at all or in an effective way.

Technology is the way of the future, as Gen Z enters the luxury hotel segment, the experiential requirements of old goes changes dramatically. Room service is done by tablet/smart device, self check-in/out, digital payments; ultimately the need to be face to face with service unrequired. Check out Citizen M Hotels..... these are digital luxury-lifestyle hotels with later Millennials-GenZ targets in mind

Everyone agrees to reduce our CO2 output and be mindful on our resources. Recycle and manage waste. I do not see the direct impact or correlation between sustainability efforts and guest demand/purchase. A differentiator is when goverment policies are put in place… “From July 1, 2024, Australien Fed. Gov. employees will be required to consider the environment when booking travel and the principal measurements for assessing a hotel’s commitment to ESG practices will be via their NABERS rating.” Asia is much more behind in this aspect, my driver is to safe the planet and safe on bottom line. Lead by example and others will follow. Instead of plastic key cards, the bamboo key cards are same price. Pens out of bamboo are even cheaper!

Personalization and having a huge database about your guests and staying in touch with them professionally will keep a permanent source of revenue and it will be a channel of advertising as much as you succeed in delivering the expected service and when you exceed the guests' expectations then they will be one of your marketing tools.

In an industry where technology evolves rapidly, it’s vital for hospitality businesses to stay current. Rather than relying solely on past experiences, we must develop a routine to regularly update ourselves on tech trends. This isn’t just about catching the next wave; it’s about understanding how our customers’ interactions and expectations shift with new tech, both before and after they avail our services. Staying informed allows us to implement small yet impactful changes seamlessly. The goal is to integrate a habit of learning into our weekly rhythm, ensuring we’re not just up-to-date, but also proactively enhancing our business strategies to meet the ever-evolving market demands.

Here are 4 strategies every RM should implement immediately: 1. Build long lead transiemt base. Fish in a pond most don't pay attention to. Bookings will be slow but 1 per week for 25 weeks is 25 more rooms per day than your competitor. Price aggressively and fenced. 2. 360 degree upsell strategy. @UpsellGuru offer the best product on the market. Intercept all guests intelligently and appropriately at various stages of the journey. Easiest incremental revenue driver many RMs ignore. 3. Space optimization. Seek out unutilized spaces to convert into revenue drivers like a games room, a podcast studio, an ice cream shop, a coffee shop etc. 4. Sign up to No Room Wasted (NoRoomWasted.com) and open new and incremental revenue streams.

The future of hotel revenue management lies in the strategic use of data analytics. By leveraging data analysis, we enhance the accuracy and depth of our insights, uncovering vital patterns and trends. Machine learning algorithms are instrumental in understanding and predicting customer behavior, leading to more accurate forecasts. Furthermore, the integration of business intelligence tools ensures instant access to data, supporting swift, data-driven decision-making.

Some things to consider are; For success in Revenue Management all is relative, hence there being no golden rule. RM allows for various combinations that can lead to success. Smart analytics will help guide you there with the most sure bet path, customized for you. RM allows for a form of strategic creativity. With everything being relative, great data insights and technology are important tools to leverage. Enabling revenue managers to try new things, learn quickly, and know when to adapt strategies or tactics. The right benchmarks and data sources help set the right goals. Teamwork will make the dream work. Lastly, stay rational, try new things, and push the envelope.