Three Ways Hotels Are Using 2024’s Revenue Management Innovations to Do More With Less

Hotel operations and revenue optimization efforts are getting easier across the industry—and they have to. Hoteliers have been investing in new technologies, adopting new operations strategies, and streamlining their business in a way that helps them do more with less during a period without excesses to rely on. Revenue management technology, in particular, is quickly becoming democratized across hospitality as hotels with resources big and small have increased access to revenue-boosting solutions.

The technology landscape in the hospitality industry continues to evolve, and the solutions available enable users to become more strategic—and worry less about tactical activities. Operators are confronting the challenges that come with doing more with less today, and they are coming out on top. According to the American Hotel & Lodging Association’s 2024 State of the Industry Report, U.S. hotel revenue per available room (RevPAR) was up 4.8 percent year-over-year, a 13-percent bump from 2019’s pre-pandemic highs. This is partly thanks to a growing reliance on revenue management tools to inform decision-making, which has been instrumental in helping hotels become more efficient while driving “better” revenue.

Here are three ways revenue management technology is helping hoteliers excel in today’s marketplace without sacrificing the bottom line:

1. Data Accessibility
The ability to access on-property data and share it between multiple departments has been an instrumental part of informing and supporting revenue management strategies. High-level and granular guest data has long been the domain of the revenue manager. Still, over the past few years, hospitality technology providers decided to break from this approach and give every stakeholder on property keys to the kingdom. By providing every department with access to the same tools, hotels increase the overall level of awareness and accountability on property while creating new efficiencies wherever possible.

Throughout the pandemic, many organizations suffered from a fragmented view of performance data that was further clouded by abnormal benchmarks for key performance indicators. Today, the data operators need is readily available and quickly analyzed by revenue management technology, opening properties up to a new world of business intelligence analytics. Since hoteliers can access the data they need to answer questions and formulate strategies, the process of planning and strategizing has been significantly simplified. 

Modern tools have provided departmental access to revenue management data for every department's benefit. When procurement and sales access the same accurate, up-to-date analytics as other hospitality decision-makers, they can make more reliable adjustments to current findings and directly influence a hotel’s profitability by reducing losses and prioritizing insights that enhance both the P&L and the overall guest experience.

2. Stronger Forecasting and Decision Making
Hoteliers must consider several factors when strategizing for 2024 and beyond, but what if the data they rely on is only sometimes descriptive or clear? Revenue management technology has become more dynamic, assisting operators with assessing performance more accurately so that appropriate decisions can be made confidently. The resulting strategic supporting activities are more easily supported with advanced forecasting, reporting and data visualization that can be efficiently socialized with all hotel leaders. 

Every operator’s goal over the past few years has been to measure upfront risk and mitigate it wherever possible. This is a comfortable and practical mindset in a challenging market, but operators must continue to advance their approach so that future opportunities are not constrained by overly conservative measures as travel picks up. 

Stronger forecasting, backed by more reliable data, allows hoteliers to better plan for long-term success rather than focusing on taking stopgap measures and settling for short-term rewards. While the short-term “survival skills” honed in recent years are certainly helpful, these approaches leave little room to stand out and take control of the business landscape with more ambitious, long-term plans. Hotels have the technology and tools today to avoid these pitfalls, but only if they embrace these measures today.

3. Faster Reactions
For many revenue management decisions, time is of the essence—and delays in reporting and analysis can come at a financial cost. Technology developers are striving to put data and revenue management tools directly in the hands of hospitality decision-makers, particularly operators, to expedite the process of reacting to new information. These investments help hoteliers lower their reaction times to essential stimuli, adjust rates, and connect with guests on the fly.

Data mobility remains a challenge in hospitality, and once departments sink their teeth into this wealth of data, inexperienced users can quickly become overwhelmed. Forecasts are becoming easier to create and faster to disseminate which allows all departments to glean valuable insights to better run their operations. The days of relying on one person to provide actionable data are long past. The on-property commercial team extends to all disciplines as each individual plays a critical role in the operation’s success. Being informed of any changes in demand in near real-time creates a seamless response loop that can be quickly deployed. These improvements make a difference in a hotel’s commercial strategy and help support operators’ ability to capture any revenue opportunities that arise.

Lastly, the minutia of hotel operations is quickly becoming automated. Hotels are discovering ways to streamline group pricing, helping them win valuable bookings faster and more consistently than their competitors when it matters most. Today’s technology is assisting leaders to avoid leaving any money (profit) on the table while benefitting guests by giving them more control and choice over their stay. Properties across the hotel industry are already doing more with less—and they are thriving.

ABOUT THE AUTHOR

Steve Green has been at IDeaS for six years in a variety of roles including Product Marketing, Account Management and his current role, Solutions Engineer. He has more than 25 years of hospitality experience in all sizes of operations, in both on-property and above-property roles—primarily in commercial functions. In addition, he is an advisory board member, frequent lecturer and adjunct instructor at the University of Wisconsin – Stout, School of Hospitality Leadership.