For the modern hotel owner or chief operating officer (COO) relying on hearsay and fragmented reports of what’s happening across their chain or hotel is no longer good enough. They know that next-generation revenue management relies on being able to make informed, strategic decisions quickly.
Yet, for many hotel owners and COOs around the globe, the reality is that they only ever see part of the picture. Constrained by siloed data stored in separate systems and spreadsheets and reliant on historic reports from their General Managers, Revenue Managers, and Sales & Marketing teams the decision-making process can be sluggish and slow to respond to opportunities.
To gain the competitive edge, grow net RevPAR and the bottom line, today’s owners and COOs recognize the need to foster a data-driven culture across all teams in order to improve performance and enhance forecasting. But, how do they achieve that?
Combining the right technology with the right mindset.
Finding the right platform that will provide hotel owners and their teams with a complete view of what’s happening across the business is one half of the solution.
Business intelligence (BI) technology is providing hotels with a cost-effective and more complete alternative to revenue management systems (RMS) but for hotels to make the most of these new insights, implementing new technology needs to be combined with a change management approach. All too often these are viewed as IT projects and that’s where they come unstuck.
Encouraging a change in attitude towards data sharing and aligning teams around the platform will deliver the most effective and sustainable improvements. Teams will have clear direction on the step they need to take to improve performance in their areas and will have a better understanding of how their actions impact the rest of the hotel – leading to increased collaboration and sharing of insights.
As, Ðekic & Mladenovic-Ranisavljevic found in their 2010 study, “…the use of analytics and information should be part of an organization’s culture and senior management should believe in and drive the use of information technology…”
This takes time and needs support from senior leaders within the hotel for it to be successful. Without the right level of training and coaching to help teams understand why a greater focus on the data will deliver benefits for everyone and how they achieve that, members are likely to become frustrated and disengaged. Only with proactive buy-in at all levels will the power of the data’s insights be truly realized.
Choosing the right technology support your revenue growth.
One of the first steps that owners often consider is whether to hire a revenue consultant or invest in an RMS. While both options have their advantages and disadvantages, new business intelligence tools are providing a third cost-efficient option.
The advantage that RMS has over revenue managers is the features that gather and store data. An RMS can extract data from a property management system or central reservation system on a real-time basis.
This data contains historical and future data that can be used in the calculations that provide forecasting, inventory controls, and pricing decisions. An example of historical data would be the previous year’s data on occupancy for a hotel while future data would be the number of reservations on hand for a date in the future. RMS software analyzes enormous amounts of historical and future data to provide useful forecasts and pricing recommendations.
Revenue Intelligence is the next generation of revenue management
Revenue Intelligence tools are now offering a more cost-effective and user-friendly alternative to an RMS. By combining similar feeds to RMS plus additional feeds such as Google Analytics, pick-up reports, food and beverage into one highly visualized dashboard, teams finally have access to a single source of truth for their hotel’s performance.
What’s more, unlike an RMS, a Revenue Intelligence tool is less disruptive to implement.
An RMS implementation involves more hardware and software than its cloud-based Revenue Intelligence alternative.
With a Revenue Intelligence solution, hotel owners and their COO counterparts have all the information they need within a few clicks. Easy to interpret dashboards to enable them to slice and dice real-time data as they need it. They no longer have to wait for reports to land on their desk and then spend time combining the data to give them the insights they need.
Their time is freed up to focus on the hotel’s strategic priorities, identifying opportunities to optimise team performance across all departments and building a data-driven workforce from the top down.
In this way, guest experience can be enhanced from the very moment they come into contact with the brand – increasing booking rates and building loyalty, greater revenue opportunities can be identified, and margins can be strengthened.
Combining the right technology with the right culture and support to take action on the data’s insights hotels to be in the strongest position possible for growth and success.
Learn more about FornovaRI. Request a demo here.