Comment: The importance of revenue management systems for hotels
OTA Insight senior business development manager Wiebke Siemering talks about how hotels can use software to analyse supply and demand
For any hotelier chasing efficient revenue and distribution management, there are an array of technological solutions out there that cannot be ignored. Ranging from up-to-date and complete data on competitors’ prices and on your distribution channels; actionable insights from these vast banks of data; and unparalleled customer care.
All of these qualities are crucial for the most successful revenue and distribution management, and more and more hotels across the Middle East and beyond are signing up to benefit.
In 2012, the summer Olympics took place in London. Three Belgian sports fans travelled across the North Sea to spend a fortnight soaking up the atmosphere of the games in the British capital. But, with their commercial and data analytics hats on, they spotted what they considered to be anomalies in the prices advertised online for the hotels they were looking into.
In a nutshell, there seemed to be a mismatch in supply and demand, with hoteliers pricing their rooms much lower than they could have given the increased demand. Their theory was that if they had a better view on their competitors’ prices - both on their own channels (or Brand.com) and on online travel agents’ (OTAs) sites - they’d be in a better position to control their dynamic prices more effectively.
Hoteliers cannot go by in the industry without knowing what the competition is up to and knowing what their consumers are up to.
Rate Insight for example gives access to all relevant factors impacting demand for hotel rooms. Its users gain accurate live hotel rate intelligence by combining pricing, demand, reputation, benchmarking and OTB occupancy in a user-friendly dashboard.
Saving its users time, it shows their competitors’ current, past and future rates in an instant. Its flexible rate shopping benefits from customisable room-type mapping and parity monitoring, meaning its comparisons are meaningful. It also features events and ranking information. In short, it enables hoteliers to identify pricing opportunities. And it pinpoints where they’re losing valuable revenue by identifying parity issues on all key OTAs and metasearch channels, in real-time.
Software such as Parity Insight can track hotels’ parity performance, efficiently manage online partnerships and solve the right parity issues across OTAs and metasearch.
Hoteliers can gain more visibility and transparency with a range of business intelligence platforms, including Revenue Insight, which helps them effectively track and manage key factors including room nights, ADR and revenue, and combine these to better understand their main business drivers by interacting with market segments, channels, source markets, groups and corporate client data.
Hoteliers must ask themselves how their discounting strategies compare to the competition. Hoteliers must also consider whether they know their competition’s strategies. These and others like them are important questions, what with this year’s world Expo coming to Dubai, and the need to manage your inventory well in the lead-up to this landmark event for the region.
About the author
Wiebke Siemering is senior business development manager for the Middle East, Africa and the DACH region (Germany, Austria and Switzerland) at OTA Insight. She is responsible for engaging with local and global hospitality partners to help address their challenges by providing business intelligence tools and insights that can effectively integrate into their digital solutions landscape. Previously, Siemering worked at Radisson Hotel Group as online distribution area manager for the Middle East, Africa and Turkey, and also at Booking.com and Agoda, where she was market manager for hotels in the United Arab Emirates, helping hoteliers navigate distribution challenges and providing them with insight on how to win in a revenue management-based environment.