RevPAR Helps With Yield Management

As an important contemporary management practice, yield management helps hotels maximize profits and minimize expenses. Essentially, it guides the hotel to sell hotel rooms to the right customer, at the right price, at the right time. Hotel management should not price hotel rooms at discounted rates if it can be sold at rack rates the next day. Likewise, it is important not to price rooms at peak-season rates during the lean times because it will remain empty otherwise.

RevPAR Guru enables hotel revenue managers to increase hotel sales by letting them know when to price higher or lower and when. This inventory software and hotel revenue management software is the perfect assistant when it comes to generating hotel sales. Developing new strategies that fit with the times is possible with this automated software solution. In order to appreciate how RevPAR Guru works though, it might be a good idea to go back to the core of revenue management.

The creators of this application understand that each individual hotel has its own needs. After all, it has its own historical data about their customer’s stay frequency, length of stay, group statistics, number of meeting, and corporate clients that pay either the rack rate or the discounted rate. By using these data coupled with market information, competitive analysis, and accurate forecast, the future need not be a foggy environment.

Future demand can be predicted accurately. The positive and negative demand can also be integrated into the business model to provide the most effective results possible. This model can be updated real time depending on the trends in the market. For example, if an unexpected local event is scheduled in the near future, hotels in the area can increase their rates to increase RevPAR and improve hotel revenue.

Being aware of these happenings in the travel industry, RevPAR Guru is created with a flexible module that enables hotel revenue managers to make changes when appropriate. This hotel management software can also deal with unexpected cancellation, early check-out, additional demand, no-shows, and a variety of other instances that are subject to human preference. As a result, hotels that use RevPAR Guru as their software can expect additional hotel sales and profit optimization.

Focusing on Increasing Hotel Sales

Sales forecast is not something that most hotel revenue managers want to focus on. But this is an essential element to consider because it will affect the company’s strategy, hotel rate positioning, and pricing strategies among others. Every start of the year, most people look back at what happened the previous year. And for the new strategy to be successful, it is critical to know what worked and what didn’t in the previous years and how these can be improved upon in the next year. In addition, hotel revenue managers should not only lay out the forecast and stick to it stubbornly. It is sometimes wise to consider the current market condition to change the hotel rate strategy appropriately.

After this step, the next one is implementation. This is where more problems start to occur. Many hotel revenue managers say that they have a problem about “time management”. They take unnecessary calls that could have been left to the secretary to answer. They welcome interruptions from different people within the hotel. And they spend too much time in redesigning work flow and other systems. While this initiative may be necessary, it is the task of the hotelier to know which area should be prioritized.

In truth, most revenue managers don’t have an issue with time management; they have sufficient organizational skills to manage their time effectively. Their main concern should be their lack of focus. Focus is different from management. It is not about organization but about prioritization. The organization with streamlined operations may not experience profit optimization if it is targeting the wrong market. In the same way, managers who put their time and effort into unproductive undertaking will yield no tangible results.

Fortunately, there are things that can help hoteliers and staff keep their focus on the right things. Among the steps they can take include:

Analyzing Daily Activity – writing down the activity of the day and then analyzing it will determine how productive the hotel revenue manager is. This will help them identify which tasks needs to be eliminated and which should be placed at the top of the list.

Prioritized Identified Areas – once the critical aspects of operations have been identified, the next step is to know which proposals, contracts, or any other tasks should be done for the day.

Reduce Interruptions – one of the things that make a person less productive is distractions. By eliminating interruptions and other unnecessary tasks, the main priority can be finished during the day or during the specified timeframe.

Integrating Revenue Drivers to Optimize Hotel Sales

Summer is usually the peak season for most hotels. But due to the economic climate today, hotel revenue managers are definitely expecting that hotel sales will not be as great as before. However, the fact remains that this is the most important time to maximize hotel profits. If this isn’t achieved during this season, hotels will have a difficult time meeting their sales target for the year. To achieve this, it is important to implement good revenue management.

Currently, customers are wiser than they used to be. They know how to look at the elements of their accommodation including location, hotel choice, facilities, and brand. It is important to get into the customer’s mind in order to provide the best service to them. Take note that revenue management can mean different things to different managers.

Basically though, the main aim of hotel revenue management is to increase RevPAR. Most have a pretty clear idea of how an increase in RevPAR can be achieved. However, based on data and consultations, many hotel revenue managers seem to lack coordination with their revenue drivers. These drivers include central reservation, hotel electronic distribution channels, sales department, and online sales. Overall, it provides the revenue for the entire organization.

One of the main concerns that a lot of hotel revenue managers expressed in many consultations is that they are unaware of the rate changes in their own hotels, specifically those that are posted in electronic distribution channels. Sometimes, it becomes too high that attendees from certain meetings have to book elsewhere instead of going for the group block. At other times, the rate posted is lower compared to what the hotels negotiated with third parties.

To avoid these problems, it is important to collaborate within all levels of the distribution channels and at all levels of the organization. This process will ensure continuity. Below are some tips that will help you do just that:

Product Positioning – it mainly involves the rate that will be charged for group bookings, competitive set, and reservations among others. It will need to be adjusted so monitoring the franchise yield management software is critical.

Look over Contracts – all existing and forecasted contracts should be analyzed. Everything from volume contracts with wholesalers, group contracts, and other obligations should be based on the rate structure. This should be determined by both the sales and revenue management department.

Online Presence – right now, many are finding their hotels through the search engines and hotel electronic sales channels. For a hotel property to increase hotel sales, they should look into these channels seriously.

Simple Ways to Increase Hotel Internet Sales Part 2

If you want to increase your hotel’s internet sales, it is important to allocate a significant amount of resources into internet marketing as well. Right now, it is believed that all major hotel brands are already generating more than 40 percent of their bookings through their hotel internet channels. By 2010, it is projected that 45 percent of bookings will be completed using internet booking software. Before you invest a significant amount of money in your online endeavors though, it is critical to know which areas and channels you need to focus on:

Paid Search Campaigns

Investing in search engine optimization (SEO) may be a good idea, but it takes time before results start to trickle in. An alternative to this is the pay per click campaign. Popular programs include Google AdWords and Yahoo Search Marketing. This program is worth considering for the hotel industry because it significantly improves web visibility. PPC is a particularly beneficial program while you’re waiting for your site to increase in ranking.

After your hotel website builds a good reputation, you can gradually stop this campaign. Some people use this as a replacement. However, it is never a good idea to use this over the long-term because of the extensive investment involved in order to sustain it. In addition, searchers are more inclined to trust search engine results instead of paid results. This will translate to better hotel revenue management on your bottom line.

Packages and Promotions

Just because you’re marketing your services online doesn’t mean you need to give up on offline marketing strategies altogether. Find out what packages click with your target audience and include it in your online service offerings. If people are booking your hotel because of its good location, free breakfast, corporate amenities, and scenic views, be sure to mention it on different hotel distribution channels including the internet.

User Generated Content

Some of the most successful websites today rely on users to generate its content. For example, video sharing sites, P2P, Wikipedia, and even YouTube depends on thousands of users to create and patronize its services. The same concept holds true in the hospitality industry. For example, social media sites can be very helpful in boosting hotel profitability. This is because people generally trust the opinions of others within their network; when their friends give reviews, they listen. In addition, travel-centric media sites that offer reviews are used by countless people when making purchase decisions.

Simple Ways to Increase Hotel Internet Sales Part 1

A decade ago, hotel revenue managers would never have thought that the internet will become the most important hotel distribution channel worldwide. In 2008, 37 to 38 percent of all hotel bookings are believed to have come from the internet. Aside from this, at least another third of hotel sales are influenced by online mediums although the actual reservation is done offline. For example, bookings done through walk-ins, call centers, and travel agencies are influenced, by a large part, by what people see and read online. It is not surprising then that certain hotels were able to cope with the tough times and even increase their hotel internet sales despite the tough times.

Creating and Updating Hotel Websites

Hotel internet marketing revolves around the main hotel website. It should be the first thing that a hotel revenue manager focuses on. In many cases, it is either the first contact or the last contact a company makes with the customer. It is important that the hotel’s website be a top priority especially since the market for hotel online sales is huge. The main objective would be to create an appealing overall image of the amenities.

A lot of hoteliers make the mistake of becoming contented with the same website they had five years ago. Time has changed drastically since then. Now, it is essential to have striking graphic design, internet hotel reservation software, real time information on prices, and booking software among others. If promoted properly, this can be a significant amount of business to the establishment.

Search Engine Optimization

Every person who has tried their hand in online promotions knows the importance of search engines. Majority of web traffic will come from search engines because this is the first tool people look into when trying to find information, product, or services on the internet. By SEO, it doesn’t mean that using popular key phrases on the content is enough.

Instead, a full-fledged campaign that involves link building, search engine submissions, and content optimization should be used. This is the best way to increase internet sales for your hotel. If you decide to hire a SEO specialist or an agency for this campaign, make sure you get those who have actual experience and knowledge about hotel revenue management.

The problem with most SEO companies in the market is that they have the tendency to focus merely on increasing traffic with no regards to its relevancy to the hotel. The result is low conversion rate and a lot of wasted money. Looking for someone with hotel industry knowledge is important.

Measuring Weekly Hotel Performance

It is no secret that the hospitality industry has been struggling in different fronts ever since the global economic crisis occurred. To get an accurate overview of the condition in the United States today, performance measurements for the week March 15-21 has been conducted. Metrics per month and per quarter are very helpful in determining financial performance, but this weekly year-on-year comparison provides a better overview of the real effects of the tough times.

Using this measurement, all three key measurements declined according to the STR. The occupancy rate fell by 4.7 percent, average daily rate declined 8.0 percent, and revenue per available room dropped to 12.3 percent this week. The average daily rate is now pegged at US$99092 while RevPAR is at $US58.45. If this is not alarming already, all major cities except for Washington DC showed declining performance during this timeframe.

Washington, DC was the only market that increased on its key performance measurements. However, even that increase is on the low side of the scale. Occupancy was 69 percent which is 1.7 percent. Meanwhile ADR was pegged at US$152.91 which is up 0.9 percent. And the RevPAR of the city increased to US$105.46 which is up 2.6 percent from last year.

Seeing that the United States is a very diverse market, its remaining top 25 cities showed mixed rates. For example, St. Louis, Illinois showed an increase in occupancy while Houston, Texas declined by 1.3 percent. One notable decrease is that from New York, New York. It dropped 25.5 percent in its ADR which is the largest in the research. The city also posted the largest RevPAR decrease because it dropped 36.6 percent to only US$151.05.

Given these severe setbacks in the hospitality industry, hotel revenue managers might wonder, is there still hope in increasing hotel sales in the next few months? The truth is, the condition today is one of the worst in history. In fact, economic performance has not been this bad since the Great Depression.

Yet, it is important to realize that the conditions from the previous eras are far different from the conditions today. Now, it is possible to use inventory software, hotel revenue management software, and internet marketing to reach a larger audience: a worldwide audience. With this fact in mind, the answer is yes. It is possible to increase RevPAR and boost hotel sales even during difficult economic times.

Increase Hotel Sales by Using RevPAR Guru

Despite the amount of sophisticated technology available today, a lot of hotels are still suffering from manual processing, and poor information flow. They fail to get updated and real-time information about guest, inventory levels, and industry data. This leads to reduced revenue and has a severe impact on hotel profitability. In today’s economic condition when the industry is struggling just to break-even, it is critical to utilize all available tools to improve RevPAR and boost hotel sales.

Among some of the most common mistake that a hotel revenue managers can make include focusing too much on administrative processes instead of sales, unreliable information flow among hotel distribution channels, lack of leads about sales statistics, redundant systems and infrastructure, and inflexible systems that cannot support new hotel rate strategies and new technologies.

Requirements of Hotel Revenue Management Software

• User-friendly interface
• Real time inventory information
• Modular structure
• Integrated technology elements including channel management, revenue management, account management, business management, and contact management
• Solid technology platform
• Data accuracy

These elements are very useful in when it comes to hotel management. It helps streamline processes, improve efficiency, and most importantly, increase hotel revenue.

RevPAR Guru: Solving your Problems in Real Time

With all these challenges, it is a good thing that a software application such as the RevPAR Guru exists to help hoteliers. It is a revenue management software, hotel booking software, and hotel management systems software combined into one. It is quick and easy to implement. With the right utilization, it can show a significant improvement on hotel sales.

It is critical to choose an application that has been specifically designed for hotel revenue management. There are many software solutions available but only a few of them can actually meet the unique needs of a hospitality business. It is true that certain technologies can be “modified” to adapt to the hotel’s requirements. However, it is very expensive and in some cases, it is not flexible enough to meet ongoing improvements. The RevPAR Guru is different because it understands all the challenges of the business. All functions are designed to deliver effective yield management and profit optimization.

It is not surprising that a lot of hotel revenue managers are turning to RevPAR Guru to help them cope with the changing times. The software application is very useful in both good economic conditions and bad.

Increase RevPAR by Improving Performance

Revenue per available room (RevPAR) is an undeniably an important factor in increasing hotel sales and boosting profitability overall. However, in some cases, it is also critical to look at other factors that might affect performance. Decisions surrounding the hotel size, long-term strategy, and service orientation all play a role in the hotel’s profitability. Take note that aside from RevPAR, another metric of the hotel’s financial health s performance. When times are lean, hotel revenue managers need to improve operational processes in order to enhance hotel profitability.

On the other hand, performance is also essential during the good times. It can be used as a tool for profit optimization. Effective hotel rate distribution, rate strategies, and the use of forecasting and inventory software are all helpful in ensuring the best results possible. Sometimes, certain hotel chains even take over their competitors in order to experience economies of scale through productivity gains.
There is no doubt that once hotel revenue managers understand how important productivity, RevPAR will increase. These two elements complement, rather than contradict, each other. But many make the mistake of concentrating on one but not the other. The balance between occupancy rate and hotel room rate can be categorized as RevPAR, it basically shows the income of the hotel. Meanwhile, performance and efficiency has more to do with controlling costs.

Hotels are generally labor-intensive but it does not necessarily mean that hotel revenue managers should allow the property to lose money just to keep up the current level of service. Improving efficiency may be a challenge but it is definitely possible to achieve. Today’s hoteliers find today’s condition particularly difficult though because there are too many rooms that are left unoccupied while fixed labor costs still remain.

Fortunately, there are tools like RevPAR Guru. This software application provides real time information about historical data, occupancy levels, and available amount of rooms. Good decisions can be made in real time. Prices can be adjusted according to actual demand and supply while unnecessary costs are eliminated through the use of this accurate forecasting software. It is not surprising that a lot of hoteliers are looking into this software for a solution. In tough economic times, there is no room for error. Basing your decisions on facts, and not guesswork, is your best bet in surviving the current downturn in the hotel industry.

Social Media for the Hotel Industry

With the large number of Web 2.0 websites these days, it is not surprising that a lot of people are spending a lot of time online. Social media and sites that focus on consumer-generated content get a lot of buzz because it goes beyond traditional business to consumer interaction. Nowadays, people can interact among their peers and other users to get the best information possible. In addition, the social media creates networked connections and one-on-one relationships among people. Significant events, current developments, and interesting trivia are shared “virally”.

To cope up with these changes, the hospitality industry needs to know where and how to concentrate their efforts. Market research is required. For example, it is critical for hotel revenue managers to identify where their target consumers usually spend their time only and then focus on these websites. According to hospitality experts, hotels face a challenge of reaching out to consumers that use these media. If they are successful, not only will they retain their current market share, they develop new markets as well.

Essentially, it is important for hotel revenue managers to realize that utilizing social media is almost free. But it requires a lot of effort, promotions, and marketing. Building connections and being with the community is two of the most important factors to increase hotel sales. Profit optimization can only occur when hotels understand how leveraging works online. Web 2.0 technologies enables them to build brand awareness and consumer loyalty through proactive endeavors that boosts profitability.

It has been said that careful targeting and the consistent delivery of relevant messages is the key to successfully using these tools. Together with market research and marketing though, it is also critical for hotels to implement the most effective hotel rate distribution strategy to increase hotel electronic sales. Some tools that will help include forecasting software, price distribution software, and inventory software.

In addition, utilizing search engine optimization and search engine marketing techniques are also essential in these endeavors. Nowadays, there are a lot of web marketing applications that has been designed to improve traffic and brand recognition. The software can also be used for other industries aside from the hospitality industry. This is because the necessity of adapting to new technologies is not only apparent in hotels but in the overall business environment as well.