It is no secret that the coronavirus pandemic reshaped the travel and tourism industry. Many hotels were forced to evolve and smarten up how they set their room rates to survive, and those that did have reaped the rewards.
In a webinar hosted by RoomRaccoon, an all-in-one hotel management system, and RoomPriceGenie, the companies explored how the pandemic catalyzed the adoption of revenue management tools amongst independent accommodation owners to become more competitive in challenging times.
Like much of the sector, Revenue Management experienced unprecedented upheaval due to the pandemic. The legacy software that looked at historical data quickly became obsolete. However, Revenue Management has re-emerged with a new set of future-focused processes and is a critical component of a property’s failure and success in challenging times.
According to Marvin Speh, COOand co-founder of RoomPriceGenie, the adoption of Revenue Management Systems before the pandemic was slow. Not only were legacy systems costly, but they were also complicated and exclusively used by large hotel chains that had the capital to invest in a full-time Revenue Manager. As a result, more than 95% of hotels, particularly small independent properties, did not manipulate their prices.
As open API technology evolved, cloud-based revenue management tools became more accessible. However, the pandemic was the true catalyst for the adoption of hotel revenue management tools. This evolution opened the doors for independent accommodations to use dynamic pricing strategies and increase revenue in challenging times.
“People were more open to technology helping them with their pricing because.. it was a much more competitive market than ever before… And they realized that they don’t have the time and capacity to do it manually, so they need technology to help,” shares Speh.
“We are all about empowering hoteliers around the globe,” shared Nick Kleynhans, Head of Partnerships at RoomRaccoon. “By adopting automated revenue management tools, independent hotel managers who might already be short of staff due to the pandemic are freed from tedious pricing manipulation tasks and can return to fulfilling client-facing responsibilities.”
Speh concluded the webinar with three quick pricing strategies that smaller properties can implement to see instant results. The first strategy is not to be afraid to charge more. The second is to understand your market by studying direct competitors. And the third is to look beyond direct competitors to large hotels that employ revenue managers in order to benefit from their pricing strategies.
Sign up for the webinar here: https://offer.roomraccoon.co.uk/RPG-webinar