Contributed by Nicole Adair, Director of RM Services, SHR
Almost half of all OTA bookings are now done via mobile devices?
Travel apps and booking channels have exploded while booking windows have become shorter.
Add it all up and what have you got?
The perfect storm for more uncertainty in forecasting and budgeting for revenue managers. Luckily, you can fix this situation, but only if you know how to work things the right way.
Here are the highlights:
(Listen to the full webinar recording for some really fun anecdotes from our own hotel experiences!)
Budgeting—Are You Looking at the Right Information?
You can’t arrive at the right answers without asking the right questions, right? (Don’t answer that one.)
We’re talking about tough questions, like;
What new inventory is there in the market?
Which existing inventory has been renovated?
What special events happened this year that won't repeat next year, and vice versa?
Have any major business campuses or venues opened or closed?
And Then There’s the Travel App Explosion
Like I said in the beginning, it’s shocking how apps have and continue to explode in number and frequency of use. It may sound unbelievable, but…
80% of travelers in the U.S. are now searching for trips using their apps, even when the actual booking is made elsewhere. But believe it.
#1 When apps make it harder to forecast:
#2 When guests expect lower rates closer to the arrival date:
#3 If when you drop rates, those who booked early want the discounted rate:
Making friends with AI is smart for so many reasons, and contrary to what you may have heard, it really will NOT take over your job. What it WILL do, however, if you use it right, is help automate manual tasks that take up your time. Also, it can help you handle day-to-day adjustments, and ultimately allow you, as the revenue leader we know you are, to focus on big picture strategy and manage by exception.
This chart shows who is actually using RM tech. Surprising, isn’t it?
Key Takeaways You Can Start Working on Now
They say the best strategies come from devoting enough time upfront to planning. When it comes to revenue management, it couldn’t be any truer.
To get you started off right, here are three do’s and a don’t:
So, get going, and start planning your revenue takeover today. You’ll be glad you did!