It would be interesting to compile a list with the tools that a revenue manager should have his disposal. Let’s call it the ultimate Hotel Revenue Management Toolkit. We have done some digging through our revenue management excel spreadsheets reports, yield tools, systems and technology and came up with quite an extensive list of tools and gadgets a revenue managers requires to do his job well.
I can’t even begin to count the number of times I have heard hoteliers mention in our revenue management seminars that they need to get more direct business, preferably through their own hotel website. Of course this is something we all want for our hotels. We all well know that direct-sales brings a higher margin to the bottom line, than reservations through commissionable third party distributors like OTA or low net rate wholesalers and tour operators. But then why are so many hotel websites still static?
We're on a mission to help you select the best channel manager available for you, let's continue. We have covered a number of general system selection criteria in the last release. Due to the important role of channel management within hotel revenue management, we’ll now have a detailed look at rate management, inventory management and security related matters. We'll continue from where we stopped last time, with your price strategy.
At Xotels we see a big shift in hotels looking to move to a high quality channel management tool in order to replace some of the tools they are currently working with. Channel management has become an understanding to every hotelier and it is becoming mature. 1000’s of hotels around the world have used channel management tools on a daily basis for years. Step by step the hotel industry is starting to realize that it requires best of breed tools as part of a solid hotel revenue management operation.
Over the last few months Xotels has uncovered hidden revenue potential for the Design Hotel Secret the Paris. Within 6 months of taking on the revenue management strategies for this unique boutique hotel, results have increased with more than 10%. This great success story demonstrates the importance of excellent guest service and online reputation for revenue management.
Traditionally hotel asset management has been focused on operations and cost control. Over the last few years we have seen a clear shift in revenue management getting a more prominent role. Profitability is not only a result of cost control but also revenue generation. Finally we also see sales and marketing become a key area for the by hotel asset manager.