FRANKFURT, Germany, January 20, 2016 /PRNewswire/ --
Today, even basic revenue management has assumed an overriding importance in the hotel industry. Understanding the business, segmenting it appropriately and, therefore, forecasting demand accurately will lead to optimal pricing and more profitability.
Best-available-rate pricing has been at the core of traditional revenue management for years, but with the advent of new channels, it has now become antiquated. Today, hotel revenue management has to be even more dynamic and flexible in terms of price structure. In fact, a more appropriate term for the discipline is Revenue Strategy, which allows hotels a more flexible way of thinking to optimize revenue and manage a complex distribution - encompassing the integration of revenue management, data analytics, distribution, digital marketing, loyalty marketing, sales, reputation management and technology.
A new approach called Open Pricing makes it possible to price all room types, channels and dates independently of each other to maximise revenue without having to close any off. Instead of rates all moving in lockstep with best-available-rate pricing, hotels can price all rooms across all channels every day based on actual demand. Moreover, the rise of the online travel behaviour and user generated content have become major decision factors for customers and thus the correct combination of pricing and online reputation has also become crucial for hotels.
"Hoteliers need to reshape revenue strategies to align sales, marketing, revenue management and operational teams, while working with the appropriate technology to better leverage their products and make Open Pricing strategies a reality," says Torsten Rolke, Vice President - Hotel Distribution & Business Performances at Worldhotels. Patrick Bosworth, Co-Founder and CEO of Duetto adds, "The pace of change in the marketplace is accelerating ever more quickly, and advanced revenue strategy solutions bring flexibility to fully optimize revenue and manage distribution complexity. Smart operators are increasingly, and rapidly, adopting such solutions."
To stay ahead of the curve, Worldhotels recently partnered with Duetto, the leader, innovator and champion of Open Pricing and the market leader in hotel profit optimisation technology. Through this global partnership, Worldhotels is bringing new insights on pricing and demand to its hotels and enabling them to optimize bookings and make better business-mix decisions with superior, actionable data.
The future is indeed now, for hotels that wish to maximize revenues and optimize price through forward-thinking technology and innovation.