According to the latest performance reports, Indian hotel market is experiencing exponential growth. So, you need to be prepared to respond to this positive change by equipping yourself with strategy to increase hotel revenue.

Hotels Revenue management strategy should be such that it looks at business from both outside in and inside out angles. You need to focus on the tips given below to draft an excellent strategy.

Hotel Revenue Management

Understand your market: Try to find out who exactly are your competitors and demand drivers as they will have a considerable impact on your revenue management strategy. Start from the basic aspects of when your business started including location demographics, corporate players, transport links, local development, seasonality, event demand, tour operators etc.

Armed with this information, you will be able to know target market, demand patterns, commercial opportunities and challenges. These you can address while designing your strategy.

Know your competition: Remember, your hotel strategy decisions and critical pricing are dependent on the performance of your hotel in comparison to your competitor hotels. You have to be ready for different competitor sets who are classified according to different seasons, mid-week vs. weekend, mid-scale hotel, 4-star hotel, immediate locale etc. For better preparedness, you can always hire a Hospitality Management Consultant.

Act like a customer: Even if you have set a rational and strong pricing, you can’t convert potential customers, if they are not able to find you or book you. To know from a customer point of view, you need to think and book like a customer. So, its crucial how your hotel management strategy is seen and purchased by customers. You can find out this by conducting an online and mobile research. Design your strategy based on the results of the survey.

Know your product thoroughly: Your hotels revenue management strategy should be based on a thorough knowledge about your product. You might be having a great product but your competitors are also boasting of their products. So, take help of a Hospitality Management Consultant to make the most of your product.

Teamwork: You need to design an effective strategic approach keeping in mind all the areas like e-commerce, marketing, sales and distribution. This approach will make certain that the customer gets the right message.

Once you adhere to all these tips, you will always come up with a sound revenue management strategy for your hotel.

Spa Treatment

We have to admit that our lives have become a lot more hectic that it was a few decades before. People often head towards tourist places for breaking the monotony of their lives and start again with a renewed vigor. As most of these trips are aimed towards seeking solace and peace, wellness tourism has found a boost. Hospitality consultants are helping the hoteliers create a space that is perfect for the wellness needs of the guests. 

Wellness tourism is a trip with a purpose of achieving health and well-being through spiritual, physical and psychological activities. The guests are no longer satisfied with a resort that merely offers great rooms and amazing delicacies. They wish to indulge in spa treatments, fitness classes and want their entire experience to be filled with wellness and that too tailored to their preferences.

In order to cater to the guests who are on a wellness trip, the hotels and resorts are transforming themselves to become a health and wellness destination in itself. The guests who check into the hotel do not have to go scouting for the wellness centers all over the city.

Yoga

Let us see how a resort can be evolved to cater wellness travelers:

Wellness-themed Accommodation

Hotels and resorts that have not been built around the concept of health and wellness are beginning to transform some of their rooms with fitness facilities. They are equipping the room with small treadmills, cycle, meditation rooms, yoga mats and access to spa and wellness therapists right in their rooms. The hotels are even tying up with Spa brands and offering their services in their property. Some big brands are even offering Vitamin C infused shower to the guests.

Amenities Linked To Health And Well-Being

Apart from making a few wellness-themed rooms, the hoteliers can add some amenities that can help the guests make the most of their wellness trip. These amenities may include spas, fitness centers, ayurvedic toiletries, detox water, energizing snacks, cycling around the resort and a lot more. Even the minibars can have healthier options in their menu.

Lighting And Quality Of Air

If you wish to have guest fully satisfied during their stay, you need to be very particular about things like lighting and air quality. Guests often get sick after returning from a hotel because of allergy reaction they may contract due to poor air quality. The hoteliers must ensure that enough number of air purifiers are installed in the property and guests get to breathe fresh air. Also, the lighting should be soothing to the eyes. Lighting experts can come in handy for ensuring this.

Bespoke Facilities

Apart from all the amenities that the resorts offer as the standard package, the scope for customized services should always be there. Guests who are on a wellness trip may have some specific demands, for instance, a special spa therapy. In order to offer better services, the hotels can also ask the guests about their preferences at the time of booking.

Wellness tourism is catching up big time and the hotels should prepare themselves to cater such guests. These pointers may help the hoteliers take the initiatives.

Hotels Automated Apps

A series of daily operations are required to be managed every day in an independent hotel. A manual system of doing so not only takes up valuable time and energy of the staff but also diverts the focus off important areas. If you are storing the guests’ requests on excel sheets, manually checking the bookings, cancellations, check-ins, and check-outs, it’s time that you switch to automated operations to make the most of the resources you have. There are a lot of hotel management consultants who can help you with such solutions.

We have enlisted some compelling reasons to use hotel management systems to automate your hotel’s operations and assets management:

Operational Control

  1. Get more work done with less capital

An on-premise hotel management solution to automate your operations can be very costly. It requires you to set up hardware, IT infrastructure, expensive software licenses and a lot of other overheads. On the other hand, a cloud-based hotel management system just requires a computer with active internet connection. As the maintenance is provided by the vendor, a dedicated IT department and developers are also not required, thus lowering the capital investment substantially. Revenue generation can be accelerated substantially with these solutions.

  1. Can be accessed anywhere anytime

The best part of a cloud-based hotel management system is that it can be accessed anytime from anywhere by the authorized person. In case of small independent hotels where there is a single point of contact for multiple tasks, an automated operations manager solution changes the way the hotel is run and managed. The operations of the hotel can be managed from anywhere on any device, making everything more efficient.

  1. Guest interaction can be improved

As a hotelier, you can expect your guests return to your hotel only when you offer them a memorable experience. The process of collecting valuable feedback from the guests and converting them into actionable information as well as sending follow-up mails etc. are quite tedious. Having a hotel management system lets you send automated response to the guests and even asking their preferences and special requests.  This helps create a strong relationship between the guests and the hoteliers.

  1. Better Analysis and Reporting

Unless you prepare reports and analyze your hotel’s performance, you will not to be able to make much improvement. With an automated operation management solutions, making accurate reports become quite easy. Hence, you can get analyze better and take informed decisions rather than making hit and trials.

  1. Flexibility in payment

The cloud-based hotel management systems lets you pay-as-you-go. There are plans available for subscription which are also quite flexible. The overheads such as setting up IT infrastructure is completely done away with.

The advantages mentioned here are just the tip of the iceberg. There are lots of benefits that can be extracted out of a cloud-based hotel management once you get it customized for your hotel or resort.

If you are planning to open a new hotel, there are a few things that you need to be careful about, keeping the new hospitality industry trends in mind. When you enter into the hospitality industry with a new hotel, you have to face a lot of challenge. The pre-opening phase of the hotel is quite demanding in terms of planning. Although you can hire expert hotel consultants, you still need to adopt an effective prioritization strategy to chart a hotel pre-opening road map. Several factors such as marketing and distribution are required to be planned in advance. In the course of such planning, you may also face many roadblocks as well.

hotel pre-opening

The tips given here will help you anticipate such roadblocks and face them.

Right Promotion Is Important
The promotion for your property should ideally begin before it has been opened to the public. This will create the right buzz about the hotel. The promotional strategy should include social media channels as well because a large part of traffic comes from there. Digital media agencies can be hired for the promotion.

Hospitality Consultants
Unless you have extensive knowledge of how the hospitality industry runs, you should not solely rely on your own instincts. Hiring a reputed hotel consultant can give you the added expertise to go about the opening of the hotel. These consultants take care of all the factors that are required for the opening of a hotel.

Use of Technology
You must not shy away from using technology when it comes to running the business. Whether it is the booking or the operations, latest technologies can help you manage things efficiently, thus reducing the dependence on manpower. Solutions like hotel management system are quite useful in handling different processes of a hotel, Before opening a new hotel, you must choose such a solution that is best for your property.

Efficient Point Of Sale
With several points of sale for a hotel such as online travel agencies (OTA’s), travel agents, websites and mobile apps, you must be very clear about how aggressively you wish to sell your rooms. If the budget is low, you should start with only the OTAs and then move to website and apps. The deal with different agencies must be fixed before you open the hotel so that guests can start to book as soon as the hotel is started.

Sound Revenue Management
The revenue management should be handled by expert and skilled personnel. All the ancillary revenue streams should be carefully implemented with revenue management plans. A demand calendar should be prepared to track the market segment in terms of pricing strategies, segment strategies, and others.

With a lot of hospitality consultants around, it has become easy to devise the strategy for opening a hotel. However, you need to be prepared for the challenges that might your way. These tips will help you take on the challenges with a more informed approach.

With the emergence of advanced technologies that help the hoteliers analyze their performance, the hotel asset management has gone through a lot of transformation. It has become more diverse and detailed. The management is differentiated into the post and pre-opening phase and each phase has its own set of activities to be performed. As most processes have become automated these days, the workforce can access a lot of resources on the move and make informed and accurate predictions and decisions.

Hotel Asset Management.

The Elements of Evolution of Hotel Asset Management

Better Analysis With The Help Of Technologies:
The hotels have now understood the importance of analysis of the different type of data about the assets that they possess. They are now hiring analysts and also using analysis software to make sure that the assets perform in their best capacity.

Change of Pattern in Recruitment of Staff:
The recruitment of the staff has also gone through a sea-change over the years. Earlier the general manager was the first to be recruited when a hotel was started. It is completely different now. The roles and responsibilities of executives have also been diversified. Some of the key areas like housekeeping etc are now being outsourced.

Emphasis on Strategic Part of Hotel Development:
The strategic part of the opening of a hotel is now being given a lot of importance. Each and every aspect of the running of a hotel is now handled by the experts. The strategy is devised for every process that is followed in the hotel.

Better Staff Training:
The reputation of a hotel is greatly impacted by the way the staffs handle their responsibilities and how they behave with the guests. Staff training plays a major role in hotel asset management as it equips the staffs to understand their roles and shoulder them with expertise.

Review of Staff:
Apart from the training, periodic review of the staffs is also very important. It is similar to the appraisal process where the performance of the employees is reviewed and based on it, they are given promotion and salary hike. This will help in identifying the good as well as the bad performers.

Smart Revenue Management:
Hotels receive bookings from different sources including OTAs, direct booking, phone booking etc. The specialists work on strategies to maximize the revenues by implementing dynamic and flexible pricing of the property. This helps growth both RevPar as well as GoPar.

Monitoring & Maintenance Of Asset:
Hotels must keep their asset including the rooms, crockery, bathroom fittings, beds etc. in a tip top manner. Broken furniture and bathroom fittings can be a big turn-off for the guests. They might write negative reviews of the hotel which could, in turn, prevent new customers from booking the property.

This evolution of hotel asset management is a constant process and it is likely to continue in 2017. The focus will be on implementing technologies in order to make the processes more efficient. For instance, hotel asset management software will be used to keep track of every asset and identify non-performing assets.

The hospitality sector has undergone a major change over the period of few years. As web and app based hotel booking is in practice, the hospitality industry is now burdened with handling inquiries from different channels. Moreover, hotels are no longer limited to providing an accommodation to the guests. They now expect an experience that they can remember. As the competition grows, the hotels have to be on their toes to ensure a pleasant stay.

How Does a hospitality management company help?

hospitality management

In order to project your property in the best light to the guests, there are a lot of aspects that need to be taken care of. From its marketing on different platforms to ensuring a hassle-free booking, each and every process involved, should be fine-tuned. This is where a hospitality management company comes into the picture.

A hospitality management company handles all these processes:

Revenue Management Strategies

Revenue management experts help you with applying the best practices in variable pricing strategy. It is done by anticipating the demands and varying the tariff accordingly. The strategic control of the inventory can also help increase the revenue as the rooms can be sold to the right customer at the right price. In case of heavy rush, hotels often go for overbooking in order not to miss out on the guests. Only a good hospitality consultancy can help you handle such scenarios.

Asset Management

Asset management is carried out in two phases- pre-opening and post-opening. The pre-opening phase comprises recruitment of the hotel staffer including the managers, selection of the vendors, training of the staffs and development of reporting structure. The post-opening asset management includes monitoring the performance of the staff, improving the market position and maintenance of the assets.

Sales and Marketing

Behind every successful hotel business, there is a sound sales and marketing strategy. The hotels need to be marketed on all the online platforms and other digital media. The sales and marketing team handles the digital marketing of the hotel, works towards enhancing its online reputation and collaborates with OTAs to ensure maximum visibility of the hotel.

Operations

The review of the guests is one of the most important factors that bring new customers to a hotel. A guest will give positive reviews only when he or she is satisfied with the services. High standards of operations make sure that the guests leave with a smile on their face.

Conclusion

A hospitality management consultancy is experienced in handling all these aspects of the business in a technology-oriented manner. Most bookings are made online from different online travel agencies. All these bookings need to be segmented on the basis of the nature of a trip and other factors, so that the guests can be provided with exactly what they wish for. Only an efficient hospitality management company can ensure a happy and hassle-free experience for the guests.

In order to maximize the hotel revenue in the hospitality sector, it is important to sell the right space at the right price at the right time. The hotel revenue management model that was in practice a few years ago focused only on keeping the rooms occupied by the guests. Now, the focus has shifted to demand-based pricing. The hotels, as well as, other hospitality establishments like amusement parks, charge a surged price for the tickets during peak hours. This helps them ensure more profit when the demands are high.

hotel revenue managment

The secret of maximizing the profit in the hospitality sector is forecasting the demand and set the price of the space (rooms in the hotel) accordingly. You also need to consider the fact that such services are perishable which means that if they are not sold within a stipulated time period, they lose their usefulness. If a room remains unoccupied for a day, the revenue for that day is lost. Therefore, it is important that the price of the space is set dynamically.

The actual tariff of the space is fixed on the basis of different factors including the advance reservation period of the hotels as well as the price charged by the competitors. The duration of the guests’ stay is also a factor that affects the price. In addition to that, the hotel can also enhance their revenue by encouraging the guests to utilize services like spa, games, businesses conference rooms, restaurants, and other activities. All these assets contribute largely to the overall revenue of the hotel. The revenue management of a hotel is no longer possible by estimating all the factors in a rough manner. There is a want of accuracy and that why new generation revenue management solutions are now available to help the hoteliers understand the pattern, anticipate the demand and set the price accordingly. Such solutions take into account every service that the hotel offers in addition to the room and also the auxiliary revenue streams that contribute to the profits.

Segmentation of guests based on how have they booked the hotel makes it possible to group them for price sensitivity. Segmentation of the guests is also done on the basis of purpose of the travel. Business travelers have different requirements as compared to leisure travelers. Guest segmentation is one of the key factors that is at the core of revenue management. From marketing and sales to loyalty management, the segmentation approach lets you support all these efforts.

From the ROI perspective, it is imperative that a hotel business relies on a strong and automated revenue management system. A system like this not only increases the revenue and profitability but also ups the efficiency of sales and marketing efforts. This directly leads to improvement of market insight, demography of the guests and current trends in the occupancy of the space. In this day and age, where competition is quite intense in the hospitality sector, it is the time that you must manage your revenue smartly.

As the travelers invariably book hotels online, they turn to the reviews while choosing the hotel. The reviews provide the required insight into the property and help the guests decide whether the hotel offers, what they are looking for. With a slew of hotel booking websites emerging on the Internet, the hotel owners now have numerous platforms to showcase their property. These platforms also let the guests express their views (both negative and positive). As these reviews are very critical in terms of driving the users to book the hotel, you need to make sure that more positive experience of the guests is expressed by them as online reviews. You can hire hotel consultants who can help you in these ways.

review and rating

Here are 5 ways to increase and improve customers’ review:

Being active on social media and OTA (Online Travel Agencies)
The guests often voice out their opinion on social media channels and in order to maximize visibility, you need to be present on major OTAs and social media platforms like Facebook and Twitter. You can also request the guests to repeat their positive reviews on review sites like Tripadvisor.com and others.

Seek Review At Check-out
Check out time is the best time to ask for a review from guests, as the memories are still fresh in their mind. The guests can be requested to write their review using a device offered by the hotel. The users can just log into the account and write a review.

Follow Emails To The Guests
Hotels can send emails to the guests after they check-out and request them to review their services. In order to make the process easy, they can provide the link to the review site within the message. The hotels can also send the invoice along with the link to the review site.

Attend To Complaints Instantly
In the case of customers posting any complaints about the hotel on social media sites, the remedial measures should be taken instantly. Also, such posts should be acknowledged and responded to, as quick as possible. After the issue is resolved, the customers can be requested to delete the post.

Track and analyze customer reviews
Each and every attempt to increase and improve the reviews for a hotel website must be tracked and analyzed. Amendments can be made to these processes if the results are not satisfactory. All the strong points as well as the weak points, as suggested by the reviews, must be taken into consideration to enhance the overall customer satisfaction.

For every hospitality business, it is important to offer an unforgettable experience to the guests not only during the stay but also after the stay is over. Reaching out to the guests on social media, responding to their queries and reviews etc. are crucial in building a brand reputation that has the potential to attract them.

Increasing competition, fluctuating market and demanding consumers all these make for a risky business in the hospitality industry. If you overlook any of these ingredients your business runs into the risk of failure. Since the global market is an open platform where sellers and buyers freely move, it is important for a hospitality business owner to avail the services of hospitality consultants.

Not everyone has the expertise of a particular industry. If you are getting into a hospitality business, you cannot be 100% sure that you carry all the knowledge of the industry to ensure a profitable result from the business in no time. This is one of the biggest reason that consultancy services have grown with pace in the past few years. A lot of people understand that before starting up a hospitality business they require to study the feasibility of the business, risk involvement and revenue generation sources.

Role of Hospitality Consultants

Hospitality Consultants
For a successful hospitality business, it is advisable to take the help of the hospitality consultants. Hotel consultants are those professionals who carry the expertise of the business. They counsel the hotels, restaurants, club management and other hospitality business regarding the successful operation.

Lodging, restaurants, planning of events and various other units are part of hospitality services. Since every arm of this industry means to cater the consumers with services, hence it becomes necessary for the hotelier to chalk out a well-defined strategy, plan to serve the customers in the best possible way.

Hospitality Consultants Help Strategizes Better

Hospitality Consultants Strategizes
There is a steep rise in peoples who adopted hospitality services. These days hospitality business owner is working towards creating a better management system to get the largest share of the market and that is what defines a successful business. However, this needs a well organized and well-planned business operation to make the most of the opportunity in the hospitality industry.

Since the hospitality management consultants are professionals, they are well equipped with the knowledge of hospitality industry and market in whole. It is obvious that when we need an advice we go to the one who is better or well versed with the situation to find us a solution. Similarly, hotel consultants are experts in the industry and they know the best what will work and what won’t in the hospitality industry.

Hence, it is better for a hospitality business to take the help from the hospitality management consultants to avoid the risk of failure.

Like other businesses that rely on direct interaction with customers, hospitality sector too, has been affected significantly by the emerging technology. Most consumers are booking online, preferably using mobile devices. In order to offer a personalized service, the businesses collect diverse data from the customer through different channels. This huge chunk of data is in the form of data silos which refers to separate data sets without any anchor to integrate them together. Different data silos include CRM data, PMS data, analytics data, review data and others. The emerging technologies are helping the hospitality industry and the hotel consultants to integrate these data silos and transform them into a more usable data sets that are related to each other.

Big Data & Hospitality
As already mentioned, a huge amount of data that is collected through different channels is getting tougher to manage, let alone use it. The only way this data can be put to some meaningful use by the is integration.

sales and marketing team

If we take a simple example of guest acquisition cost, which is crucial for the sales and marketing team to know, we would find that those teams are not able to make an informed decision. The data has to be brought to an organized place or platform such as an app. Good hotel consultants can help you employ such technologies to bring about the most effective results.

Effect of Mobility
More than 75% of the internet traffic now originates from mobile devices and hospitality industry is not untouched by the changes in market dynamics brought about by the smartphones and apps. Mobile apps not only helps the businesses collect users’ information and also put it to the best use. From the hotel’s operational standpoint, mobile phones are quite useful as they can help the hotel employees to take informed decisions on guest service as well as frame strategies.

Integrated HMS
Most hospitality businesses use a customer relationship management system that let them run the business with efficiency. However, with the advancements in technology, these hospitality management systems are getting highly sophisticated and hence, require integration. For instance, the hotels can include the preferences of guests when they visit the property and use the info to personalize their stay when they visit again. The same information can also be used to engage the customers when they are looking for holiday booking and also be integrated to the supply purchase management system of the hotel.

Chat Bots for better communication
Communication is the key to acquiring as well as retain the customers. However, the regular means of communication like email and call is not always effective. Chat bots not just limited to booking assistance but also including features such as internal communication and file sharing will change the way users interact with the hotels and other hospitality businesses.

Improved guest experience: A Clear Benefit
With technology, the data will become more manageable and hence, usable. As data from various sources will be integrated, a more informed decision will be made and this will help in improving the experience of the guests who visit the hotel. In a nutshell, the biggest influence of technology on hospitality sector will be a simplification of the data and make it actionable and usable.