An important part of owning or working at a hotel is revenue management. Managing your revenue properly allows you to have a good understanding of your hotel’s opportunities and soft spots in your business. How can you achieve revenue and occupancy goals to ensure your property is performing at its best? Below, you’ll find key metrics and systems to utilize for increased revenue management at your property.
1. Set goals & use forecasting
Setting goals for your business is so important. Goals help you strive to do better, while seeing what you can achieve. With innRoad’s property management system, setting goals is easy. Put a strategy in place to reach your goals and let innRoad help you achieve them. You can customize your goals and see real-time projected revenue forecasts using our hotel revenue management software tools.
- Set ADR, occupancy, and revenue goals
- Get recommendations on how to meet goals
- Forecast results
2. Monitor your progress
How do you know if your revenue management strategy is working? You need to be consistently monitoring your progress, pulling numbers, and analyzing the results.
With innRoad’s property management system, it’s easy! You can have your metrics sent to you daily, weekly, or monthly. Instead of spending time printing multiple reports, you can automatically receive an overview of your property’s progress to your email. Who wouldn’t want an easy to read and action-inducing progress report for their property?
- innRoad Performance Digest highlights how your property is performing against the goals you’ve set.
- Monitor your property’s daily occupancy %, ADR, Revenue, RevPar, Cancellations, and total available room nights.
- Compare your current performance to the previous year.
3. Utilize automated rate changes
Are you away from your computer? Too busy helping guests? Automated rate changes will allow your property to base your rates off of current booking occupancy.
With innRoad, you can automate rate changes in response to changes in booking activity. For instance, our Yield Management tool can increase or decrease your rates based on your occupancy percentage. It allows you to automatically issue a rate change when you receive a Surge Alert or reach a specific occupancy target.
4. Enable surge alerts
Surge Alerts will notify you when your property has received multiple bookings for the same date in a short period of time. These alerts allow you to adjust your rates quickly so you can maximize your revenue.
Using innRoad’s state-of-the-art hotel revenue management solution, you can take advantage of higher demand, even while on the go! If you aren’t at the front desk, you can easily be notified on your mobile device as reservations quickly roll in. Then, with just a few clicks, you can adjust your rates in real-time, while you’re away from your desk.
- Adjust inventory on third-party sites as occupancy increases for selected days. Our hotel revenue management system allows you to focus on capturing direct bookings or increasing rates.
BONUS: Revenue generating ideas for hotels
Hoteliers are always searching for new and creative ways to maximize their revenue-generating opportunities. However, moving from “idea” to “implementation” can be a challenge, so here are some easy-to-execute ideas to help hoteliers navigate their way along the path to profits.
Develop an up-sell strategy
Leveraging existing programs is generally the fastest way to new profits, so developing a guest-room up-sell strategy can help unlock value from a hotel’s most valuable assets. Both online and in-person, hotels should present travelers with options to enhance their stay with upgrades and/or add-ons. This can include selecting a room with a superior window view, greater square footage, different bed type, in-room amenities, specialized services and more.
When pricing up-sell options, it’s important to evaluate various factors, including quality of execution, labor, product costs and prices offered by competing hotels for similar experiences. It can feel like a tightrope balancing act, but providing travelers with up-sell options at a great value can generate excellent profits for your hotel.
Create partnerships and special packages
Another key area of opportunity for hotels exists just beyond the property walls. Establishing strategic partnerships with local community organizations, such as tourism boards, restaurants, attractions and large festivals, can provide hotels with the drawing power and marketing muscle capture greater annual profits.
For example, partnering with a local food and wine festival as their official lodging sponsor and offering special rates for attendees can help secure guaranteed room nights and revenue. By establishing the right partnerships and special packages, hotels can thrive with the increased exposure to new travelers and create new revenue streams that lead to record profits.
innRoad: The most complete property management software for revenue management
It’s time to give your dynamic rate strategy a boost. innRoad’s Rate innSights tool allows properties to achieve revenue and occupancy goals by giving hoteliers complete visibility into opportunities and soft spots in their property’s occupancy.
Streamline your operations and ensure that your guests have a great experience using the world’s most complete hotel property management system – innRoad. Our property management software allows you to do the following:
- Create, modify and manage reservations
- Make custom rates or room classes
- Assign housekeeping tasks to specific staff members
- Generates dozens of reports, including Room Forecasting, Net Sales and Daily Performance Reports
- View occupancy percentages
Our system is also optimized for mobile, which means you can manage your property through your phone.
With innRoad, the price you see is the price you get. There are no hidden fees and no up-charges.