Hotel budgets are impacted by a variety of factors, such as seasonality, events, labor and competition. And, of course, unforeseen occurrences, like extreme weather, have the ability to drastically skew or contribute a surprise lift to forecasted figures.
Budgeting will never evolve into an exact science, but utilizing the proper technology and strategies will allow hoteliers to keep a firmer grasp on their expenses, revenues and profits.
innRoad’s hotel revenue management system, one of the core technologies seamlessly integrated into our cloud-based hotel management software, provides independent hotel operators with an easy-to-use system for managing financial performance. By streamlining accessibility to important performance data, such as Average Daily Rate (ADR), Revenue Per Available Room (RevPAR) and Occupancy, operators remain in total control of daily operations with accurate financial information presented in real-time. Additionally, comprehensive reports providing detailed accounts of sales, historical data and forecasts are easily downloaded for greater insight into financial performance.
Our Hotel Revenue Management System provides independent hotel operators with the tools to manage their finances more efficiently and with greater accuracy. But as noted above, there are still many external factors that can impact a hotel’s annual budget. To help take better control of your hotel’s budget, here are three strategies that, when paired with innRoad’s Hotel Revenue Management System, can position your property to realize its full profit-generating potential.
- Understand who moves your market
- Get to you know your competitors
- Examine your contracted services
Understand Who Moves Your Market
Hotels are greatly influenced by the flow of business and leisure guests who travel around the world to attend conferences and major events or just to rest and relax. Developing relationships with influential organizations that actively market to tourists and the business community, such as the local chamber of commerce and conventions and visitors bureau, will allow you to stay informed of opportunities for capturing revenue-driving bookings for your hotel.
Get To Know Your Competitors
Closely monitoring how competing hotels operate will allow you to proactively manage your property. In addition to their rates, learn about the services, amenities and special packages they use to attract guests. Keeping tabs on your competitors will help you better understand your position in the market, as well as develop creative methods for attracting new visitors to your hotel.
Examine Your Contracted Services
Annually reviewing contracts for services, such as electricity, water and landscaping, will ensure that your hotel is receiving competitive rates and exceptional service from your providers. This exercise should also include requesting proposals from competing vendors, so you can truly assess the marketplace. If your current vendors are under-performing, negotiate for improvements or switch to vendors that are willing to meet your operational needs.
Implementing these strategies in tandem with utilizing innRoad’s Hotel Revenue Management System are two important steps toward enhancing your property’s financial performance. But in addition to financial management, innRoad’s hotel management software provides operators with the tools to directly market their hotel to global travelers and then curate every aspect of their lodging experience.
Integrated alongside innRoad’s hotel revenue management system is our property manager software, booking engine, and global distribution services, all within one, fully integrated system. Our all-inclusive hotel management software provides operators with the technology to enhance every aspect of their hotel’s operations, so the goals of reaching maximum profitability and long-term success will ultimately be achieved.