Hotelwise

Introduction

Hotel Revenue management can be referred to as an analytic strategy that predicts consumer behavior and accordingly optimizes room availability and price to maximize revenue growth. The main purpose of adopting a hotel revenue management system is to maximize profit while selling the same number of hotel rooms. This is strategically done by analyzing customer behavior and matching the demand and supply for gaining maximum revenue. The strategy would mean not selling a room today, selling it at the right time for a higher price tomorrow, or when demand is low sell at a discounted price. This way hotel revenue management plays a key role in the hospitality industry for businesses to maximize their profits. Having said that, in today’s article we have covered the importance of hotel revenue management in the hospitality industry.
Importance of Hotel Revenue Management
As stated earlier hotel revenue management allows businesses to adopt a data-driven approach to make an informed decision on which room to sell at what price and when. It is a way of ensuring that businesses make an informed decision to drive maximum revenue while selling the same amount of rooms as before. Revenue management gives hoteliers a greater insight into the actual performance of their hotel business. To increase the revenue and gain maximum profits it is very important to understand revenue management in Hotel Industry. This can help you gain the desired results. Given below are some key reasons why revenue management is important in the hospitality industry-
• Helps make an informed decision on the allocation and distribution of resources.
• Helps focus on different areas or department within a hotel that needs to be maximized for gaining better profits.
• Helps in improving demand forecasting.
• Helps maximize profits based on the demand and supply in the industry.
• Makes the overall company more efficient by driving down the costs.
• Maintains the right balance in the cash flow throughout the organization.
• Helps manage revenue flow of businesses.
• Helps in gaining competitive intelligence and an edge over others in your industry.
• Streamlines work process and provide and the best techniques towards a possible hotel management system.
• Saves significant time and costs associated with traditional pricing tactics.
Conclusion
Revenue management in general plays a vital role in the hotel business. Overall, adopting a Hotel Revenue Management for your hospitality business will help you gain great monetary benefits. So, hotel businesses looking to maximize their profits must consider implementing a revenue management system over the traditional pricing strategy. Availing hotel revenue management services and implementing the revenue management strategy in the hotel industry will definitely ensure success in your hotel business.

Introduction
The COVID-19 Pandemic situation has shaken lives and businesses around the globe. Especially, when it comes to the hospitality or the hotel industry, businesses have taken a huge jolt. Currently, the hotel industry is scrambling to regain their financial footing. Amid such situations, hoteliers can probably find a ray of hope with Remote Revenue Management solutions to boost their revenue and move towards higher profits. Conceptually a new strategy evolved during the time of the pandemic, remote revenue management may be unfamiliar to many. However, to educate the industry more on this we have come up with an article that explains what remote revenue management is and how it may benefit the hotel industry. We have today listed down the benefits of partnering with a remote revenue manager for outsourced revenue management services. But before that let us first understand the role of a revenue manager in general.
What is the role of a hotel revenue manager?

A hotel revenue manager is an expert in the industry who knows how to get the ball rolling and increase revenue for the hotel industry. They identify revenue opportunities and help businesses set a clear strategy for increasing RevPAR. They have the industry knowledge and expertise to extract critical information and use it to create a strategy that increases revenue. So, partnering with a revenue manager is definitely an option a hotel business must consider, especially during such situations where the normal inflow of income is bare minimum. Given below are some good reasons why hotel businesses must consider outsource revenue management services and opt for remote revenue management.
What is Remote Revenue Management?
While revenue management refers to the strategy of focusing on selling the right room to the right client at the right moment at the right price, remote revenue management refers to the same practice of revenue management but performed remotely.
Benefits of availing remote revenue management
Given below are lesser-known facts and benefits of partnering with revenue managers and availing their remote revenue management services.
Identify new opportunities and market demand-
Maximizing revenue is all about understanding the market and evolving with it as per the new and growing demands. With situations like the pandemic hitting the industry hard, hotel businesses can only survive by adapting to the situation and this can only be done with the right amount of market analysis. A remote revenue manager will have all the data and statics of both the external market and hotel’s internal metrics to tackle such situations and suggest a breakthrough strategy for your business. Effective remote revenue management experts will identify early market trends and know-how your hotel can capitalize on-demand, and quickly implement a strategy around it. For instance, in a pandemic situation like this where the demand for dine-in and buffet services has come to a standstill, building a strategy around the take-out services is what must be planned with the revenue manager.
Best Solutions-
Remote revenue managers know the ins and out of the industry and are trained for unexpected situations like these. Conducting a thorough analysis of your business situation and revenue-generating and maximizing capabilities, the revenue manager will suggest a solution that best fits your business, and especially in line with the current situation. They can examine the hotel’s existing technology and suggest the best solutions to drive sales. Revamping your internal booking strategies to managing the best revenue management software to rearranging technology for more profit, they can suggest the best solution for your business.
Retain Booking Revenues
Availing remote revenue management services from revenue managers can be beneficial for your business. They will know ways to boost direct sales through their own online booking engine and GDS and rely less on those OTAs that make huge profits on commissions. They will suggest the best option for your business and ensure you with profitable results.
Reach Wider Audience
Revenue managers will know how exactly businesses can reach a wider range of audiences and amplify your hotel business. Adopting the best channels like social media, GDS, and other high traffic channels revenue managers will surely help boost conversions. The experience remote revenue management team can identify opportunities and accordingly suggest channels and help you work towards lowers the overhead expenses and labor costs during seasonal lulls. Again, on the contrary, they can help you maximize profits by reaching a larger set of audience by identifying opportunities during seasonal spikes and increase rates for higher revenue.

Introduction
When we speak about Revenue Management it is the process of optimizing availability, distribution, and pricing, to maximize financial outputs. This concept applies to the hospitality industry and especially the hotel industry wherein customers are willing to pay different prices for the same product or service at a given point of time and where businesses have perishable inventories. Speaking about the hotel revenue management industry it is all about selling the right room, to the right person, at the right time, for the right price, through the right channel, with the best cost efficiency. Elaborating more on this in today’s article we have covered the importance of hotel revenue management and some tips for leveraging hotel revenue management for the hotel business.
Importance of revenue management
Hotel Revenue Management is critical for hotels for it helps businesses maximize and sell their property for maximum profits at a given point in time. It is important for it helps optimize the amount of money that can cover the fixed costs. Businesses can analyze and make an informed decision that facilitates business growth and profits. Listed below are some reasons why revenue management is important for business.
• It focuses on every department within a hotel for building a revenue management strategy for increased profitability.
• Revenue management makes the overall company more efficient by lowering the costs.
• It facilitates new revenue sources with the creation of a new line of services with optimized pricing.
• The strategy helps improve demand forecasting and pricing strategy for the business.
• It helps maintain the right balance between revenue and hospitality management.
• Adoption of revenue management strategy helps streamline revenue flow.
• The hotel revenue management strategy facilitates competitive intelligence and market awareness.
• It helps adopt the best techniques and strategies towards building a systematic hotel management system.
• Revenue management helps reduce the time and costs associated with traditional pricing tactics.
Revenue management employs a revenue optimization methodology that helps businesses certain drive additional revenue and higher profitability. So, if businesses are looking to maximize their revenue and make good profits including the hotel revenue management strategy is essential.