Managing a small group of properties comes with its own unique set of revenue management challenges.
Should each property manage its own revenue, or should it be centralized at the head office? How can you ensure every property gets the attention it needs without consuming all your time?
With the right approach and tools, hotel groups can do it all: streamline revenue management and ensure consistency while also empowering their teams. Let’s dive into how to make it work.
Three Revenue Management Models for Multi-Property Hotel Groups
The first decision to make is: where will revenue management happen? There are three main approaches to choose from:
- Centralized model. Revenue management is overseen at the corporate office. This creates efficiencies while leveraging the expertise of a shared revenue manager across the portfolio. It’s an effective way to apply best practices uniformly.
- Decentralized model. Each property handles its own revenue management, reporting to the head office regularly. Onsite teams can leverage their knowledge of local markets and guest behaviors, tailoring pricing to suit their unique needs.
- Hybrid model. This model combines the best of both worlds and offers flexibility. Generally speaking, the head office provides strategic direction and oversight, while individual properties manage day-to-day revenue tasks.
Which Revenue Model Is Right for Your Group?
The ideal approach depends on the size and structure of your portfolio:
- Un centralized model works well for groups with similar properties in the same market or under a unified brand. Consistency is key here.
- Un decentralized model suits diverse properties spread across different markets, where local knowledge is a critical advantage.
- A hybrid model is a good fit if sales and marketing teams already operate at both the property and corporate levels, helping to ensure alignment across departments.
Communication: The Glue That Holds It All Together
Under any revenue management model, communication between properties and head office is essential. These practices will help ensure everyone is on the same page:
- Set objectives. Define monthly and annual goals at each property for key metrics like occupancy, ADR (average daily rate), and RevPAR (revenue per available room).
- Clarify roles. Ensure everyone knows their responsibilities, whether at the property or corporate level.
- Share strategies. Align on activities and initiatives, so all team members understand the “why” and “how” behind decisions.
- Report results. Review performance data regularly and collaborate on ways to achieve even better results.
- Hold weekly or bi-weekly meetings. These check-ins will help ensure everyone stays focused and can adapt quickly to changes in market conditions.
Flex Your Collective Clout: Optimizing Group-Wide Initiatives
For ownership and management companies, balancing property-level autonomy with group-level objectives is key to maximizing performance. Here are some ways to create synergy:
- Support the teams. Provide training and guidelines in revenue management for key managers at each property.
- Launch group-wide campaigns. Run marketing initiatives that promote all properties or a specific subset of your portfolio.
- Prioritize direct bookings. Implement strategies to ease dependency on OTAs, such as a group-wide offers and a best-price guarantee.
- Cross-sell properties. Include multiple properties in group proposals, corporate agreements, overflow booking referrals, and guest loyalty initiatives.
Automated Pricing: A Game-Changer for Hotel Groups
Multi-property groups often lack the time needed to monitor market conditions and adjust pricing manually for every property in the portfolio. This can lead to missed opportunities due to overpricing or underpricing.
Automated revenue management solutions can bridge the gap by:
- Freeing up staff from time-consuming daily tasks to focus on revenue strategy.
- Dynamically adjusting rates multiple times a day based on market demand, competitor pricing, and occupancy trends.
- Enabling pricing and availability to be managed centrally or configured locally by individual properties.
- Ensuring pricing is managed all day, every day.
Key Features to Look for in Revenue Automation Software
Not all revenue management systems (RMS) are suitable for small hotel groups. Here are some of the key features to prioritize:
- Ease of use. Simple, intuitive systems minimize training requirements and save time for teams, requiring just a few hours per week of input per property.
- Multi-property management. Effortlessly switch between properties, manage multiple locations and currencies, and generate portfolio-wide reports from a single platform.
- Customizable settings. Choose from a variety of controls, including user access, minimum and maximum pricing, rate differentials, overrides, and autopilot mode.
- Advanced features. Look for extras like forecasting tools, minimum stay restrictions, surge protection, and group pricing tools.
Ready to Simplify & Enhance Your Group’s Revenue Management?
RoomPriceGenie makes revenue management highly efficient and effective for independent hotels and multi-property groups. Réservez une démo with our revenue experts today, and spend less time on spreadsheets and more time delighting your guests!
Pour savoir comment RoomPriceGenie peut aider votre property à augmenter sa rentabilité, Commencez votre essai gratuit de notre solution de tarification automatisée dès aujourd'hui !
