The expansive and ever-growing hospitality industry has made way for an increasingly dynamic market. From a one-room Airbnb apartment to multi-billion dollar hotel chains, the industry is putting increased demand on its technology to meet its varied needs.
Small independent hotel chains have often fallen through this technological gap. In particular, revenue management software seemed predominantly aimed at huge hotel chains only.
We’ve put together a list of reasons (not an exhaustive list of course) as to how small hotel chains can be benefiting from revenue management software. So let’s dive in.
Although bigger hotels and chains may have the ability to dedicate large sums of money and time to their revenue management strategies, smaller chains are not granted such luxuries. With limited money, staff and time, traditional methods of revenue management analysis aren’t suitable.
Equally so, larger and more complex revenue management systems are not only expensive but often require trained specialists in the software to run them efficiently. Throwing money into buying the software and hiring a specialist aren’t reasonable expectations for smaller hotel chains. A
Often, in running a small chain of hotels, you are dealing with multiple brands and identities. These are then maintained by different systems and used by different staff. In doing so, we create a complex and overlapping technological web that includes unnecessary pieces of software and time-consuming training techniques.
A good, flexible revenue management system should be able to run in multiple environments, be read and reported on by any given team member and provide a simple solution to your pricing needs. In particular, this will enable you to run multiple hotels with consistency. It can ensure ease of movement and communication between the individual hotel as well as provide brand consistency both internally and externally.
Small chains, in particular, have a need to ensure that the reporting of their portfolio of hotels can be communicated in an efficient and timely manner. With multiple hotels under one banner, it is important the correct information is being passed throughout. In particular, information regarding your pricing.
This isn’t to say small hotel chains are to price consistently across the board. Of course not; different hotels, different brands, different locations all equate to diversity in pricing. It does, however, mean, that the differentiation in pricing is clearly communicated and a consistent process is used throughout the varying hotels.
Using revenue management software ensures that not only are you offering the best price for all your rooms, in all your hotels, but that you are also doing so in a clear and consistent manner. By doing this, communicating between hotels is made easier. Using one system that is applicable for each of your properties creates a level of clarity and consistency that is vital in ensuring the smooth running of multiple properties.
Whilst it is important to have strong links of communication between your properties, it may not always be the case that they use the same systems across the board. Having said that, it’s important to have a revenue management system that can integrate seamlessly with a variety of Property Management Systems (PMS).
As a small chain, your revenue management efforts need to be hassle-free and work effortlessly alongside the technology you already have in place.
That is why here at RoomPriceGenie we are working hard to provide integration with a wide range of Property Management Systems. Our team works tirelessly to ensure that using our software is an easy and stress-free process. To find out more about whether we are currently integrated with your PMS or Channel Manager (CM), head over to our integrations page for a full list and further information.
But don’t just take our word for it. We spoke to revenue management expert and all-round hospitality guru, Scott Dahl about his thoughts on the matter. In fact, he liked us so much he’s joined our Board of Directors – Welcome Scott!
RPG: How can software like RoomPriceGenie’s help small chains and hotel management companies?
SD: I think the biggest problem that smaller chains and management companies have is a consistency in their technology. Most management companies operate multiple brands and so often they end up with technology that is specific to each of those brands. So, you have hoteliers that are forced to learn 3 revenue management systems, 4 revenue management systems. You have leaders that are forced to understand different reporting formats that come from different brands.
So, a flexible system that can run in all those different environments is a huge advantage for people that run multiple brands of multiple hotels and things like that. So they can really run them all the same way as opposed to running them the way an individual brand decides they should be operated.
So that’s really the smaller management companies. Small chains, the same way. If you have technology that is across your entire portfolio then you can train one way. You can operate your hotels one way. Leaders can come in and say, ‘I’d like to see this piece of information or that piece of information’ and therefore the learning curve is super short when they go from hotel to hotel and when they score hotels.
So, in a small environment, having consistent technology is super important and difficult. If you work for a brand it’s pretty easy to have one system, but if you work for a company you really have to seek about providers that can give you that same advantage.