Component Rooms: Another Step toward Personalizing the Guest Experience

By , Principal Industry Consultant


Pricing guest rooms for all guest types

  • Component rooms is a mix of guest rooms that can be converted into various combinations to form larger accommodations for guests
  • Little has evolved in terms of an automated strategy for component rooms until now
  • IDeaS G3 RMS understands demand at a granular level, down to the room type

A 300-room hotel typically has 300 rooms to sell on any given day. But, for hotels who cater to the evolving needs of business and leisure travelers, a 300-room hotel can have many options, which can translate into a heightened guest experience and more opportunity to drive optimal revenue.

Component rooms or virtual rooms, are a mix of physical guest rooms that can be converted into various combinations to form larger and more tailored accommodations for guests.

The notion of alternative accommodations through a sharing economy has certainly spurred huge growth in the travel industry. Hotels can compete more effectively with these alternatives by providing what their guests seek: flexibility and personalization. Guests want accommodations that fit the unique needs of their traveling party. Hotels can now more effectively yield their advantages of location, amenities and reputation by adding flexible sleeping accommodations to that list.

Hotels have been selling component rooms for years as a wonderful way to cater to these guest needs. However, little has evolved in terms of an automated strategy for these types of rooms—usually a combination of manual practices, PMS configurations and constant oversight. This means that rooms are often excluded from certain channels to appropriately protect the inventory but as a result they go underutilized and undersold. RM technology has lacked the necessary capabilities to support this in an automated fashion. Until now.

IDeaS Revenue Solutions has tackled the business challenge of not only managing component rooms, but managing the revenue that stems from understanding the demand for the various combinations and pricing accordingly. It has taken a company like IDeaS, who is long known for turning complex business challenges into untapped revenue opportunities, to turn a process that is normally mired in complexity into an easy-to-use profit generator.

Powered by SAS® analytics, this new feature of IDeaS G3 Revenue Management System (IDeaS G3 RMS) allows revenue managers to optimize all combinations of room types and build a revenue strategy specifically for flexible inventory – all based on guest demand and price sensitivity.

The best part? IDeaS G3 RMS understands that demand at a granular level, down to the room type even. Using analytically determined pricing and inventory controls, only IDeaS can produce a strategy that determines whether the greatest revenue opportunity lies in selling rooms as individual units or as a sum in the form of a component room.

Now that’s something you can take to the bank.

Read the full announcement and learn why Terranea Resort is hooked on IDeaS’ capabilities to drive their resort revenues.

Blake Madril
Principal Industry Consultant

Blake is responsible for helping clients of IDeaS implement revenue technology and optimize profitability. Before joining IDeaS, Blake worked for individual hotel properties and a corporate management team. His roles ranged from operations manager to convention services director to corporate director of revenue management.

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