With the right combination of pricing & inventory controls, hotels reach profit nirvana
Blog Soundbites:
- Pricing & inventory controls combine to drive maximum hotel profit potential
- Many of today’s revenue systems only manage price & pay little attention to inventory
- Today’s hotels need technology that can give them the greatest ROI
Milk & cookies, bacon & eggs and peanut butter & jelly are notoriously classic food combinations. As individual food components, each one is a workhorse worthy of a tasty and singular snack.
However, when combined with its tried-and-true partner, these flavors elevate themselves to a brand new category of taste sensation. But what if you could make more money by eating two foods together, instead of individually? Wait…what?
I might have started by comparing foods, but you probably realize now that I’m actually talking about automated revenue management solutions.
Still with me? Let’s dish: On one part of your plate, you have pricing. And on the other part? Your inventory controls. Now, you can dip your fork into those morsels however you please. (I’m looking at you, Sequential Eater.)
But it’s only when you start combining those two that the exciting action begins—the kind of action that drives maximum profit potential.
You see, most of today’s solutions call themselves revenue management systems, yet they’re only helping you manage your prices. The problem with this is that these pricing tools are actually more similar to an upgraded channel manager that offers functionality your property management systems has had for years.
Imagine your disappointment if you ordered a plain jelly sandwich or a dessert that was a lonely glass of milk.
These tools are focused on pricing (and pricing alone), and pay very little attention to your inventory. Their job is linear: produce rates, send them out and fill up the hotel.
You can throw in some restrictions here and there for good measure, but why are you doing all the work? If you order breakfast, are you given the bacon and told to just make the eggs yourself?
To be fair, this kind of method certainly takes you further than your spreadsheets used to, easing the burden of identifying the rates your guests will pay. But in an innovative age of technology and machine learning, your revenue strategy solution should do so much more for you.
Here’s our take: If you’re going through the process of implementing an automated revenue management system, then go for technology that gives you the greatest return on your investment.
It’s not enough just to fill up your hotel: IDeaS technology fills it up with the most profitable business to maximize your net RevPAR. IDeaS’ seamless, cloud-based technology helps you choose your most valuable business.
How so? Because only an automated solution that produces both pricing and inventory controls can perform this feat.
That’s where IDeaS stands alone: Providing the original classic combination done right for today’s modern revenue manager.
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