The secret behind those cheap hotel rooms
It’s that time of year again. Christmas is over, the New Year has begun and suddenly, the TV is full of advertisements telling you how to get the best hotel rooms at bargain prices. You know the sort of thing – book now and get a four-star room for a two-star price.
Ever wondered how hotels manage to make that work – how they juggle rooms and prices to ensure that rooms are filled at prices that are beneficial to guests whilst still maximising revenue for the hoteliers? Supposing they sell rooms too soon too cheap, losing out on the potential for getting a better price if they waited a little longer? And, if they did wait longer, what are the chances of that room remaining vacant and the hotel losing out all together?
If you’ve ever wondered how the hoteliers keep their nerve in such circumstances, here’s the secret. It’s all down to software and something called Yield Management.
Yield Management began in the airline industry and has now spread to the hotel world. It’s an integral part of software like roomMaster from NFS Technology Group
One four-star London hotel has reported seeing revenue increase ten-fold since installing the roomMaster yield management module that examines when to raise or lower room rates, automatically changing rates based on criteria such as occupancy levels and length of stay. Rates changed in the hotel are automatically passed on to channel management systems and the hotel’s web booking engine.
Note that mention of the hotel’s web booking engine, because that too is an important aspect of the way hotel room booking is changing these days. It has been estimated that in the next five years more than 50% of new hotel business will come from online channels. Today’s iPhone and Blackberry generation already see booking a hotel room on their smart phones as the norm.
So that same software that does so much for driving the right rates for rooms also offers an integrated solution that seamlessly engages with existing and prospective customers, handles integrated email, maintains data and delivers great customer service.
It makes life easier for hotel staff who, in turn, get more time to devote to their guests. It’s a win-win situation for staff and guests alike.