By Kathleen A. Cullen, Senior Vice President, PHG Consulting
Conducting rigorous benchmarking, preparing accurate projections, and developing a responsive new business mix — the pillars of sound revenue optimization and the foundation of a strong post-COVID business strategy — all are dependent on technology systems that are being used to their full potential. It’s in your hotel’s best interest to ensure that all system versions are up-to-date, that system integrations are implemented and working properly, and that each system is configured with the ideal optimization, understanding its impact on each of the related systems.
While hotel technology is still fragmented in that there are many systems for differing needs, it is important to understand that the configuration and use of each one affects the output and success of the others, and therefore the hotel’s optimization and profitability. For example, how your central reservation system (CRS) and property management system (PMS) are uniquely set up directly affects your revenue optimization processes — both manual and automated.
Here are some questions to consider as it relates to your revenue-related technology assessment:
- Does the hotel have sufficient interfaces allowing technology to help in cost efficiencies?
- Are these interfaces set up optimally? Or are there regular errors or translation challenges causing the team to constantly research and correct or find counterproductive workarounds?
- If you have a revenue management system (RMS), have you reviewed the configuration and decision outputs since the COVID-19 outbreak, including:
- Review the business rules that the RMS is currently using for decision output. The initial “rules” configured likely will be completely different based on the new landscape. Examples include but are not limited to lowest acceptable rates or “hurdle rates,” group ceilings, rooms-to-meeting-space ratios, and cost information.
- Booking activity has completely changed since you originally set up your RMS. It’s wise to review the decision output to ensure the system is properly calibrating to these new conditions.
- Does the hotel have an automated commission processor to ensure agencies get paid in a timely manner, and therefore have confidence in sending business to the hotel again?
Excerpted from New Rules to Be Market Ready, by Kathleen A. Cullen, a new white paper available from HSMAI and PHG Consulting. For additional information, insights, and tools, visit HSMAI’s Global Coronavirus Recovery Resources page.