Source: RevPAR Guru Inc.
Source: RevPAR Guru Inc.

REVPAR GURU, the developer of the only real-time revenue management software, announced the results of the recent industry survey, which was undertaken to provide hoteliers with a comprehensive, in-depth analysis of the strategies, tactics and tools currently in use by hotel revenue managers around the world.

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Survey says...

The survey indicates that RevPAR continues to be the most relevant way of measuring RM efficacy, followed by Occupancy (12%), GOPPAR (12%) and ADR (9%). The majority of revenue managers and hotel executives agreed that dynamic pricing (81%) would be the most effective way of increasing their RevPAR.

A valid point as the hospitality industry functions on a demand-based atmosphere. Interesting enough though, only a staggering few (11%) revenue managers currently use an automated revenue management software to calculate pricing, which would be an obvious way to ensure that a property's rates are reflecting current levels of supply and demand. Instead, hoteliers continue to rely on traditional methods such as historical pricing (61.6%), cold calling competitors (26%), and some just can't decide on a method (31%).

Other results:

  • 72% of the industry expects RMS to optimize all of their business mix and 28% only expect specific segments to be optimized.

  • Survey takers (67%) indicated that they believe that the STR comp set is a very important part of determining the best possible pricing for their property.

  • 86% indicated that they list their property on OTA's, regardless of the commission, which in today's increasingly global marketplace, is definitely a good business practice because of the often-touted "billboard effect", which says that by having a presence on the OTAs, not only do bookings increases on that site but it also causes an increase in bookings on a hotel's own website by increasing brand awareness.

The future of revenue management
With Internet sales on the rise-34% of those surveyed reported the Internet as their most effective sales channel-it is more vital than ever to have an effective revenue management strategy to maintain business. Now is the time for hotels to become pioneers in the new age of the industry by implementing the use of a sophisticated, automated system that can perform all the best hotel revenue management strategies, leaving revenue managers time to do what they do best - develop strategy and oversee the system's operations.

Jennifer Rodrigues
+1.647.867.0093
RevPAR Guru Inc.