A New Methodology to Hotel Revenue Management
How can you keep property stakeholders easily and well informed about overall property trends and decisions that revenue managers make? This is one of the main questions we tried to answer when giving shape to our vision, based on which we started building Hotel Scienz. ?And we are bringing answers to this question -and to other industry challenges- ?with our revenue management solution that we’ll exhibit at ITB Berlin 2017.
To inform people efficiently, the right information needs to be packaged in the right format, so that makes sense to the receiver. We took in consideration that certain people prefer graphs over numbers, and for others it’s the opposite, they prefer numbers. ?So to present Key Performance Indicators in a dashboard-like overview, we needed to take away the non-transparent layer of granular data that is hidden inside each PMS. We ended up translating the massive amount of data into a dashboard with a clear overview for the current month and future months, that incorporates both numbers and graphical formats:
We used our best practices and proven techniques, gained during decades of combined revenue management with large teams for hotels, hostels, resorts and mixed use properties.
This led to the next step, the implementation of monthly reporting in our revenue management system. This is one of the major developments that we will reveal at ITB Berlin. The key of monthly reporting is not to show too much, and not to show too little. You do not want to overload colleagues with numbers, they’ll get lost in translation. A great monthly report sets itself apart as it brings the right amount of information in a format legible to all stakeholders;
- A solid performance analysis of the past month for channels, market segments, direct (online) sales
- Easy to read, reduced complexity
- Drills down into detail where team efforts are required to obtain results
- Puts forth actionable items and major challenges
- Clear year on year comparisons of for example the following information;
?Channel Production Report:
Day of Week Performance:
Total Revenue Summary & Budget Comparison:
Market Segment Mix:
Website Rate & Special Code Production Report:
(a drilldown of what sells online)
?These are some samples from the complete monthly report. We also dive into business cost, net RevPAR and plenty of other reports.
Hotel Scienz sets itself apart as hotel revenue management software. Where regular systems -already on the market- allow for revenue managers to query in their system, the primary focus of Hotel Scienz is to provide frequent reports with key information in a logical and easy to read format, during periods that make sense to all property stakeholders.
Obviously, the information can be queried as well, however this information presented is brought in an organized fashion. It is adapted to general management agendas and fits those information cycles. Therefore, the organization adapts, and actions far easier, and is enabled to incorporate each piece of information.
Also, it is in the nature of most people, no matter at which level of the organization, not to regularly search for information that might be important. However, when crucial information is presented at the moment it makes sense to look at it, the digestion process is automatically simplified.
A discussion of P&L figures should match an analysis of the monthly revenue report. After all, the monthly report contains information on what led to the top-line of the P&L. Commercial successes and mistakes can be discussed and adjustments can be set up for a near future, or for next year’s agenda.
There’s a lot of information to be shared within your organization. Making sure the right information gets to all stakeholders in time, in an easy to understand format and the culture and vision of your property will change for the better step by step.
We look forward to seeing you at ITB!
Remko West @ Xotels
Read the last news about Hotel Scienz, our Revenue Management Software interfaces with Mews PMS System