Social media, interconnectivity, consumer review sites – these have all become game changers in the booking process for hoteliers.

What “new” advice can I give revenue managers to stay ahead and above the comfort curve? Let’s start with implementing intelligent, automated and dynamic pricing strategies to manage and pre-empt the evolving and sometimes unpredictable habits of consumers. 

While this is not a novel concept, it’s still one some revenue managers evade or put off for another year.  But with the calendar counting down, there are fewer excuses left, so let’s take a look at some challenges and their resolutions for the coming year.

What, When, Why, How?

It’s difficult to get a handle on exactly what motivates consumers to book a place and time.  Is it mainly the price, brand loyalty, reviews from the media or trusted websites – or a combination of all three?

This interconnectivity can often leave revenue managers with an exhausted perspective of what works and what doesn’t. With platforms in the playing field such as social media, mobile apps, online travel agencies, and myriad travel deal sites – not only are consumers flooded with options for data, but revenue managers need intelligent solutions to assist.

The industry reports support this trend.  According to a recent Travelport study, 25 per cent of leisure and 26 per cent of business travellers researched their OTAs’ for travel plans. This is only going to continue to grow in 2012 as meta-search engines such as Kayak and Google Hotel Finder expand customer touch points and drive traffic back to OTAs.

It’s Not Always About Price

In tight economy consumers want value. But, what’s even more important is perceived value – they want to feel confident with their booking decision.  Like myself, industry experts realize that a room rate isn’t the only qualifying factor in a what-when-why-how decision-making process. They may want to feel confident with a decision to book a particular hotel, not only based on rate but the inclusion of amenities, customer service and other intangibles.

So the booking rate equation becomes more complicated. Factor in business traveller group discounts, package deals, special incentives or online travel providers, and the equation becomes even more challenging.  It’s also challenging to understand consumer behaviours and motivations, past, present and future.  Analyzing data of this complexity is, well, complex.  By utilizing automated pricing strategies, however, hoteliers and their team can dig far deeper into the data without guesswork or relying on historical information only.

Mobile, Mobile Everywhere

Based on what’s happening in the retail and airline industries, while the mobile channel has become the buying and booking tool of choice, there’s still a great deal of room to grow. It’s time hotelier get onboard with mobile.  Google projects that eight per cent of mobile users will be booking travel from their smartphones by 2012. Automated pricing systems can pre-empt the quick changes in technology. As booking windows continue to shrink, being receptive to mobile booking but also pre-emptive to rate strategy will be key to increasing occupancy rates.

And then there is consumer engagement. Facebook, Twitter, other social media outlets and e-commerce generates buzz:  travellers share their experiences, both favourable and unfavourable, and this is proven to be a growing trend. But revenue managers already have a lot on their administrative plate. Maintaining high occupancy rates while maximizing profits is most important; however, other variables such as guests writing about travel experiences or special offers on mobile apps can also have considerable impact on demand, and bookings. This level of access, powered by interconnectivity, breeds a level of openness and transparency not often seen in the hotel industry. But, with automated systems in place, this can create a new pathway for hoteliers, revenue managers and other executives. It will allow them to get a grasp and, importantly, keep a grasp on increasing occupancy, revenue and customer satisfaction – ultimately that’s what matters most.

Clearly, consumer behaviour is not stagnant, it’s somewhat organic – twisted and turned and influenced by environmental factors. Pricing rooms is a combination of intuition, sales trends, economic fluctuations, and increasingly new variables such as mobile apps and social media. Using automated pricing strategies will help hoteliers navigate through these variables using technology.  With 2012 fully underway there are exciting changes for hoteliers.

Think and visualize bigger by grouping together market segments, tracking inventory, integrating customer information, and improving the platform for your hotel’s operation.  Build loyalty, embrace technologies and include automated pricing strategies which in turn will support mobile bookings, maximize revenues and fill rooms.

About REVPAR GURU

The Intelligent Online Solution: Revenues and Results in Real Time

Jean Francois Mourier is CEO and Founder of REVPAR GURU, a company that delivers an intelligent online solution to help hotels maximize occupancy, improve distribution and grow revenues. By automating critical pricing decisions, REVPAR GURU adds power and adaptability to improve rate optimization and deliver results in real time. REVPAR GURU’s online pricing solution empowers revenue managers with the knowledge they need to make better pricing decisions by combining the RMS, Channel Manager, & Rate Shopping solutions to form the ultimate online selling system. To learn more about REVPAR GURU, please visit www.revparguru.com  or call +1.786.478.3500.