How Small Hotels Overcome Pricing Challenges with Cloud Revenue Tools
Summary
Independent hotels face challenges competing with larger brands and OTAs. Cloud revenue tools automate rate updates, forecast demand, and consolidate data, enabling quick responses to market changes. Key metrics like RevPAR and ADR should be tracked alongside channel mix to measure performance. Consider integrating cloud-based RMS, like PriceLabs or RoomPriceGenie, for enhanced revenue.
Key Insights
- •Small hotels struggle with limited staff time, fragmented data, and difficulty forecasting demand, increasing pressure from OTAs and chain competitors.
- •RevPAR (Revenue per Available Room) is a key metric for overall revenue performance, calculated by multiplying average daily rate by occupancy rate.
Action Items
- ✓Integrate data from PMS/channel managers, import historical data, and validate forecasts for 2-4 weeks to check forecast alignment before fully implementing automation.Effort: mediumImpact: medium
- ✓Before implementing a cloud RMS, establish baseline ADR and RevPAR and set clear targets for improvement, which helps measure the impact and adjust strategies.Effort: lowImpact: medium
- ✓Use surge alerts and intra-day updates to capture last-minute spikes, apply open pricing by channel and room segment, and maintain human oversight to improve revenue and margin.Effort: lowImpact: high
Tools & Resources
- →PriceLabs, RoomPriceGenie, Atomize, Cloudbeds PIE: Leading options for small hotels include PriceLabs, RoomPriceGenie, Atomize, and Cloudbeds PIE.
- →PriceLabs: PriceLabs recommends prioritizing forecasting accuracy when choosing a cloud RMS and pairing it with a dynamic pricing engine.
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