Here’s how—imagine this—a corporate guest wraps up a successful meeting and prepares to check out from your hotel. As he approaches the front desk to settle his account, the last thing you want is a cumbersome payment process overshadowing the quality of their stay.

And this is where the right payment gateway can make a difference. 

They play a pivotal role in ensuring a smooth, secure, and fast financial transaction. The right choice can leave your guests with a positive and lasting impression but one wrong investment can scoop them away from rebooking with you as well as your reputation.

But, how to make the right choice for your property? With so many options available the decision feels like a multiple-choice quiz with no clear answer. 

Well, not anymore. We’re here to simplify it all for you. 

Let’s explore the ins and outs of payment gateways, ensuring you can make the perfect choice for your hotel without any hassle.

Importance of A Reliable Payment Gateway

A payment gateway is a bridge between your hotel’s website or POS system and the financial institutions that process payments. It plays a vital role in ensuring the security of transactions, providing convenience to guests, and ultimately impacting your hotel’s reputation. 

A reliable and efficient payment gateway not only enhances guest satisfaction but also contributes to the overall success of your business. 

It acts as the backbone for a smooth and efficient transaction process, ensuring the security of all your financial transactions. 

Besides, with the increasing trend toward online bookings and digital payments, hotels that integrate effective payment gateways stay competitive in the industry. 

It reflects a commitment to staying current with technological advancements. 

“In fact, the Digital Payments market is expected to witness substantial growth, with the total transaction value projected to reach US$10.64tn in 2024.”

Key Factors to Consider When Choosing a Payment Gateway

Selecting the right payment gateway for your hotel is essential as it significantly impacts both guest satisfaction and the efficiency of your operations. Consider the following factors to ensure you make an informed choice tailored to the unique needs of your property:

1. Security and Compliance

Security should be a top priority when selecting a payment gateway. Ensure that the chosen gateway complies with the Payment Card Industry Data Security Standard (PCI DSS) to safeguard sensitive customer information. 

Strong encryption and authentication mechanisms are vital to protect both your hotel and your guests from potential fraud. 

2. Regional Compatibility

Consider the geographic compatibility of the payment gateway. Ensure that it supports transactions in the country or regions where your hotel operates. Some gateways may have limitations or additional fees for certain geographical areas, so it’s crucial to choose one that aligns with your hotel’s footprint. 

For example, in China, where cashless payments are gaining popularity, it’s essential to choose a gateway that supports local payment options like AliPay and QR code payments to cater to the preferences of the guests. 

3. Transaction Processing

Today’s guests have diverse preferences when it comes to payment methods. Consider the variety of payment methods the gateway supports.

 As the hospitality industry becomes more globalized, offering a diverse range of payment options can attract a broader audience. Credit and debit cards, mobile payments, and online wallets are some of the popular payment methods to consider. 

4. Seamless Integration 

Choose a payment gateway that seamlessly integrates with your property management system (PMS), booking engine, and restaurant software. An advanced payment terminal seamlessly integrates with your chosen payment gateway and hotel management system, creating a cohesive ecosystem. 

Consider this integration as the digital harmony between various components of your hotel’s operations. For instance, payment gateway Stripe is known for its developer-friendly features, ensuring a smooth synchronization between your booking system and payment processing.

5. User Experience

A user-friendly interface is key to enhancing the overall guest experience. Imagine your guests navigating through a convoluted payment process – it’s not just inconvenient, but it can also lead to abandoned bookings. Opt for a payment gateway that offers an intuitive and streamlined interface. 

6. Multi-Currency Support for Global Guests

If your hotel attracts an international clientele, a payment gateway with multi-currency support is essential. Consider this feature as a way to cater to the diverse preferences of your global guests. 

Razorpay, for example, facilitates multi-currency transactions, ensuring that guests can pay in their preferred currency, thereby enhancing their booking experience. 

7. Fees

Assess the transaction fees associated with different payment gateways. The goal is to find a provider offering competitive rates without compromising on service quality. Think of this aspect as optimizing your operational costs while delivering a transparent payment experience for your guests. 

Compare the transaction fees associated with different payment gateways. Find a balance between competitive rates and the quality of service provided. 

Additional Features and Support

Beyond the fundamental functions of processing payments, the differentiating factors among payment gateways often lie in the additional features they offer and the level of support provided. Here’s an exploration of these crucial aspects:

1. Analytics and Reporting

Consider payment gateways that provide robust analytics and reporting tools. Access to detailed transaction data and insights can aid in making informed decisions, optimizing pricing strategies, and enhancing overall financial management.

2. Customer Support 

A responsive and efficient customer support system is invaluable. Opt for a payment gateway that offers 24/7 customer support. Quick resolution of issues ensures minimal disruption to your hotel’s operations and maintains a positive guest experience.

3. Customization Options

Explore payment gateways that offer customization options to align with your hotel’s branding. This includes the ability to tailor the payment interface, receipt formats, and communication templates to create a consistent and professional image. 

Comparing Different Payment Gateways

Selecting the best payment gateway for your hotel involves a nuanced evaluation of various options available in the market. Here’s a closer look at some of the leading payment gateways:

PayPal

Recognized globally, PayPal is a versatile solution suitable for hotels of all sizes. It offers a secure and user-friendly platform with widespread acceptance. Paypal is a widely recognized and trusted brand, popular with international guests. It can integrate with various booking platforms but may lack specific hospitality features. 

Stripe

Known for its developer-friendly features, Stripe is an excellent choice for hotels seeking scalability and customization. It seamlessly integrates into various systems and provides a robust payment infrastructure. 

Square

With a reputation for simplicity, Square is a user-friendly option, especially suitable for small to medium-sized hotels. Its transparent fee structure and ease of use make it a popular choice for businesses starting with digital payments.

Authorize.Net

A reliable and established payment gateway, Authorize.Net stands out for its robust security features and versatile integration options. It’s a trusted solution that has been serving businesses across industries for years.

Razorpay

Emerging as a leader in the payment gateway landscape, Razorpay is known for its seamless integration capabilities and secure transactions. It provides a comprehensive suite of features, making it a preferred choice for businesses looking for a modern and reliable solution.

When comparing these gateways, consider the factors mentioned above. Each gateway has its strengths, and the choice depends on your hotel’s specific requirements and preferences.

A New Dawn for Your Payment Process

Selecting the right payment gateway is only half the battle. The synergy between the payment gateway and a reliable payment terminal is the key to achieving a seamless transaction experience. They go hand-in-hand. 

One such advanced payment solution is eZee Pay, crafted for the unique needs of hoteliers. Supported by various trusted payment gateways, eZee Pay brings a tailored solution that goes beyond conventional payment processing. With PCI DSS compliance and advanced encryption measures, rest assured that every transaction is safeguarded against potential threats. 

Explore the possibilities with eZee Pay – a comprehensive payment solution to seamlessly manage hotel and restaurant payment processing with the utmost emphasis on customer experience and security. 

Make the smart choice for your business today! 

The post Hotelier’s Guide to Choosing the Right Payment Gateway appeared first on eZee Absolute.

In recent years, India has witnessed a significant transformation in its tax administration and compliance procedures. One of the most important processes among them is the introduction of Electronic Invoicing, commonly referred to as E-Invoicing. 

E-invoicing is a digital method of generating, sharing, and reporting invoices between businesses and tax authorities. It aims to streamline the invoicing process, enhance transparency, and curb tax evasion. 

It promotes compliance by reducing errors and preventing the manipulation of invoices. It enhances the accuracy and reliability of financial data, leading to a more transparent and accountable taxation system.

E-Invoicing Requirements in India

The Indian government introduced E-Invoicing as a part of its larger digitization and simplification initiatives under the GST framework.

Electronic invoicing is intricately linked with the GST, a comprehensive tax system that replaced a plethora of indirect taxes in India. GST mandates businesses to maintain proper records of their transactions, and E-Invoicing serves as a pivotal tool to fulfill this requirement. 

For hotels and businesses in the hospitality sector, adhering to E-Invoicing requirements in India is crucial for a smooth and hassle-free operation. E-invoicing is mandatory if your hotel’s annual turnover exceeds a certain limit, which might vary as per the latest GST regulations, currently which is Rs 5 crore. 

These GST e-invoices must have a special reference number and a QR code, making it easier for tax authorities to verify them. You must meet these requirements to avoid penalties, which can be quite a headache for hotels. 

But the good news is, today there are countless software available in the market that comply with the government’s regulations and automate the e-invoicing process. 

One such software is Saral.

What is Saral E-Invoicing?

Saral is a third-party software that can be integrated with your hotel management software to automate the e-invoicing process. It streamlines the process of generating, sharing, and managing E-Invoices in compliance with the GST regulations in India.

This integration automates GST return filling and offers paperless, error-free, and automated invoicing with no manual inputs. 

This technology ensures compliance with e-invoicing regulations, streamlines financial operations, and enhances guest experiences through efficient and accurate invoicing. By integrating Saral e-Invoicing into hotel software, businesses can elevate their operational efficiency while maintaining regulatory standards.

Benefits of Integrating Saral E-Invoicing

Along with automating your GST e-invoicing process, Saral e-invoicing allows you to cancel or edit any previously generated invoice. Its user-friendly interface makes GST return-filling convenient without any to and fro between multiple solutions. 

It lets you import and download e-invoices with QR codes and minimizes the possibility of audits and surveys by tax authorities. Saral also has accounting and billing packages for you. 

Summing it up, the key benefits of Saral are:

• Integrates and automates GST return filing.
• Automatically generates E-Invoice.
• Download and print invoice with QR Code.
• Cancel the uploaded invoice anytime.
• Lesser possibility of audits/surveys by the tax authorities.

Now that you know how beneficial Saral is for your business, let’s understand how you can integrate Saral to your system.

How to Integrate Saral E-Invoicing?

Saral e-invoicing is super easy to incorporate. You need no technical knowledge, installation or any extensions. To integrate it with your property all you need is a cloud-based hotel PMS.

Sounds very simple right?

So basically, all you need to do is integrate Saral into your PMS and ensure it has access to all your financial data, including transaction records and bills. With this access, Saral generates accurate, automated invoices for every single transaction, ensuring your GST requirements are met.

How can eZee help you integrate Saral E-Invoicing?

With an industry expertise of over a decade, eZee has been one of India’s frontrunners in hospitality technology. Today it offers a plethora of hospitality solutions that are transforming businesses for the hospitality sector— accommodation providers and restaurants. 

Along with its end-to-end encrypted hospitality solutions, eZee has also constantly updated and integrated its solutions to offer users a seamless experience. 

Keeping resonance with this, today eZee offers an integration of its cloud-based hotel PMS— eZee Absolute with Saral e-invoicing. This means eZee Absolute users can directly enjoy the benefits of Saral without any technical installation or hassle, just at a nominal fee. 

The key benefits of this integration are:

Here’s everything you need to know about integrating eZee Absolute with Cleartax.

How to Avail This Integration?

If you are already using eZee Absolute, then all you need to do is contact your account manager to avail of this integration.

And if you are looking to switch your current hotel software with eZee Absolute, we give you ten reasons to do so!

The post Effortless E-Invoicing: Simplify Hotel Billing with Saral appeared first on eZee Absolute.

Well, that’s where “hotel rate types” come into play. They act as the secret ingredient that can help you achieve this fine balance of setting the right price at the right time.

Think of rate types as unique pricing strategies tailored to different scenarios and guest segments. They’re like your toolkit for welcoming all sorts of guests, whether it’s during the bustling peak season or the quieter off-season.

If you’re new to the hotel business or a seasoned pro, understanding these rate types can make a huge difference in your hotel’s financial performance.

In this blog, we’ll break down the various hotel rate types, and how they can benefit your business and provide actionable strategies for you to maximize your revenue and occupancy.

So, let’s dive in!

What are hotel rate types? 

rate types are designed to cater to different guest preferences, needs, and booking behaviours. Each rate type comes with its own set of rules, restrictions, and benefits.

Here are some common hotel rate types:

• Standard Rates: These are the regular rates offered by hotels. They usually come with flexible booking and cancellation policies, allowing guests to make changes or cancel reservations without incurring significant penalties. 

• Non-Refundable Rates: Non-refundable rates are typically lower than standard rates but come with stricter cancellation policies. Guests who choose these rates commit to their reservations and do not receive refunds if they cancel or modify their bookings.

• Advance Purchase Rates: Hotels offer discounts to guests who book their rooms well in advance. These rates encourage early booking and help hotels secure reservations ahead of time.

• Last-Minute Rates: Usually, last-minute rates are discounts offered to guests who book rooms on short notice. They are designed to fill vacant rooms that might otherwise go unsold.

• Package Rates: Package rates bundle room reservations with additional amenities or services, such as breakfast, spa treatments, or tickets to local attractions. These packages provide added value for guests.

• Corporate Rates: Hotels often negotiate special rates with businesses for their employees who travel for work. These rates are typically available to corporate clients and their employees.

• Group Rates: Group rates are tailored for parties booking multiple rooms, such as wedding groups, tour groups, or conference attendees. They often come with specific terms and conditions, including a minimum number of rooms to qualify for the discount.

• Member or Loyalty Program Rates: Many hotel chains have loyalty programs that offer exclusive rates and perks to their members. These rates can include discounts, room upgrades, and late check-out.

Each rate type serves a specific purpose, catering to different guest segments and booking behaviours. Hoteliers can strategically use these rate types to optimize their revenue and occupancy levels, while guests choose the rate type that best suits their travel plans and budget.

Benefits of Using Various Hotel Rate Types

First, let’s delve into the numerous advantages of using various hotel rate types, shedding light on how they not only maximize revenue but also enhance the overall guest experience:

• Catering to Varied Guest Preferences:

Different travellers have varying needs and budgets, and by offering a range of rate types, you can cater to these diverse preferences. Standard rates may appeal to cost-conscious guests, while package deals can entice those seeking value-added experiences. Corporate rates, in turn, cater to business travellers. This diversity ensures that your hotel remains an attractive option for various guest segments, ultimately leading to increased occupancy.

• Boost Occupancy During Off-Peak Times:

Using different rate types can significantly impact your revenue. Through strategic pricing, you can optimize revenue during peak seasons by offering higher rates, and fill rooms during off-peak periods by providing special promotions.

• Enhance Guest Experience:

Package rates that club room reservations with amenities or services such as dining vouchers or spa treatments can enhance the overall guest experience. Guests often appreciate the convenience and value of having everything they need included in one package.

• Compete Effectively:

Having a range of rate types can set your hotel apart from the competition. In a highly competitive market, this flexibility allows you to be agile and responsive to changes in guest preferences and market dynamics. Being able to offer unique deals or negotiate corporate rates with local businesses can give you a significant edge over rivals in your area.

• Ensure Long-Term Viability: 

Diversifying rate types often leads to guest loyalty and repeat business. When guests find rate types that match their needs and preferences, they’re more likely to become loyal customers. This loyalty can translate into repeat bookings and referrals, reducing your reliance on costly marketing efforts and increasing the lifetime value of each guest.

How to Use Different Hotel Rate Types to Maximize Revenue and Occupancy? 

Maximizing revenue and occupancy in a hotel involves the strategic use of various rate types effectively. So, let’s break down how you can use different hotel rate types to earn more and fill up your hotel rooms. 

Start by figuring out the kinds of people who might want to stay at your hotel. Each group of people has different likes and dislikes, as well as how much they can spend. Make sure your prices match what these different groups of people want. Reduce rates during low-demand periods to attract budget-conscious travellers and raise rates during high-demand periods to maximize revenue.

Understand your property’s booking patterns, trends, and guest preferences. Based on that you can adjust your property’s rates accordingly. You can also leverage seasonal promotions and flash sales to generate buzz and boost occupancy during specific periods. 

Hoteliers can also encourage guest loyalty by offering exclusive rates and perks through membership or loyalty programs. Offering competitive group rates and accommodating large bookings can fill rooms during low-demand periods. Thus, different rate types can be adjusted accordingly to maximize your occupancy and drive revenue throughout the season.

Using Automated Tools & Software to Implement Various Rate Types

 A revenue management system (RMS) is a software application that can help you optimize your pricing strategies. RMSs can track demand, forecast occupancy, and set rates automatically. 

An automated revenue management system empowers hotels to make data-driven decisions, adjusting rates dynamically based on real-time factors such as demand, competitor pricing, and historical booking patterns. 

These systems optimize revenue and occupancy by automatically adjusting rates across various rate types. Moreover, reservation management platforms enable hotels to offer a wide range of rate options online, making it easier for guests to find and book the rates that best suit their needs.

A well-implemented revenue management system can be a game-changer for your hotel, automating your complex pricing decisions and ensuring that the right rates are offered to the right guests at the right time. 

“ eZee Mint is one such smart and user-friendly revenue management software that applies intelligent pricing strategies.”

The post Strategies for Maximizing Hotel Revenue through Rate Type Management appeared first on eZee Absolute.

But there was one thing that made Arjun different from us. Whenever he was asked what he wanted to become in life, he would say “Rich” while the rest of us would choose to be a doctor, teacher, or something else. 

Arjun’s answer always brought a roll of laughter in our class. 

Jump to 2023.

I was at a restaurant when I saw Arjun sitting at a table across the room. We jumped in, caught up, and started chatting. Arjun was a hotelier now and I, knowing how difficult it was to make money in today’s market, joked about how his childhood dream of getting rich was now out of the question.

But to my surprise, Arjun said he was living his dream as his hotel’s ROI is always high!

I thought he was joking at first but then he spilled the beans. 

Dynamic Pricing Strategies was his magic trick!!

Well, I have had some idea about dynamic pricing but I couldn’t let him go without knowing his secret. 

In this blog, I will discuss everything Arjun told me (and what I know now) about dynamic pricing for hotels and how you can make the most out of it to mint revenue for your business. 

Let’s start with the basic question—

What is Dynamic Pricing?

Dynamic pricing is like a flexible price tag for products or services that can change depending on different factors. Think of it as a “smart” price that goes up or down based on what’s happening at the moment.

Imagine you’re purchasing a plane ticket. You might notice that the price isn’t the same all the time. That’s because airlines use dynamic pricing. If a lot of people want to fly on a specific day or route, they strategize and hike prices. But if there are plenty of empty seats, you might see lower prices to attract more travellers.

Hotels use dynamic pricing too. They adjust room rates based on things like demand (how many people want to stay), the time of year, and even how close it is to your check-in date.

In simple terms, dynamic pricing is like a chameleon for prices, changing to match what’s happening in the world around it. It’s all about finding the right price at the right time. 

How Can Hotels Use Dynamic Pricing Strategies?

Dynamic pricing is an important aspect of revenue management and is one of the most innovative hotel pricing automation technologies that hoteliers cannot miss. It lets you adjust your room prices based on what is happening around you.

When there’s high demand, during holidays or major events, hotels might increase prices slightly. Conversely, when demand is low, they often lower prices to attract more guests. It also depends on when a booking arrives. If it’s last minute and there are still empty rooms close to the arrival date, hotels may offer lower rates. But if the demand is high, then prices will surely spike up.

You can also make the most out of seasonal fluctuations with dynamic pricing. Hotels can also use dynamic pricing to curate attractive packages. Thus, dynamic pricing is a multi-dimensional tool that ensures your hotel remains competitive and financially sustainable in a constantly evolving industry.

Now that you know how you can make use of hotel dynamic pricing strategies, let’s understand its benefits.

Benefits of Dynamic Pricing for Hotels

Dynamic pricing is a blessing for the hospitality industry. Here are the benefits of leveraging it—

• Saves Time

You must be thinking determining prices based on season, time of arrival, occupancy, and many other factors must be so time-consuming. But no! 

Dynamic pricing AUTOMATICALLY sets the best price for your hotel room taking into consideration all the above factors! Meaning— you don’t need to spend hours chunking complex numbers, the system does all the work for you.

• Optimizes Revenue

For hoteliers, the bottom line is THE most important thing, and dynamic pricing works as a potent weapon to pursue that. Dynamic pricing software analyzes a plethora of data, enabling you to set the right price for your rooms at any given moment. 

It operates with precision, tailoring room rates in real-time to the current market dynamics. During high-demand periods, prices can be strategically increased to maximize revenue potential, while during low-demand times, competitive rates are offered to ensure full occupancy and prevent revenue loss.

What sets dynamic pricing apart is its continuous monitoring and adjustment, ensuring that your rates stay competitive in a fluctuating market. Hotel dynamic pricing strategies empower you to consistently find the right pricing balance, attracting guests and optimizing revenue for your hotel’s long-term success.

• Reduces Cost

Dynamic pricing is also a cost-saving strategy for hotels. It achieves this by optimizing resource allocation—ensuring rooms are priced correctly according to demand, thereby preventing the wastage of resources on unoccupied rooms and excessive staffing. 

During periods of low demand, dynamic pricing enables competitive pricing to fill rooms, reducing the need for costly marketing campaigns. Additionally, automation through dynamic pricing software not only streamlines the pricing process but also saves valuable staff time, which can be directed toward more productive endeavours. 

By avoiding pricing errors and relying on data-driven decisions, dynamic pricing helps hotels enhance their financial efficiency while maintaining profitability

• Precise Pricing

This powerful hotel dynamic pricing strategy leverages real-time data analysis to pinpoint the perfect price for your hotel rooms at any given moment. It takes into account variables such as demand fluctuations, local events, and market conditions, allowing you to set rates with surgical precision. 

The result? 

You avoid the pitfalls of overpricing, which might deter potential guests, and underpricing, leading to revenue loss. Instead, dynamic pricing ensures that your room rates align precisely with market dynamics, maximizing revenue while delivering excellent value to guests. 

It’s the tool that fine-tunes your pricing strategy to perfection, helping your hotel thrive in a competitive industry.

• Flexibility

In the dynamic world of hospitality, adaptability is crucial, and dynamic pricing embodies this flexibility to its core. This strategy empowers hotels to adjust room rates in response to ever-changing market dynamics swiftly. Whether it’s a sudden surge in demand for a local event or an unexpected dip in occupancy, dynamic pricing allows hoteliers to pivot and fine-tune pricing strategies on the fly. 

This adaptability ensures that you stay competitive and responsive, catering to the needs and expectations of your guests. With dynamic pricing as your ally, your hotel gains the agility to seize opportunities and navigate challenges, all while maintaining profitability. This flexibility keeps your hotel a step ahead in an ever-evolving industry.

• Competitive Edge

In an industry that is so fiercely competitive, gaining a competitive edge can be the difference between thriving and merely surviving. Dynamic pricing emerges as a strategic ally in this pursuit. 

By constantly analyzing market conditions, demand patterns, and competitor rates in real-time, dynamic pricing ensures that your hotel remains not only responsive but also ahead of the competition. It enables you to set rates that are not just competitive but attractive, enticing guests to choose your establishment over others. 

This competitive edge is not static; it’s dynamic, adjusting to the ever-changing market dynamics, giving your hotel the upper hand in securing bookings, maximizing revenue, and ultimately achieving long-term success in a crowded marketplace.

Now that you know how hotel dynamic pricing strategies work and what benefits it has in store for you, let’s look into the dynamic pricing tools and software available in the market for hotels. 

Dynamic Pricing Software for Hotels

Hotel dynamic pricing software automates the pricing process, saving your staff time and reducing the margin for error in manual adjustments. It empowers hoteliers to fine-tune their pricing strategies continuously. With the aid of such tools, hotels can set rates that are not only precise but also responsive to market dynamics. 

But with so many tools available in the market, it is very difficult to choose the correct one that fits your property’s needs. In this case, what you can do is opt for software that comes with a free trial. This will help you make an informed decision and save your hard-earned money. 

Features to Look Out for in A Dynamic Pricing Software

Along with that here are a few features that a good dynamic pricing software must have—

• Booking Pattern Analysis: An ideal dynamic pricing tool that analyses your booking patterns from historical data to suggest the best optimization strategy.
• Competitor Rate Analysis: It keeps an eye on your competitors’ rates across various OTAs and provides insights into competitor pricing strategies.
• Intelligent Pricing Engine: A good dynamic pricing software comes with an intelligent pricing engine that makes sure you get the best price for your inventory every time.
• Automated Reports: Reports are a must for dynamic software. They give you an idea of how your property is performing and the changes you need to make. 
• Personalizations: This feature enables you to create personalized pricing strategies that are tailored to specific customers, including discounts, packages, etc. 
• Integration: A dynamic pricing tool needs to be integrated with other solutions, like Channel Manager, for synchronization of prices and data flow.

Here’s a revenue management software based on dynamic pricing that has all the features mentioned above, plus more, and even comes with a free trial! Check out today!

Once you have chosen the right dynamic pricing tool for your property, it is time to launch a successful strategy for your hotel. 

How to Implement a Dynamic Pricing Strategy at Your Hotel

To get started with dynamic pricing at your hotel, begin by setting clear pricing objectives. Decide if you want to increase revenue, optimize room occupancy, cater to specific guest segments, or improve overall profitability. Once your goals are defined, gather relevant data such as booking patterns, competitor rates, and market trends to make informed decisions. 

Choose the right dynamic pricing software that suits your hotel’s needs, ensuring they offer the features mentioned above. Develop pricing rules based on the collected data, outlining how rates should adjust based on demand, lead time, and market conditions.

Continuously monitor your pricing strategy, stay flexible to adapt to market changes, and regularly refine your approach to optimize revenue. Dynamic pricing is about finding the perfect price at the right time, allowing your hotel to remain competitive and financially resilient.

FAQs

1. How does dynamic pricing work in the hotel industry?

Dynamic pricing in the hotel industry involves real-time monitoring of factors like demand and competitor rates. Prices are then adjusted accordingly, going up during high-demand periods and down during low-demand times to optimize revenue.

2. Do all hotels use dynamic pricing?

No, not all hotels use dynamic pricing. While it’s a common strategy and is highly recommended, its adoption varies among hotels, with many factors like size, location, and market segment influencing the decision.

3. What are the factors to consider for dynamic pricing?

Factors to consider for dynamic pricing include demand fluctuations, competitor rates, seasonal patterns, local events, lead time, and historical booking data. These elements help hotels make informed pricing decisions in real-time.

4. Do businesses other than hotels use dynamic pricing?

Yes, businesses beyond hotels use dynamic pricing. It’s employed in various industries like airlines, e-commerce, ride-sharing, and entertainment to adjust prices based on demand and market conditions.

5. Is dynamic pricing software expensive?

The cost of dynamic pricing software varies widely depending on factors like features, complexity, and the provider. Some options can be expensive, while others offer more budget-friendly solutions. It’s essential for businesses to choose software that aligns with their needs and budget.

The post Elevating Hotel Profits: A Deep Dive into Dynamic Pricing appeared first on eZee Absolute.

Streamlined hotel operations can significantly impact a hotel’s bottom line by enhancing guest retention, attracting positive reviews, and optimizing resource utilization. From the moment a reservation is made to the final farewell, the intricacies of hotel operations dictate the level of comfort, satisfaction, and delight experienced by each guest.

In this blog, I have listed the most essential segments of hotel operations that must be improved to enhance the guest experience. Let’s jump right in.

How Efficient Operations Shape Guest Experiences?

Hotel operations play a crucial role in defining the guest experience. They ensure that guests experience a seamless, enjoyable stay without facing any trouble. 

When operations are streamlined and fine-tuned, it resonates in your guests’ satisfaction, the positive reviews they leave, and the loyalty they develop toward your property. 

Moreover, improved operations help to optimize resources, save your hard-earned money, and increase profitability for your hotel. 

Therefore, the pursuit of operational excellence isn’t just a choice; it’s the foundation of success.

Now that is something we are looking for. Aren’t we?

Without further ado, let’s explore the various segments of hotel operations that must be enhanced to make your property stand out in this competitive market.

10 Ways to Improve Hotel Operations

From check-in to check-out, and everything in between, hotel operations are the backbone of your business. 

Here are ten of the best hotel improvement ideas for operations at your hotel—

1. Staff Training and Development

Well-trained and motivated staff members are the heart and soul of a hotel’s operations. This is why comprehensive staff training creates a sense of purpose, a commitment to service excellence, and a deep understanding of the hotel’s ethos. 

When employees are empowered with the right knowledge and skills, they’re better equipped to handle challenges, resolve issues, and create memorable moments for guests. This leads to higher job satisfaction, reduced turnover, and a cohesive team that works harmoniously across departments. 

Regular training sessions that address changing guest preferences, new technologies, and evolving industry trends ensure that staff remains up-to-date and adaptable.

2. Embracing Technology

Integration of technology isn’t just an option; it’s a necessity to stay competitive and provide guests with the level of convenience and efficiency they expect. Technology in hotel operations not only enhances the guest experience but also streamlines internal processes.

But today the hospitality market is flooded with numerous tech solutions and hoteliers often don’t understand which solution to choose. 

Let me get that for you.

One such software your property needs is a cloud-based Property Management System (PMS). It enables seamless reservation management, guest check-ins, and check-outs, reducing wait times and ensuring a smooth flow of guests through the property. 

When we talk about the benefits of technology in the hotel industry, then they are vast. Efficient inventory management, staff scheduling, housekeeping coordination, in-room entertainment systems, smart room controls(Like Alexa), and digital concierge services(KIOSK) are some that help enhance guest comfort and engagement.

However, while technology is a powerful ally, it’s crucial to find the right balance. Therefore, integrating technology should complement, not replace, the warmth and personal interactions that define genuine hospitality.

3. Efficient Housekeeping Management

Efficient housekeeping management is another hotel improvement idea that doesn’t just contribute to guest comfort, but also impacts the hotel’s overall reputation. It starts with well-defined protocols for maintaining cleanliness and order. 

Regular cleaning schedules, standardized procedures, and careful attention to detail ensure that guest rooms and public areas are consistently spotless and inviting. You can schedule housekeeping services based on guest arrivals, departures, and special requests.

Clean, well-maintained rooms and common areas leave lasting positive impressions, leading to good reviews and word-of-mouth recommendations. Conversely, subpar housekeeping can quickly sour guest experiences and tarnish the hotel’s image.

Beyond guest perceptions, effective housekeeping management plays a pivotal role in resource optimization. Proper inventory control of cleaning supplies and linens minimizes waste and reduces operational costs. Moreover, well-managed housekeeping schedules lead to productive staff allocation and contribute to the overall smooth functioning of the hotel.

9 Best Practices to Optimise Hotel Housekeeping Operations 

4. Streamlined Check-in and Check-out

The first impression a guest has of a hotel often revolves around the check-in and check-out processes. It demonstrates a hotel’s respect for its guests’ time.

Modern travelers appreciate the flexibility of online check-in. By offering this option, you enable guests to complete necessary formalities before arriving, reducing wait times and making the check-in process more efficient. You can also streamline your check-in process by balancing between personalized service and self-service options, guests can choose from face-to-face encounters and self-service KIOSK. 

Streamlined check-in allows your guests to quickly transition from travel to relaxation mode, and from the hotel experience back to the outside world without any delay.

By optimizing these key touchpoints, you can showcase your commitment to guest-centric operations and create a lasting impression of professionalism and care.

5. Personalized Guest Services

Your guests crave personalized interactions that make them feel valued and understood. Personalized guest services are the key to forging emotional connections and creating memories that linger long after check-out. 

The foundation of personalized guest services lies in understanding individual preferences. This goes beyond knowing room type preferences; it involves comprehending dietary restrictions, special occasions, and even preferred room temperatures. By leveraging guest profiles and historical data, hotels can tailor services that align with each guest’s preferences.

Special touches like handwritten notes, personalized recommendations, or surprise treats elevate the experience and create a sense of emotional connection.

Personalized guest services not only enhance the quality of the stay but also result in guest loyalty. When guests feel that their unique needs and preferences are acknowledged, they’re more likely to return and recommend the hotel to others.

6. Effective Revenue Management

In the hospitality industry, revenue management is essential as it involves setting prices, optimizing bookings, and maximizing profitability. It’s not just about filling rooms; it’s about understanding market dynamics, guest behaviors, and economic trends to make informed decisions that benefit both guests and the hotel’s bottom line.

Effective revenue management involves adjusting room rates based on real-time demand. During peak seasons or high-demand periods, prices can be adjusted upwards, while discounts or promotions can be offered during off-peak times to attract more bookings. 

You can offer packages that bundle accommodations with experiences like spa treatments or dining, to encourage guests to upgrade their stay. Promotions, such as extended-stay discounts or inclusive packages, provide added value that can entice guests to choose your hotel over competitors.

Pick the Hotel Revenue Management System That Has These Features 

When executed thoughtfully, revenue management becomes a powerful tool that enhances a hotel’s ability to provide exceptional experiences while creating a sustainable and thriving business.

7. Energy and Resource Efficiency

With growing environmental consciousness, energy and resource efficiency have emerged as strategic pillars for successful hotel operations. Hotels that prioritize sustainability aren’t just reducing their carbon footprint; they’re also optimizing costs, enhancing hotel’s guest experiences, and shaping a positive brand image.

Efficiency in energy consumption is a vital step in minimizing a hotel’s environmental footprint. From LED lighting to smart HVAC systems, energy-efficient technologies can significantly reduce energy consumption, leading to lower operational costs and reduced environmental impact. 

Conserving water and managing waste effectively contribute to both environmental and financial sustainability. By implementing low-flow fixtures, rainwater harvesting, and waste diversion programs, hotels can minimize resource waste and promote responsible resource consumption.

Demonstrating a commitment to sustainability through energy-efficient practices not only appeals to eco-conscious travelers but also enhances a hotel’s overall reputation.

Hotels that prioritize energy and resource efficiency send a message of responsibility and forward thinking. This is vital as it resonates with guests who seek out establishments that align with their own values, leading to increased guest loyalty and positive word of mouth.

8. Security and Guest Safety

Creating an environment where guests feel safe and well cared for not only safeguards their well-being but also cultivates trust, peace of mind, and a sense of comfort that defines a truly exceptional stay. 

Utilizing modern surveillance technology and access control systems is a proactive step toward preventing security breaches. 

These measures not only deter potential threats but also provide invaluable information in the event of an incident.

Additionally, regular staff training ensures that employees are well-equipped to respond swiftly and effectively during emergencies, creating an environment where both guests and staff feel protected. 

Guests who feel safe are more likely to enjoy their stay without undue worries. A secure environment fosters a sense of comfort and trust, allowing guests to fully immerse themselves in the experience and create lasting memories.

9. Feedback and Continuous Improvement

Guest feedback is an invaluable tool for growth and refinement. As guest preferences and expectations evolve, so must hotels. Embracing feedback as a catalyst for continuous improvement is a mindset that propels hotels toward excellence, allowing them to adapt, innovate, and deliver even more exceptional experiences to their guests.

It is a direct line to understanding their perceptions and expectations. By actively seeking and listening to their voices, hotels gain insights that can guide operational enhancements and strategic decisions. 

Hoteliers need to understand that negative feedback doesn’t signify failure; it’s an opportunity for growth. Instead of shying away from criticism, hotels that embrace it as a chance to rectify shortcomings demonstrate a commitment to guest satisfaction and ongoing improvement. 

Analyzing trends and patterns in guest feedback provides a data-driven approach to identifying areas that require attention and resources. Feedback serves as a barometer of these changing needs, enabling hotels to adapt their offerings, services, and amenities to align with current trends.

10. Collaboration and Team Communication

The success of a hotel isn’t just the result of individual efforts; it’s the product of a cohesive team working in harmony to deliver exceptional experiences. 

Regular team meetings, digital communication platforms, and open-door policies foster a culture of sharing ideas, insights, and concerns. Cross-departmental coordination ensures that all aspects of a guest’s stay, from reservations to housekeeping to dining, are orchestrated to perfection. 

When teams from different departments collaborate to address challenges, innovative solutions are often the result. This proactive approach prevents issues from escalating and ensures swift resolutions. Moreover, a culture of teamwork and clear communication nurtures employee morale and job satisfaction. 

Collaboration and team communication are the secret ingredients that transform a group of individuals into a cohesive force that not only runs a hotel but ensures that every guest experience is marked by professionalism, efficiency, and the kind of warmth that leaves a lasting impression.

Conclusion

In a dynamic landscape, it’s the hotels that adapt, innovate, and consistently strive for operational excellence that truly stands out. 

By implementing these hotel improvement ideas, you aren’t just offering a place to stay; you are creating lasting memories and forging connections that extend beyond the duration of a guest’s visit.

With improved and streamlined operations at your property, you will not only deliver a better experience to your guests but will strengthen the future of your property. 

The post A Roadmap to Enhanced Hotel Operations: 10 Strategic Insights appeared first on eZee Absolute.

]]> https://www.ezeeabsolute.com/blog/10-ways-how-to-improve-hotel-operations/feed/ 0 https://www.ezeeabsolute.com/blog/pricing-strategies-to-increase-hotel-revenue/ https://www.ezeeabsolute.com/blog/pricing-strategies-to-increase-hotel-revenue/#respond Fri, 27 Jan 2023 07:52:03 +0000 https://www.ezeeabsolute.com/blog/?p=12657 Want to optimize your hotel revenue? Then check out this blog to understand and explore unique pricing strategies with a whole new perspective.

The post Secrets to Boost Your Hotel’s Revenue: Pricing Strategies You Need to Know appeared first on eZee Absolute.

]]> I always get thrilled by how much money hospitality leaders or successful businessmen make. No doubt, the exact numbers would be overwhelming. But the efforts that go behind it are no less.

To reach such heights in terms of profit or revenue generation one needs to have immense knowledge of the hospitality industry and its marketplace. (As knowledge alone creates all the difference.)

This is why every hotel owner puts a lot into serving its guests but only a few get an impressive revenue collection. 

Most of the time, this happens because of the fragile pricing strategies hoteliers set up without analyzing guests’ behavior and insights into the latest marketing techniques.

In one of our old blogs, we previously discussed various pricing strategies that hotels should be aware of. But in this article, I aim to expand upon that list and delve into some more unique pricing strategies to help you level up your revenue generation game.

So get ready and follow along if you want to attain excellence in the revenue department of your hotel.

Table of Content

1. Why Is It Important to Set Pricing Strategies?
2. Pricing Strategies to Optimize Your Hotel Revenue
• Value-based pricing
• Package pricing
• Captive product pricing
• Market-penetration pricing
• Psychological pricing
• Promotional pricing
3. Dynamic Pricing to Ace Your Strategic Game

Why Is It Important to Set Pricing Strategies?

The sole purpose of any pricing strategy is to optimize your revenue.

Let me be clear that setting prices on your rooms and services doesn’t count as a pricing strategy. It is how you mold and manipulate your prices according to the market scenario and your guests.

Let’s examine this with a scenario:  

All the hotels near your property are struggling through the shoulder season. To stay afloat and drive more bookings, they cut down their prices, whereas you kept them intact. Turns out, they came out well and you experienced a great loss.

Therefore, you cannot just put up the prices and let it be. It is a process that needs constant revision. You must have a great sense of the current market and ongoing trends in price modulation to do so.

 But I’ve got it all covered in the next section Let’s hop in, shall we?

Pricing Strategies to Optimize Your Hotel Revenue

Hotel revenue management is a tricky affair and there’s no single magic formula to optimize it. You require a blend of various strategies to ripe out the maximum benefits.

This is why I am mentioning some unique tactics for you to skyrocket your hotel revenue. 

1. Value-based pricing

The simplest pricing strategy is value-based. It is the cost that your service must get in return.

For example, a smoking room will have more price than a non-smoking room because it has an additional service that tops up its value. Same way, beach-facing rooms will have more value and thus more price.

So, what you are providing to your guests, how much that particular service costs you, or its value range across the market decides this type of pricing.

Value-based pricing is never negotiable. Because it drives you the minimum profit your rooms & services deserve.

2. Package pricing

Nowadays travelers lookout for good packages instead of arranging things separately. So it is important to build your packages and let your guests avail them at the right prices.

By including taxi/cab rides, complimentary meals, a local guide or tour, co-working spaces, a spa, laundry facilities, and much more in a package, you can make comparatively high revenue.

What you do is: keep a room booking, let's say at ₹8,457 for a week (high from its usual value), and a package with all the facilities at ₹9,849. Your guest will perceive that within a minor difference, they’re getting so many things.

Most of the time, they do not require all of these facilities but still tend to get overwhelmed by them and sign up willingly.

Even if they use them all, it is anyway beneficial for you. Because it helps in upselling your services.

3. Captive product pricing

Captive product pricing is to set a combined price for two or more services that are co-dependent.

For example, an ordinary room costs ₹5,000, and using the swimming pool has an additional charge of ₹800 which makes the total ₹5,800. However, if you choose a poolside room that costs ₹5,600 then there are no additional charges for using the pool.

This is how you can increase the sales of your poolside rooms. So every person who wishes to swim will ultimately buy your poolside room that costs high.

This pricing helps you increase the sales of your best rooms by adding a complementary thing to them.

4. Market-penetration pricing

When you introduce a new service or upgrade your hospitality, it is important to make it popular and known among your guests. This is the only way to make it win its place in the market.

To give this new service optimum exposure, you need a market-penetration pricing strategy according to which, you must keep it partially free at the start and increase the price with time.

If you have opened an in-house restaurant at your hotel, you can keep the first meal free for all your guests. This will market your restaurant effectively and its sales will increase fast.

5. Psychological pricing

A psychological pricing strategy is important for attracting your guests. It makes your price look good and affordable.

This price plays with your guests' psychology and convinces them that it is reasonable. The basic example is putting ₹999 for the swimming pool charges instead of ₹1000. This difference of one number somehow creates a lot of differences in the human brain.

Besides this, promoting offers and discounts is also a psychological game that excites your guests. They give in quickly if you showcase that a ₹9,899 package is available at only ₹7,599 if they book within a day. Note: This is how you make sales in your shoulder season.

Learn more about aligning your marketing strategies with your guest’s psychological responses below.

Psychological Principles for Better Hotel Marketing

6. Promotional Pricing

This is the average and the comparatively lowest price you use to promote your hotel. It helps attract your guests to your website. With this, they explore other things you offer and increase your chances of getting bookings.

So if the lowest room or package that is available at your hotel is ₹1,899 and the highest package is ₹10,899 then your promotional price must be the former one that is lowest.

It will amaze your guests that your packages are starting at such affordable prices and thus, they will visit your website. This will drive more traffic to your website and will increase your bookings and revenue altogether.

 Promotional pieces are mostly the one that highlights the least starting prices of your rooms.

Dynamic Pricing to Ace Your Strategic Game

All the strategies I discussed above are proven for optimizing your revenue.

But what is the real foundation for them?

Dynamic pricing!

The marketplace is ever-changing. What is selling out this week might not get any attention in the upcoming weeks. Therefore, you need to change every instant. (I am not exaggerating)

Recently when I was planning to book a homestay through an OTA platform, I was amazed at how quickly the price was fluctuating.

When I visited this XYZ property many times, its price went up within hours because they tracked that I am interested in it and will book eventually. After that, I started exploring other properties for a couple of days. Guess what! The rate of that XYZ property dropped again.

A dynamic pricing strategy analyzes every aspect of the marketplace and sets an ideal price for your services. It keeps fidgeting rooms’ prices across all your online profiles. This fluctuation in price ensures maximum profit at any given time.

But making all these calculations and analyzing the prices manually is NOT easy. You need a perfect revenue management system to do so. You can check out eZee Mint which streamlines the process of setting intelligent pricing strategies at the right time to optimize your revenue.

Conclusion

With the ease of transportation and availability of every facility, even in remote places, traveling has become everyone’s passion. And the hospitality industry is at its golden age, serving this immense demand.

Everything is in its favor. Hoteliering has the potential that has no limits. It’s just that hoteliers need to understand how to set up their strategies and make the most of this opportunity.

If you are a small hotel, it is more important for you to build yourself up. Therefore, one thing that you need is a handsome amount of money. And trust me, with these hotel pricing strategies (along with the ones we mentioned before), you are off to a wealthy start for your business.

The crucial point you must note from this blog is not to keep a single strategy, keep them all handy. Only when you put together their permutations and combinations will they result in a strategy that deals with your revenue collection as a whole.

Do leave a comment below, to let me know your opinions and experiences around hotel pricing strategies.

Happy Hoteliering!

 

The post Secrets to Boost Your Hotel’s Revenue: Pricing Strategies You Need to Know appeared first on eZee Absolute.

]]> https://www.ezeeabsolute.com/blog/pricing-strategies-to-increase-hotel-revenue/feed/ 0 https://www.ezeeabsolute.com/blog/hotel-revenue-management-myths/ https://www.ezeeabsolute.com/blog/hotel-revenue-management-myths/#respond Wed, 07 Dec 2022 11:16:00 +0000 https://www.ezeeabsolute.com/blog/?p=10501 Hotel revenue management myths are evil. Read this blog as we debunk them and bring back your faith to RM.

The post 9 Common Myths About Hotel Revenue Management. Let’s Debunk Them. appeared first on eZee Absolute.

]]> Revenue management (RM) is supremely necessary for hotels.

While many hotels are making the best out of it to boost their bottom line, some are still thinking of it as a mythical unicorn.

I kid you not, most of the hotels refrain from opting for any sort of revenue management services.

Who is to blame for it?

The hotel revenue management myths that are swirling around are the real reasons hotels are so skeptical about it.

So, I decided to debunk some common myths about revenue management systems and managers and make your life easier. 

Table of Contents

1. Myth #1: Automation will eliminate revenue managers
2. Myth #2: Revenue management is only for mathematics enthusiasts
3. Myth #3: Pricing changes must be handled by revenue managers themselves
4. Myth #4: Revenue management systems are always expensive
5. Myth #5: Budgeting and demand forecasting aren’t important in revenue management
6. Myth #6: Outsourcing revenue management services aren’t worth
7. Myth #7: Overbooking is a curse and should NEVER be used
8. Myth #8: Revenue management doesn’t help hotels already in loss
9. Myth #9: Hotels under construction shouldn’t consider revenue management

Let’s Bust Some Revenue Management Myths

Before going ahead to shoot down all the misconceptions, I have a little something to say.

“Do not shy away from revenue management. It helps you better manage resources, predict customer wants and needs, and come up with the most effective pricing strategies to boost your hotel’s revenue.”

Myth #1: Automation will eliminate revenue managers

With the rate at which automation is invading industry after industry, different viewpoints have emerged in the revenue management community. Many believe that revenue managers’ jobs would be at stake.

However, that’s just one of those hotel revenue management myths.

Although revenue management software is instrumental to many hotels, it is a tool that helps revenue managers do their job much more efficiently, eliminating manual tasks.

For example, a hotel utilises various channels to drive booking. But imagine how tedious it would be to adjust prices across all the distribution channels. This is where a revenue management system comes in; it does the job without having to individually log in to each of those channels.

Revenue managers are at the heart of this entire segment, without their analysis and decision-making capabilities, it is not going to be easy for hotels to reap the best benefits.

So, sit back and relax, revenue managers aren’t going out of the scene.

Myth #2: Revenue management is only for mathematics enthusiasts

When we talk about aspects like pricing, revenue, or budgeting, many think that it is the job of someone who has a strong grip on mathematics.

But in reality, it is not true again. Mathematics is a part of it and not the entire segment. If you’re a mathematician, perfect. If you’re not one, no problem at all, you’re still good to go.

Rather, hotels when hiring revenue managers, look for people who have an understanding of a hotel’s business indicators and possesses analytical thinking.

After all, it is all about predicting guests’ behaviour, optimising room availability, and selling rooms at the right price at the right time to the right guest, thereby maximizing revenue.

Myth #3: Changes in pricing must be handled by revenue managers themselves

Just like the ones who think that automation is going to wipe off revenue managers’ jobs, there is another set of people who have a misconception that price changes cannot be automated.

I really wonder who spreads all these myths of revenue management.

Let me clear this for you.

A revenue manager cannot spend all day logging into various channels and changing prices. That is the reason there are automated revenue management systems that do the job, allowing the revenue manager to focus on making important decisions.

Myth #4: Revenue management systems are always expensive

Another misconception that holds back hoteliers from incorporating a revenue management system is that ‘all these systems are expensive’.

Again, this is not true. Not all revenue management systems are expensive.

This myth has gained momentum because RM services are being adopted majorly by high-end accommodation providers. And this makes the budget players feel that they need a humongous amount of money to reap its benefits.

That’s not all. Initially, large hotel chains and properties were well aware of revenue management and they were quick to opt for it. But many budget hotels have refrained from learning about such strategies.

And I am not making this up at all, because I have had the first-hand experience.

In 2019, I was in Matheran. I booked a nice hotel. The property wasn’t a big one but it was beautiful and gave me a luxurious experience.

I was wondering how come they have not been able to scale. 

They had so much potential — the staff, service, rooms; everything about it was just so perfect.  But despite all of it, they were having a tough time increasing their profit.

A day before my check-out, I had a long conversation with the hotel owner. To be honest, I was surprised to know that he thought revenue management services are only for high-budget hotels as they are expensive.

Not just that. Someone even told him that it’s risky and he’d lose all his money.

So, you can imagine how many such hotels have half-cooked information like this.

Myth #5: Budgeting and demand forecasting aren’t important in revenue management

When it comes to hotel revenue management, budgeting and demand forecasting play a crucial role. And if someone has told you otherwise, you can just let that advice go; it is just one of the myths of revenue management.

While hotel budgeting helps in estimating revenue and expenses, demand forecasting allows revenue managers to predict future guest demand over a defined period.

Demand forecasting, Budgeting, and revenue management are all interlinked. For a smoother and profitable functioning of a hotel, they need to go hand in hand.

Meaning, when you have such information at hand, it gets easier to make informed decisions regarding a hotel.

Myth #6: Outsourcing revenue management services aren’t worth

Whoever has started this myth must have not checked the pros and cons of having revenue management in-house vs outsourcing.

Let me explain this to you with a scenario.

An in-house revenue manager, no doubt, will have a lot of knowledge and experience. But if you look closely, s/he spends most of their time working with only one property i.e. your hotel.

On the other hand, an outsourced revenue manager has more exposure. S/he works with various other hotels and gets a wide view of the industry.  

Meaning, they are skilled and have carefully developed techniques that help you improve your bottom line.  

Investing to outsource revenue management services is absolutely worth it. Just make sure the service provider has a proven track record of its work.

Myth #7: Overbooking is a curse and should NEVER be used

Overbooking can make or break a hotel; it is like a double edge sword.

However, calling it useless is one of the huge misconceptions about hotel revenue management.

If you aren’t aware of overbooking, it is a strategy used by revenue managers to acquire more reservations than the number of available rooms to achieve the highest possible occupancy rate.

What does a hotel want? 

100% occupancy rate and better revenue. 

If used cautiously, with proper planning, analysis, and calculation, it can significantly help you achieve the same.

Myth #8: Revenue management doesn’t help hotels already in loss

I am sure many of you have heard this — “You’re already in loss/not making enough revenue. Why would you want to invest in some revenue management service?”

If you have received such advice in the past and believe that revenue management services cannot help hotels in loss, then let me burst your bubble. It is a huge misconception.

The prime job of a revenue manager or a revenue management service provider is to bring you dollars.

Now, if you’re wondering how would you pay for such services? There are a lot of service providers who give you a trial period to test their offerings. You can always opt for them.

Not just that. Many service providers only take payment once they achieve their goal.

So, do look out for such service providers if you’re having a tough time paying upfront.

Myth #9: Hotels under construction shouldn’t consider revenue management

Your hotel is still under construction? No worries, you can still opt for revenue management.

Many hoteliers wait for their hotel to start operations and then go for services like revenue management. However, that shouldn’t be the case. 

A hotel needs to be prepared from day one. And this is exactly what revenue management helps you with.

While the property is still in construction, you can leverage it to learn about the market segment, sales strategies, carry out compset analysis, work on pricing research and processing, and forward planning of market demand cycles.

Do you see how prepared you’re going to be when you cut that ribbon?

Not to mention, if there are provisions, you can actually make changes to your hotel rooms as per what you have analysed. 

Conclusion

Revenue management over the years has become supremely prominent for the hotel industry.

Being in this industry for quite some time now, I have seen a massive number of hotels rely on it to up their revenue. And why not? After all, revenue management walks the talk. It takes your hotel to a level that was once just a dream.

However, because of some misconceptions about hotel revenue management, it has also gained some negative impressions due to some myths. And this is what I exactly tried to clear in the above points.  

I hope this blog changes your perspective on revenue management. And if your hotel has not yet turned to it, do revisit your decision.

Further, these are just a few of the hotel revenue management myths. There are a lot more that needs to be busted. 

Let me know if you would like to have an extension of this blog where I uncover some more misconceptions about hotel revenue management.

The post 9 Common Myths About Hotel Revenue Management. Let’s Debunk Them. appeared first on eZee Absolute.

]]> https://www.ezeeabsolute.com/blog/hotel-revenue-management-myths/feed/ 0 https://www.ezeeabsolute.com/blog/how-to-increase-revenue-for-small-hotels/ https://www.ezeeabsolute.com/blog/how-to-increase-revenue-for-small-hotels/#respond Sun, 31 Jul 2022 11:17:00 +0000 https://www.ezeeabsolute.com/blog/?p=11833 There are many ways in which a hotel can make money. In this article, I will be discussing a few ideas that can help increase revenue for small hotels.

The post This is How You Can Increase Revenue for Small Hotels [Bonus Tip Inside] appeared first on eZee Absolute.

]]> Like any other business, hotels need to generate revenue in order to survive.

But with the ever-growing competition, how can small hotels keep up? How can small accommodation providers keep revenue flowing?

In this article, I will discuss some sales and marketing strategies to increase revenue for small hotels and stay afloat.

Wait, there’s also a bonus. I will also tell you about some revenue-generating ideas for small hotels that don’t include selling rooms.

Sounds good?

So without further ado, let’s find out how to increase revenue in small hotels and help them thrive!

Table of Content

1. Strategies to increase occupancy and revenue
• Pricing
• Group sales
• Destination marketing
• Direct booking
• Partnerships with local businesses
• Property management software
2. Non-room ideas to increase revenue

How to Maximize Revenue for Small Hotels?

There are various ways of generating revenue in the hospitality industry.

However, as a good practice, hotels need to first analyze their current business strategies and determine the scope of implementation of new methods.

Following are some of the fail-safe tactics that accommodation businesses can use to improve the revenue flow. And also, as promised, there are some non-room revenue generation sources as well.

Check each of them out and see how you can make the best out of them.

1. Hotel sales strategies to increase occupancy and revenue

1.1 Pricing strategy

Pricing is at the core of a hotel’s overall revenue strategy. If you get this right, you’ll get most things right. 

Here are some of the tactics you might want to try at your hotel:

• Price a little higher than your competitor but offer more extras and add-ons.
• Offer discounts if you often go low on occupancy. However, you might then want to try to generate revenue from other services.
• Try pricing your room based on the cost of running your hotel rather than external factors such as competition.
• Change your pricing depending on demand during specific times of the year.

Note: Before implementing any pricing strategy, run a thorough analysis of your hotel’s current state. And based on the outcome, decide what works the best for you.

1.2 Group sales strategy

Group bookings play an important role to increase revenue for small hotels apart from individual bookings. However, despite the ability to bring in a huge amount of income, group bookings are being overlooked by hotels the majority of the time. That shouldn’t be the case.

Hotels, especially the small ones, should invest a good amount of time figuring out strategies on how to get more group bookings.

The strategies might differ a bit compared to chain hotels, but most of the concept remains the same.

At eZee, we have a dedicated blog on ways to increase group bookings at your hotel, do give it a read if you want to learn the nitty-gritty.

1.3 Destination marketing

Destination marketing is most probably one of the fail-safe methods for small hotels to attract travelers and boost revenue.

For example, Mahabalipuram in Chennai is filled with small hotels and resorts. One thing that is common among all the properties is that they all market the location. And this practice of destination marketing has not only made Mahabalipuram a great attraction for tourists worldwide but has also helped all the hotels generate decent revenue.  

Now, it might seem intriguing and you might want to start right away. But you need to have a strategic approach to this. Try learning about the location in detail, determine the type of tourists who would like to visit there, and look at various other factors.

Once you’re off to good analysis, you can run marketing campaigns for the destination and link your hotel to it.

1.4 Direct booking

Another way to attract more travelers to your small hotel is by offering incentives for direct bookings.

But again, having a hotel website with a booking form isn’t enough to acquire reservations. You need to optimize your website and take care of a few more things.

For example, you can offer incentives to your guests for booking directly with you. How about free lunch for two if booked directly on the hotel website?

Now, there are various other ways to boost your hotels’ direct bookings. You can read the blog mentioned below to learn more.

1.5 Partnerships with local businesses

This is most probably one of the most underrated tactics to generate revenue for your hotel. And I can see it fading from many locations because big hotels think that this conventional tactic isn’t good enough for them.

However, that doesn’t mean it has lost its magic.

Wondering how this works? Let me explain with an example.

Hotel Bell is a small property in the city of Guwahati, Assam. And being a small property it doesn’t have a significant budget for marketing. However, the owner of Hotel Bell is a smart individual. He has partnered with multiple cabs and auto rickshaws that drop and pick up people from the airport, railway station and bus stops.

Now, every time someone takes a cab, the driver always suggests Hotel Bell for them to stay and take them there. In return, what the hotel does is, whenever a guest asks for a drop or pick up, it sends one of its partner cabs.

If this isn’t a win-win, I don’t know what is.

1.6 Leveraging property management software

The importance of a property management system is equal for all hotels, irrespective of their shape and size.

And why not?

Technology has changed the entire hospitality ecosystem and hotels need to stay abreast with the latest hotel tech.

And in the process of adopting tech, a hotel PMS tops the priority list because it is the epicenter of everything related to hotel technology.

A hotel PMS streamlines and automates all the day-to-day operations at your hotel, making it more efficient and increasing guest satisfaction.

So, if you haven’t turned to a hotel PMS yet, it is time. Further, if your current system isn’t delivering any results, then it is time to change it.

We also have a complete guide for hotels to select the right hotel software, do give it a read.

2. Bonus Tips: Non-room ideas to increase revenue for small hotels

When it comes to generating revenue for small hotels, there are various ways for small hotel businesses to leverage. And some of the ideas to bring revenue are non-room sources such as incorporating various services or utilizing extra hotel spaces.

Note: I will just give you an idea of each source as there are multiple of them.

• Banquet hall: Do you have extra rooms that are a little large? Will you be able to serve dozens of people a meal in a timely fashion? If so, you can rent them out for hosting large social and business events.
• Host small events: Now, if you don’t want to rent out a banquet hall, you can simply host and scale events such as stand-up comedy, open mic, and karaoke. You can host these events dedicatedly and sell tickets or you can keep it as a special during a gala dinner.
• Co-working space: People working remotely are increasing rapidly. While some choose to work right from their couch at home, some want to go to a co-working place. Now, how about you turn some of your hotel spaces into a co-working office? Sounds like a plan?
  Read this blog to learn how to go about it: How can hotels adapt co-working culture?
• Restaurant: Food and beverage is a great way to increase revenue for small hotels. You can either start your in-house restaurant where you can let guests dine or you can also open it up for the general public. One more thing you can do is let someone else run a restaurant in your hotel and you can take monthly rent. Cloud kitchen is also a good idea if you have the know-how of this business model.
• Boutique shop: A boutique is a specialized type of retail store that fits a niche market with specialized products. Having a boutique with a more in-demand niche in a hotel is a great source of generating some extra bucks.
• Private label: Speaking of shops, you can even start your private label. Pick a niche and products and sell them with your private label. This is also a great way of brand publicity.
• Health and wellness: Spa, saloon, gym, etc. could also help you generate revenue. How about setting an hourly price for the gym? Keep it reasonable enough and people will visit.
• Pet-friendly services: If it is a pet-friendly hotel, you can establish multiple services. One of the best examples is dog walking. Let your guests hire a dog walker for a price. Or charge hourly for letting dogs in the play area. Not to mention, you can also sell pet food.
• Ride rental: Got some extra cycles on the property? If so, rent them out. People are going to love cycling around the city. You can do that for bikes and scooters as well.

Conclusion

There’s a lot of competition out there in the hotel industry. While big hotels have a lot of money in the bank, small hotels find it a little difficult to compete. However, that doesn’t have to be a stumbling block.

With a little brainstorming and some solid ideas, even small and mid-sized hotels can generate great revenue.

So, if you have been wondering how to increase revenue in your small hotel, try the methods mentioned in this blog and see how they fare for your property.

The post This is How You Can Increase Revenue for Small Hotels [Bonus Tip Inside] appeared first on eZee Absolute.

]]> https://www.ezeeabsolute.com/blog/how-to-increase-revenue-for-small-hotels/feed/ 0 https://www.ezeeabsolute.com/blog/hotel-revenue-management-system-features/ https://www.ezeeabsolute.com/blog/hotel-revenue-management-system-features/#respond Thu, 26 May 2022 07:17:02 +0000 https://www.ezeeabsolute.com/blog/?p=11669 Do you know what makes a revenue management system great for hotels? The blog talks about the features that make it a must-have for hoteliers.

The post Pick the Hotel Revenue Management System That Has These Features appeared first on eZee Absolute.

]]> Revenue management is the talk of the town in the entire hospitality industry. Accommodation businesses from all around the world are significantly doubling down on it.

Not to mention, even I have been a lot more vocal about this sought-after hospitality phenomenon lately. However, there’s still more to cover.

Today, this blog is going to be all things hotel revenue management systems.

I am not just going to give you an overview, but also help you learn about the features that make it worth it, and how you, a hotelier can pick the right system from the right vendor.

Table of Content

1. The Current Scenario of Revenue Management
2. Prominent Features of a Revenue Management System
• Intuitive dashboard
• Multi-dimensional property analysis
• Intelligent pricing engine
• Super detailed reporting
3. The Best Revenue Management System Out There

The Current Scenario of Hotel Revenue Management in The Industry

Over the years the hospitality industry has witnessed multiple transformations — the rising need for competitive pricing strategies, penetration of mobile devices, changing traveler preferences, and more.

And all of it directly impacted the revenue management segment in the industry, taking it from nice-to-have to a must-have.

According to various reports, the revenue management market is expected to grow to USD 22.4 billion by 2024.

Furthermore, I have been in this industry for quite some time now and witnessed firsthand how the industry is becoming receptive to revenue management. Be it about outsourcing revenue managers or setting up in-house departments, hotels are putting in a significant amount of effort.

However, if we take a wider look, there are many properties that aren’t sure whether revenue management really makes a difference. 

Not just that. 

Many don’t even bother to focus on optimizing their revenue; either because they lack expertise and resources, or just find it overwhelming.

Prominent Features of a Hotel Revenue Management System

While the idea of revenue management could be a massive deal for hotels, revenue management software sorts everything out at ease.

It makes revenue management simple and delivers substantial results.

Wondering what exactly a revenue management system is?

A hotel revenue management software or system is a tool that automates the process of using data to determine the right price for hotel rooms and maximize the overall revenue of the hotel business.

Now, there are several hotel revenue management systems available in the market, but not all of them are worth all the tea in china. You as a hotelier must analyze every aspect of the system and then go for one.

To make it a little easier for you, the following are a few hotel revenue management system features that you need to look at while opting for one.  

1. Intuitive dashboard

The first and foremost thing to look for is how easy the system is to understand and operate. And that you can determine by looking at that dashboard.

An intuitive dashboard makes it as easy as ABC for the end-users to understand, use the system, and get a quick insight into their data, and drive revenue decisions for the properties.

Simply put, even those who possess minimal technical expertise can make the best out of the system while they are first learning to use the program.

As a cherry on top, also consider whether the dashboard allows various types of views such as list and calendar views. These types of dashboard orientation allow users to spot errors and crucial data points.

2. Multi-dimensional property analysis

The subhead sounds a little too sophisticated? Let me help you understand by breaking it down. (Modafinil Smart Drug)

One of the core aspects of revenue management is analysis — both of your property and competitors.

An ideal hotel revenue management system should be able to analyze your property’s performance on various parameters to help you identify the scope of improvements.

Furthermore, it should also be able to perform in-depth competitor analysis, comparing their rate plans, performance insights, pricing strategies, and more. Additionally, it helps you determine where your competitors are lacking and you’re ahead, and vice versa.

3. Intelligent pricing engine

If I was a revenue manager I would be able to determine what’s happening in the industry at present, how other hotels are pricing their rooms, what travelers are seeking, etc. Because I can see it first hand and make changes accordingly.

But for a machine or a system to do the same, it requires data points and the ability to make sense of that data.

This is where an intelligent pricing engine comes in.

When you’re in your research phase of finding the best revenue management software, make sure the system is able to optimize hotel pricing based on data from market behavior and its consumers.

Dynamic pricing (also known as surge pricing, demand pricing, or time-based pricing) is a great example of price intelligence. It is a strategy that accommodation businesses use to set flexible prices for their rooms based on current market demands.

In the simplest words, intelligent pricing is all about delivering what your guests expect whilst being profitable for you. 

4. Super detailed reporting

This is another vital feature you need to look out for while choosing the right revenue management system for your property.

When you invest in a system to gain meaningful revenue, you have to have a detailed view of what’s happening and reports are your friend here.

Be it about your property’s analysis, pickup report, ADR report, revenue forecast, or competitor analysis, the reports should deliver even the tiniest of the details.

If the system doesn’t offer that, then you might want to continue.

The Best Revenue Management System Out There

Which is the best hotel revenue management software for hotels? 

This is exactly what you’re thinking. Aren’t you? 

Well, there are various revenue management systems available for hotels in the market and each of them is great in its own way. 

However, being in the hospitality industry for so long, my money is on eZee Mint. 

eZee Mint is one of the smartest revenue management systems in the hotel industry at present that helps in optimizing revenue through dynamic pricing. 

The system is designed and developed by considering the vastness of revenue management. It works upon a series of criteria including weekly occupancy, seasonality, lead time, demands, and last-minute booking to calculate competitive rates for the available inventory.

Simply put, it not only offers pricing strategies but also helps you analyze your hotel’s entire revenue infrastructure and boosts the bottom line significantly.

Conclusion

Revenue management is crucial for hotels. But what’s more crucial is the ability to use it the right way. Also, if you have been wondering about what features a hotel revenue management system should have, then I am sure this blog is definitely going to help you.

I talk to a lot of hospitality professionals and they always tell me that even though revenue management is important and hotels are using it, the awareness still needs to be pushed a bit more.

Many hoteliers, especially the new and budding ones, must learn about this amazing aspect of hospitality.

Lately, through my blogs, I have been trying a lot to spread the word about hotel revenue management. Do let me know if I am doing it right or should I try something else.

The post Pick the Hotel Revenue Management System That Has These Features appeared first on eZee Absolute.

]]> https://www.ezeeabsolute.com/blog/hotel-revenue-management-system-features/feed/ 0 https://www.ezeeabsolute.com/blog/future-demand-data/ https://www.ezeeabsolute.com/blog/future-demand-data/#respond Wed, 16 Feb 2022 12:06:30 +0000 https://www.ezeeabsolute.com/blog/?p=11394 A hotelier should have a firm grip on future demand data. Learn more about the same and how it can help with revenue management.

The post How Can Future Demand Data Help in Hotel Revenue Management? appeared first on eZee Absolute.

]]> Revenue management has become commonplace in the hotel industry.

A hotel with the right set of revenue management strategies is in a much better place than the ones without.

But what makes revenue management so prominent?

Data, data, and data!

They said data is the new oil. Well said.

And today, in this blog, I am covering an interesting type of data that lately has become a fuel for revenue managers in improving their strategies.

Let’s look at what this data is and how it is transforming the hotel industry for the good.

Table of Content

1. What is Future Demand Data?
2. How is This Data Relevant to the Hotels?
3. How Future Demand Data Can Fuel a Hotel’s Revenue Management Efforts?
• Offer insights from the local market
• Give a view of what your competitors are preparing for
• Help you analyse your current strategies
• Help you refine your revenue management tactics
4. Future Demand Data is the Need of the Hour

What is Future Demand Data?

Future demand data gives you insights into your source market to see how demand develops. Simply put, it enables you to predict how many guests will stay in each room during a given period.

This future forecast can come from surveys, customer preferences, marketing research, or other sources.

Now, it might not seem that amazing yet just by thinking about how hotels can use future demand data.

But once you get to know more about it and learn about its use cases, you’ll understand how it is going to make a difference.

And this brings me to the next point. 

How is This Data Relevant to the Hotels?

Hotels need data to improve their services, any day. And future demand data can be an efficient fuel.

The goal of this type of data is to help hotel managers predict what guests will want from hotels in the future. And with the right set of data, they can develop goals and strategies that are tailored to meet those needs.

A hotel that leverages future demand data become better at strategic planning for years into the future, rather than just a few months out.

This is a big deal, especially in an industry that can be so reactive to what’s happening on the ground.

For example, recently there has been a shift towards more health-conscious and vegan guests who are looking for hotels with lower environmental impact, no animal cruelty, and less waste. 

So, hotel managers would benefit greatly from incorporating future demand data into their planning process to accommodate these changes while still providing top quality service to their guests.

The Bigger Deal

What makes future demand data more intriguing is how it turns revenue management into the most powerful weapon in the arsenal.

Revenue management is all about leveraging data and setting the right price for the rooms. Now, what if you could already predict your hotel’s demand (demand forecasting, for instance) and set prices accordingly? You’ll be leading the race.

And this brings us to the primary topic of the article.

How Future Demand Data Can Fuel a Hotel’s Revenue Management Efforts?

Future demand data is a goldmine for hotel businesses and their revenue management experts. After all, the benefits are so stunning.

1. Offer insights from the local market

Being a part of the hospitality industry for such a long time, I have seen hotels not betting big on the local market. Maybe they have their strategies in place, but I still believe that they must go out of their way to tap into the local market.

The opportunities and money are significant in this space. Moreover, it is one of those markets that can revive you when your business declines.

The covid pandemic must have proved this point already. 

Now, forward-looking demand data empowers your hotel with insights from the local market. And what are these insights?

You get to know what is trending and going to spike in your destination.

Maybe you have performed a compset analysis or an analysis specifically to look for future trends. And then, you found that workation is going to be the next big thing in your locality. Additionally, you also identified the price point people are willing to pay.

This is when revenue managers come into the picture and build a pricing strategy that is aligned with the preferences of your local market.

Brownie point for marketers: You can carry out geo-targeted ads and promotions for your local market to gain better traction and gather data.

2. Give a view of what your competitors are preparing for

Another ace up your sleeve is the information that you get about your competitors.

Be it revenue management or compset analysis; for a long time, future demand data wasn’t a crucial part. However, the scenario has changed in the last few years.

And why not? The right set of data, gathered from the right sources, enables you to understand what your competitors are preparing for.

But is this information useful?

For example, despite the boutique location and its high demand, one of your local competitors is turning actively towards reducing its pricing. 

But on the other hand, two more local competitors are betting a bit high on a new pricing strategy with a major change in the cancellation policy.

This part is crucial.

You have important insights from three of your local competitors now. But do you need to consider all three of them?

Absolutely, No!

Future demand data helps you with competitor information so that you can figure out what your competitors are doing right and where they are falling short.

This helps revenue managers identify white spaces where strategies can be built to maximise revenue.

3. Help you analyse your current strategies

Your hotel is operating with the best-in-class revenue management strategies in place. You also have pricing that attracts a lot of staycation enthusiasts.

But wait. What if the staycation trend fades in the coming months and some other trend takes over?

Is your hotel ready to deal with it?

Are your pricing strategies optimised enough to work in line with upcoming trends?

If the answer is a yes, then well and good. But if it’s a no, then you might need to leverage a different approach.

With the help of forward-looking data, you analyse your current tactics to determine whether they are hitting it out of the park. And later make changes accordingly if required.

4. Help you refine your revenue management tactics

Dynamic pricing is at the heart of revenue management. But it is not the only tactic.

When it comes to boosting a hotel’s overall revenue, experts use an arsenal of strategies. It could be around OTAs, direct bookings, overbooking, etc.

But what’s more important is to be sure of whatever the strategy is, it is worth all the tea in China.

When leveraging future demand data, you only get an idea of the future strategies but also how to refine your current strategies.

For example, they say overbooking is a necessary evil. But that doesn’t mean it has to be every hotel’s go-to strategy. And this is what crucial information helps you determine — whether overbooking is good for your hotel or something you can do away with.

All in All: Future Demand Data is the Need of the Hour

Humans are always looking for “what’s next?”. And this curiosity has led to gazillion business success stories.

Doesn’t matter to which industry you belong to, it is imperative to predict the future if you want to scale.

 And the same affair has occurred in the hospitality industry.

There was a time when data itself was overlooked for many years. But when hotels saw the efficacy of data in building business strategies, creating pricing models, etc. they started a rapid adoption.

Today, data has become commonplace in the world of hospitality.

A hotel without data is a bus without a driver.

Future demand data in recent years have gained tremendous traction. Hotels from all around the world are betting big on it.

The major reason is historical data, despite being crucial, is being overlooked by many hotels in the industry.

Firstly, it doesn’t offer the same that it used to in the past.

Secondly, the hospitality industry is ever-evolving; meaning, hotels need to know more about the current and the future market. And this is where forward-looking data is rocking the domain significantly.

Conclusion

I was very excited to start this blog because of the topic. This article has been long due and now that is live, feels great.

From the get-go, I have tried to cover all the required aspects of forward-looking demand data and how it is going to help in revenue management. Apart from that, I have also tried to give you a glimpse of the traction it is gaining, at present. 

Let me know if there’s anything that I have missed. I would add it to the blog.

Also, let me know what all topics you would want to read about, will get them live as well.

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