How hotel pricing automation helps keep independent hoteliers competitive, as told by Michael McCartan, Area Vice President, EMEA Sales.

When facing the immense resources of their big, branded competitors, it is easy for independent hoteliers to feel like the deck is stacked against them. However, advances in revenue management technology have helped independents shift the balance to a more level footing. 

Let’s explore three ways automated revenue management tools are changing the dynamic for independent hoteliers.

Making More with Less Labour

Many large chain or branded properties have the resources to provide entire teams dedicated to revenue management. That’s a luxury few independents have, with many turning to a single revenue manager to oversee a large portfolio of properties and many others without a dedicated revenue manager at all.  

For these independent hotels, automating their pricing strategy is often the most practical way to grow revenue while maximising the effectiveness of their potentially thin-stretched resources. Additionally, advanced demand forecasting capabilities can help inform operational planning and ensure properties are staffed and stocked appropriately. 

Bolster Earnings

With tighter credit availability, there’s intense pressure on hoteliers to improve profitability. While some independent hoteliers may be wary of adding the expense of an advanced RMS, these tools are considered by investors to be some of the most effective options for improving the value of a property. By enabling improved revenue performance, these tools can help free up capital for property improvements, aid in securing better loan terms, and guard against unexpected market shifts with time-tested revenue-generating strategies.

Independents, backed by a well-informed RMS, can compete with the substantial resources of a branded property thanks to accurate customer data and a greater ability to control costs related to revenue.

Maintain Independent Freedom and Control

Despite the clear benefits of having large brand resources, independent hoteliers choose to branch out for a reason. The ability to maintain freedom and total control over their operations is often paramount—and that’s not just a personal preference, either. Branded properties often have less flexibility when generating room-type configurations, setting terms for corporate contracts, and navigating group business decisions. 

While brands have certainly developed a strong revenue management playbook, the rigidity of these processes can potentially stifle innovation in product offerings—and in turn—revenue maximisation efforts. 

A Fairer Fight

In a “David versus Goliath” competitive landscape, independent hoteliers need their slingshot to give them a fighting chance. Advanced automated revenue technology serves as a great equalising force and one that should not be overlooked. With the right technology backing them, the competitive landscape is rebalanced just enough for independents to effectively show what makes them great, speak directly to their guests, and win on their own terms.

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