Fikri Roslan, a revenue management expert at ZEN Hospitality Solutions (Malaysia), shares his opinion on the travel industry during and after COVID-19. Based on his years of experience, he emphasizes that coupling the current hotel trends with the implementation of good hotel revenue management practices will give your hotel ample opportunity to improve during the crisis. Here are his 4 best tips for hoteliers:
1. Focus on corporate bookings
Once the market recovers, the traction will be low at start. Hotels can try to re-align their focus on corporate bookings because employees might need temporary accommodation.
2. Offer exclusive discounts
Hotels can take extra steps to reward loyal, or potentially repeat customers. Try to incorporate some “value-adding” elements and offer vouchers or substantial credit to current guests if they rebook in the near future. When circumstances permit, hotels can also offer exclusive deals like flexible cancellation policies, hassle-free credits, or complimentary amenities for future stays. This way, hotels can slowly gain back the trust of guests.
3. Stay up to date with your competitors
Re-evaluate who your competitors are, especially if your value proposition has changed. For example, during this lockdown, if the current services you provide in your hotel are on food and beverage only, your main competitors now are hotel restaurants and other food chains. Your hotel’s unique selling point will now change, compared to your primary offer which are lodging services. Now that this shift in focus is determined, you can adjust your strategy and prices accordingly.
4. Consult a revenue manager
Always practice open communication with a pricing expert about your goal. This allows the entire hotel team to focus their strategy around achieving that objective and manage costs effectively to achieve ideal profitability. Investing in revenue management from an early planning stage, even before a property opens its doors for business is vital. This is especially important during a crisis, where most hotels are taking some time off due to the restricted movement order. When effective revenue management culture is established in the early stages of a hotel’s lifecycle, it informs the management about the hotel’s direction and the path it’s going to take to get there.
How does ZEN eManager help hotels in revenue management?
ZEN eManager helps hotel owners have more efficient operations and increase revenue, with its cloud-based property management system, channel manager and advanced ZEN pricing model.
ZEN eManager’s pricing model has the three main factors: dynamic, multi-factor, and accurate pricing, which allows hotels to price their rooms in a way that they’d get maximum profit. The ZEN pricing model has the most advanced algorithm, since it is powered by artificial intelligence and machine learning.
Dynamic pricing allows revenue managers from ZEN headquarters adjust room rates up to 7x per day to make sure that hotel owners get maximum revenue. Moreover, multi-factor pricing allows revenue managers from ZEN to check on demand, seasonality, and competitors’ prices to adjust hotel room rates. ZEN eManager’s accurate pricing strategy is powered by big data analytics allowing revenue managers to indicate the expected demand for each hotel. ZEN’s revenue managers look beyond the property’s most-recent data to assist the hotel regarding their pricing strategy. In turn, this will allow hotel owners to yield business that drives longer length of stay and onsite spend.
Consult with one of ZEN’s professional revenue managers to stop incurring losses. Click here to book a meeting.