With the developments resulting from Covid-19, established travel patterns went out the window. So did most hoteliers’ ability to forecast and price their rooms based on historical data. However, a precise forecast is more important than ever in these uncertain times.
The same is true for pricing. Revenue managers are under pressure to price rooms in a way that maximizes revenue from every bit of business. Unpredictable demand shifts make this task even more difficult than usual.
These challenges have drawn the hospitality industry’s attention to forward-looking data. It’s the ticket to accurate demand forecasting and optimized revenue today. Let’s examine where you can get access to it and how you can use it at your hotel.
A revolutionary change in revenue management and a competitive advantage for hoteliers
Working with on-the-books (OTB) data is no longer enough for your hotel to thrive today. Instead, hoteliers must find new ways to adapt to changing market conditions. Using advanced resources is a good place to start. They will help you get through the recovery period and discover new demand pockets. Keep in mind that new revenue streams may require you to develop new concepts or business models.
From now on, your success will depend on a proactive, data-driven process, cutting-edge tools, and top-of-funnel data more than ever.
What’s so revolutionary about top-of-funnel data? It offers revenue managers the booking and travel intent data needed to reliably forecast demand even in uncertain times. Modern tech solutions that offer these insights will give you an unprecedented leg up on your competition.
“Historical reference points don’t offer the guidance they once did. Hotel forecasting is extremely challenging in these times, however, looking into the future and planning for it has never been more important. Revenue managers must focus more on current and forward-looking data to predict demand and adjust pricing at the right time. Understanding true demand data in the future, like for example the intent to travel, will allow revenue managers to create realistic forecasts which will no longer be based on historical on-the-books data,” says Alexander Edström, CEO at Atomize.
The business benefits future demand data will have on your revenue management tactics
Forward-looking data offers several priceless benefits historical data doesn’t.
For example, future demand data helps you:
- Discover high-demand days and market shifts early on, so you can optimize your rates and boost your revenue.
- Observe changes in hotel booking demand and booking intent in your geographical hotel market, 365 days rolling.
- Stay ahead of your competitors since the availability and adoption of future demand data is still extremely low in the industry.
Below are three concrete examples of how you can use predictive, forward-leaning demand data to maximize your revenue.
Get access to localized demand insights:
Future demand data looks at your source markets to see how demand for your region is developing there. If you know when a source market has high interest in your destination, you can put out geo-targeted promotions and ads for it. That way you capture more of the existing demand. For the best results, you’ll take your RMS’s optimized rate suggestions.
Access deeper competition insights:
Forward-leaning demand data combined with competition insights gives you an idea of how your competition responds to demand shifts. Use this market overview to better position your property in your compset and the overall market. You’ll have a lower risk of outpricing yourself and optimizing rates according to real-time demand fluctuations will become easier.
Improve revenue strategies with a better market overview
Top-of-funnel data looks beyond the latest competitor rates and trends on OTAs. It provides you with a more complete picture which includes holiday, event, flight, GDS data, and much more. To collect and analyze all this data, a business intelligence (BI) tool is essential. It would be impossible for any revenue team to handle this volume of data manually and in real time. Instead of giving you separate snapshots to piece together, a BI tool shows your market and future demand as a whole. Leverage these insights to adjust your revenue strategy and make optimized decisions for the short and long term.
“Market conditions for hoteliers have changed drastically with fundamental shifts in traveler behavior and constantly evolving demand patterns. Understanding traveler search patterns and upper-funnel data has become essential for hotels to capture demand before their competition,” said Sean Fitzpatrick, CEO of OTA Insight.
In Atomize RMS the users will be able to Identify high demand days and market anomalies. The demand data from Market Insight will be processed together with Atomize’s other data sources, including both historical and future on the books data, to identify dates with high future revenue opportunities.
How can I access forward-looking data for my hotel?
OTAs have almost held a monopoly on future demand data in the past few years. OTA Insight’s innovative BI tool Market Insight is here to change that. It makes this information accessible to hotels. Now, revenue managers can check aggregated data sets for booking demand for their property 365 days rolling for markets worldwide.
You take things another step further though. Feed this information directly into your RMS to ensure your rates are always adjusted in real time. Our new partnership between Atomize RMS and Market Insight allows you to do just that. In short, it reveals search and inbound travel volume for destinations around the world. This helps you better navigate markets now and in the future.
This gives you a unique competitive advantage. Now you can forecast more accurately, optimize your rates in real time, and boost future bookings, revenue, and profitability.
If you’re interested in testing these new solutions, reach out to our team now and we’ll be happy to help you find the option that will best support your property during and after the recovery phase.