Revenue Managment as the Axis of Digital Transformation
Today, decision-making processes are based on a large number of factors conditioned by the hotel’s value proposition.
Factors such as the traveller’s perception of a price matrix and the product properties will allow us to analyse our place in the market. On the other hand, it is interesting to consider how segmentation based on purchasing behaviour will make a tremendous difference in the traveller’s willingness to pay for the product and will be subject to attributes such as convenience, status or quality.
The role played by the digital transformation in the optimization of the processes associated with the adaptation of the product or its distribution alters and modifies the traditional processes. We move from the standardized product, on customer typologies predefined by the sector (family tourism, business tourism, cultural tourism….), to an evolution that allows us to analyze large volumes of data with Big Data, extract business intelligence with Machine Learning and adapt the product to the needs of travelers with Online Reputation, among others, to reach a decision making in real time. This brings us to a 1-on-1 work on travelers and a personalization of the product-service as never before seen. This evolution is identified under the concept of Customer-Centric Revenue Management and prints an important level of demand, professionalization and technification that allows to improve the performance of the hotel’s distribution strategy.
In order to consider how to influence the centralisation of the processes that the hotel proposes on the needs of the traveller, it is important that we define the actions, channels or moments of interaction with the traveller. In this way, we adapt the value proposition to the maximum in order to try to optimize the costs associated with capturing and increasing the hotel’s ADR. To make this possible it will be important that we take into account the following factors:
Price search. For customers who are price sensitive it is important that we work under a real-time Revenue Management strategy. To adapt the price to the client’s expectations and to have a coherence in our rates, on competition or on our own channels, must be a maximum for the hotel.
Comparison of services. Maximizing the advantages of our product-service will be another of the key competitive factors for our hotel. Nowadays, the comparison through OTAs or Meta-search engines simplifies the choice of accommodation and, therefore, we enter into a direct competition in terms of maximizing services and facilities.
Price comparison in different channels. In our eagerness to distribute on different markets or to solve the problem of oversupply we are involved in a competition on different channels with a base rate subject to parity in most cases. Communicating consistency in pricing policy will enhance our ability to offer the best conditions in the channels that involve the least cost to us.
Visit the website itself. In none of the scenarios we are considering should we consider leaving aside our most direct and automated channel. The client, naturally, will visit our portal in search of a better price or a value proposition closer to their needs. Therefore, it is important to offer a good image and to approach the distribution of our product in a differentiated way.
Search by reputation. Online reputation is still one of the determining factors when it comes to choosing one or the other accommodation. Working on this value and implementing continuous improvement processes on the perception of the traveller will be an advantage to be considered in terms of product development over needs.
Analyzing these aspects, Beonprice has adapted its product and its functionalities in the purchasing decision processes under a Customer-Centric Revenue Management approach. Therefore, the objective of its RMS tool and the transformation it prints in the hotel is to help the accommodation in such critical phases as: pricing policy, distribution, customer segment loyalty and hotel strategy, implemented technology that makes it easier and closer to hosting business intelligence and even process automation.