One of the great parts of the Hotel business is change and the resulting development of new tools to adapt to the change.
A great example of this was the rush of new technology to support Hotel Revenue Management that started in earnest in 2001 with the explosion of on line distribution channels. Hotels in North America participation in on line channels averaged 8 per property while in Europe it was in the range of 15 channels per property. This spurred on the evolution of Rate Shopping tools followed quickly by Channel Management tools.
Hoteliers embraced these tools that allowed for efficiency in the day to data operation while maintaining their pricing and inventory management strategies.
As the distribution model continued to evolve there was the entry of even more tools focusing on benchmarking and monitoring tools. The big topic recently is all about social media monitoring.
I am often asked asked my opinion on the tools in the market that are being pushed by the provider of the tool along with partnerships they have formed. Don’t be surprised when one of your partners starts adding new tools to recommendations for your property; there is usually a financial relationship behind it.
So how do you know when a tool is worth purchasing? Consider the following when you are making the buying decision:
- What need does this new tool answer in your business?
- Do you have time to use the product?
- If you don’t buy what will happen?
- What will the addition of this tool do to create additional revenue at your property?
- What is the ROI in the tool?
- Have you optimized all the other elements of your operation ?
- Do you use all the tools you are currently buying today?
If you enjoyed this article, get email updates