Indicators, Analysis and Strategy: Tourism Professionalization
It is becoming increasingly common for companies of different sectors such as hotels, car hire or restaurants to have a revenue manager, or to hire a consultancy firm to lead them into strategies to maximize their income.
However, there are still many companies that do not take this option into account. Sometimes due to a lack of budget, sometimes because they have been managing their companies for a long time and do not see the need. Either because they believe that they are doing it the right way, or simply because they are unfamiliar with these techniques, which are relatively new.
Turbosuite is a technological and statistical complement
Among our clients, we have properties which had everything in order to achieve high revenues (high occupancy data, good ranking, high-quality facilities) but did not have a good data analysis. This was preventing them from getting the maximum benefits. In several cases, thanks to our preliminary analysis, we have managed to increase the ADR by 10-15%. This has been very positive when addressing the lack of occupancy in the sector.
Analysis (or lack of) in the strategy
The lack of analysis, or an incorrect one, not only affects revenue directly, but also deprives us of the opportunity to know the customer’s behavior, which is essential to be able to establish targets. This lack of knowledge and lack of analysis is the reason why some hotels still have static or seasonal prices.
A significant number of tourist establishments estimate that their clients only take into account the day of the week, whether it is high or low season, or if there is an event in the city to make their bookings. This means a lack of dynamism that makes the property less competitive, while it makes it more difficult to take proactive decisions.
Dynamic pricing is very useful in situations such as the pandemic. For example, it can help us to get through the price war in the accommodation sector. A property that does not know its customers and has no knowledge of the market would automatically lower the rate out of fear of not reaching occupancy, resulting in a loss of revenue. However, not only this would not improve room occupancy, in some cases may result as well in a loss of image for the hotel, which is difficult to recover.
These unforeseen situations, and the high level of competition in the vacation rental and hotel sector, demonstrate the importance of investing in a revenue manager. We have shown that the business management must change if an effective pricing and distribution strategy is to be implemented in order to achieve good results. Turbosuite aims to help those people, who understand or are beginning to understand the need to make decisions based on quality, well-analyzed data. We are talking about Industry experts who may or may not have the revenue know-how, or lack the access to the technology to get the most out of it.