The Importance of an RMS in the Guest Interaction
BEONx bets on gathering detailed guest information and implementing artificial intelligence to facilitate processes to obtain maximum profitability.
A hotel’s ability to understand market needs and adapt quickly will set it apart from the competition. It’s necessary to have the right information to be able to offer the right product to the right traveler at the right moment.
A good understanding of the relationship between hotel and guest helps make decision making more efficient and relevant. Did you know that some of the most rigorous reports revealed that the number of offline hotel bookings exceeded those made online? According to Phocuswright’s European Online Travel Overview Twelfth Edition, in 2016 offline channels captured 51 percent of Europe’s travel bookings. However, despite the growing importance of traditional travel agencies in several countries, online bookings will be the most popular channel in 2017, driven by mobile phones. According to the same report, by 2020, offline travel bookings will decrease to 42 percent, while both OTA and direct bookings are predicted to gain a more significant market share.
Surprised? Maybe not so much. This is due to the client mix being heterogeneous and difficult to control if you don’t have the necessary information. At the same time, it’s important to audit and identify the correct management, rather than to base your judgement on assumptions. According to data from Expedia Mexico, more than 20 percent of bookings made by Mexican travelers were reserved between zero to six days in advance, for both business and leisure travel. Carolina Piber, Executive Director of Expedia in Latin America, comments on how Mexican consumers are 15 percent more likely to book a last-minute trip compared to markets like Brazil.
Factors for building a Customer-Centric Revenue Management strategy
Information of this calibre in addition to chronological factors like reputation or pricing make it possible to implement intelligence in decisions where guest behavior is key. In a previous article, we talked about the 8 stages of travel, so this time we thought it would be interesting to determine the role an RMS can play in this process, as well as the factors that can intervene. For your hotel, it’s important to consider all factors that directly influence your guests so that you’re the most competitive in the market. These factors are:
Price Factor. According to Tripadvisor’s Tripbarometer 2015 study, price is still the single most important factor influencing travel decision-making. At BEONx, we know how important this is to your hotel, and its influence on the market and your competitive set. Understand how to influence the process of travelers’ decision-making by offering the best rates. Analyzing user booking behavior will help you optimize your revenue management approach.
Distribution Factor. To gain a competitive advantage, it’s important to determine the best distribution channels and the cost of guest acquisition for each channel. You can analyze online and offline channels and determine which channels are most profitable to your hotel.
Loyalty factor. An RMS is essential for both Revenue Management and Marketing departments. Account for costs associated with regrets and denials and determine how your hotel’s loyalty program impacts total demand as this will help your hotel’s distribution and marketing efforts.
Strategy Factor. A clear strategic vision will help you provide your RMS with the right information so that you can automate manual tasks. Freeing yourself from manual tasks will save you valuable time and allow you to focus more on strategic planning. Our goal at BEONx is to maximize efficiency and parameterize an unstructured system to make it easier for you to obtain the information you need when you need it.
We propose a platform under a Customer-Centric Revenue Management model where the objective is to identify each user (the traveler) “one-to-one” and make life easier for your guests. We’re committed to research and to gaining as much information as possible to be able to adapt to supply and distribution.
Find out how BEONx can help you