RateTiger by eRevMax Shines at ATM Dubai 2023 – A Glimpse

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Arabian Travel Market (ATM) is the leading global event for the Middle East’s inbound and outbound travel industry. Attending the ATM is like discovering a new book every time. This year, RateTiger by eRevMax had the opportunity to exhibit at the 30th edition of ATM Dubai held from 1-4 May at the Dubai World Trade Centre.

This event gave us the right platform to unveil RateTiger’s latest innovation. We were thrilled to see the excitement and interest among the visitors to know more about this innovation. Nothing could have been better than revealing the introduction of yield pricing in our product at ATM Dubai. The zeal among hoteliers kept our booth busy for all 4 days of the event, giving us the opportunity to connect with industry professionals and build new partnerships.

The 30th edition of the Arabian Travel Market was a resounding success, setting a new record with more than 40,000 attendees, a 29% increase over the previous edition in 2022. This 4-day event welcomed over 2,000 exhibitors and representatives from over 150 nations. The diverse range of exhibitors and participants participating in the event helped RateTiger set a new record too with the number of business professionals we met. ATM Dubai truly encapsulated the global nature of the travel industry. The energy and vibes of travel professionals coming together were unbeatable, reigniting their passion for business and growth.

ATM Dubai – ‘Working Towards Net Zero’

This year’s Arabian Travel Market (ATM) Dubai has adopted the theme ‘Working Towards Net Zero’, reflecting the industry’s commitment to sustainability and environmental responsibility. The Second Deputy Ruler of Dubai, Sheikh Ahmed bin Mohammed bin Rashid Al Maktoum officially inaugurated Arabian Travel Market 2023.

Following this slogan, ATM focused on reducing the event’s environmental impact. They had established 3 pillars to help them achieve net zero by 2040.

Educate
Collaborate
Action

We proudly say that The Middle East is a key growth market for our business. The event gave us valuable insights into the unique challenges and opportunities facing the region’s hospitality industry.

RateTiger at ATM Dubai

RateTiger’s presence at the ATM Dubai was truly remarkable. Numerous visitors stopped by our stand, and the RateTiger team enjoyed networking with clients, partners and hotel owners in person. During this 4-day event, we showcased our product to small and big hotel owners, B2Bs, OTAs and destination management companies. We described to them how RateTiger could optimize revenue management, streamline operations, and improve the guest experience.

We revealed our most awaited announcement – yield pricing – which will strategically impact a hotel business. This incredible feature allows hotel owners to create a customized pricing strategy tailored to their hotel’s occupancy level and ensures they strike the perfect balance between supply and demand. We were thrilled to see how this feature was readily accepted by the hotel chain owners. They shared their thoughts and expectations from this latest innovation.

It was a pleasure to receive feedback on how our products: RateTiger Channel Manager, Booking Engine, and Rate Shopper, simplified many hotel problems in the Middle East. We received uncountable positive feedback from many clients, partners, and friends worldwide. It gave us more strength that we are on the right track to providing the ultimate solution on the latest trends and developments in the hospitality industry.

Our presence at ATM Dubai was an engaging, innovative, and informative experience for industry professionals. We are looking forward to participating in more events in the coming days. With a vibrant atmosphere and exciting interactions with partners and clients, ATM Dubai left a lasting impression on us.

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Unveiling RateTiger’s Latest Innovation at ATM: A Conversation with RateTiger’s Product Owner

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RateTiger by eRevMax – a leading provider of hotel revenue management solutions welcomes you to a recent interview conducted by the marketing team. With ATM – Arabian Travel Market in Dubai just around the corner, we’re excited to speak with Alin Lazar, product owner at RateTiger, about the upcoming innovation that the company will be announcing at the tradeshow. As hoteliers continue to face challenges in the industry, the latest development promises to automate pricing distribution while balancing occupancy and price.

In this interview with the marketing team, we’ll be talking about the benefits of this new innovation, its impact on hotel revenue, and its user-friendliness.

So, let’s dive right into this exciting conversation!

Marketing: As the product owner, you’ve mentioned that a new innovation has been developed, and it’s set to be announced at ATM. Could you give us a sense of what benefits this innovation would bring to our users once it’s revealed at the show?

Alin: Unfortunately, my lips are sealed when it comes to the specific details of our upcoming innovation. But what I can tell you is that we’ve been working on an automation tool that will make hoteliers’ lives a whole lot easier. Think of it as a magical price distribution engine that automates the process, allowing hoteliers to strike the perfect balance between occupancy and price. And the best part? It’ll even get rid of those pesky Excel spreadsheets that are a thorn in everyone’s side.

We’re thrilled to report that our beta testing has been a success. We’ve got some seriously happy hoteliers on our hands. We can’t wait to unveil this innovation to the world at ATM and see the positive impact it’ll have on the industry.

Marketing: It sounds like this innovation has the potential to make a big difference for hoteliers. It’s something that would automate the process and help with price distribution, but what about the impact on revenue? Could you speak to whether this innovation has the potential to positively impact a hotel’s revenue?

Alin: Definitely! With this innovation, hoteliers will be able to automate the price distribution process and achieve a better balance between occupancy and price. This can lead to increased revenue and profitability for hotels, and for example, what we’ve seen during the beta testing was an average of 4% revenue increase.

In today’s fast-paced industry, time is money, and hoteliers who are able to save time by automating their processes can gain a competitive advantage. By automating the pricing process and eliminating the need for manual monitoring of occupancy, hoteliers can also focus their efforts on other areas that can drive revenue as well, such as guest experience and marketing.

In short, automation and revenue go hand in hand, and this innovation has the potential to help hoteliers achieve their revenue goals while also saving time and resources. We’re excited to see the positive impact it will have on the industry.

Marketing: From what you’ve shared so far, this innovation sounds like it has the potential to make a big impact for hoteliers. But I’m curious about how user-friendly it is. Can you speak to the user experience and whether the tool is intuitive and easy to use?

Alin: Absolutely! Our design team deserves a round of applause for creating a user-friendly and intuitive interface that even a kid could use…

We’ve worked closely with hoteliers to make sure that the tool addresses their pain points and helps them optimize their pricing distribution strategy.

Overall, we’re confident that this innovation will help hoteliers increase revenue while saving time and headaches. And with its user-friendly design, hoteliers can spend less time managing their pricing strategy and more time doing what they do best – creating unforgettable guest experiences.

Marketing: This innovation sounds really exciting! Are there any new features or updates that you have planned for the future to make RateTiger even more useful for hoteliers?

Alin: Sure, our focus is on further automating the pricing and distribution process, increasing visibility, and removing manual processes wherever possible while further expanding our CRS capabilities.

We’re working hard to ensure that hoteliers can connect with new channels seamlessly, making it a simple drag-and-drop process. Our ultimate goal is to eliminate the need for hoteliers to even go to any extranet at all, freeing up more of their time to focus on providing the best possible guest experiences.

So, while I can’t provide any specific details at this time, rest assured that we’re constantly working to improve our innovation and provide the best possible solutions to our customers.

Marketing: RateTiger will have a stand at ATM in Dubai this year. What are your expectations for the show? Also, if you don’t mind me asking, which days are you planning to attend?

Alin: Well, you know what they say about travel shows – it’s all about the free swag! But in all seriousness, we’re excited to be here and showcase our innovation. As for which days I’ll be here, let’s just say I plan to make the most of the free coffee on the first and second days, but my team will be at the show all four days, and I’m sure they will be happy to meet hoteliers to discuss and understand their technology needs. I’m looking forward to connecting with hoteliers and our colleagues from the industry

Marketing: I wish you a successful time at the show!

Alin: Thanks!

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RateTiger by eRevMax in Swing at ITB Berlin 2023 – A Glimpse

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ITB Berlin 2023 held from 7 – 9 March has been the talk of the hospitality industry since Day 1. As we conclude the month, still the discussions about ITB Berlin (Internationale Tourismus-Börse Berlin) are in full swing. The visitors/exhibitors are in no mood to give pause to the thrill and excitement of this successful event.

Like every year, RateTiger by eRevMax exhibited at this World’s Leading Travel Trade Show and had a great time. We weren’t sure of what was going to happen as the doors of ITB Berlin had opened after 3 years, but undoubtedly it was a spectacular event bringing a boost to our business – as usual.

After a break of 3 years due to the pandemic the slogan for this year was “Open For Change”. Following its slogan, this was the first time ITB Berlin hosted the event in person after 3 years bringing together people from the hotel and travel tech industry.

Open For Change

After a pause of 3 years due to the pandemic the slogan for this year was “Open for Change”. Resonating its slogan, ITB Berlin hosted the event by bringing people together from the hotel and travel tech ecosystem to drive change within the industry.

This 3-day event welcomed 90,000+ attendees from over 180 countries around the world making it one of the biggest centers of attraction and confirming it as one of the leading platforms. The entire hall was filled with laughter, warmth and excitement representing the value of face-to-face meetings.

With around 5500 exhibitors showcasing their business, performances from different regions, conferences, evening events on the exhibition ground, travel talks all together reflected people’s desire to meet and greet in person.

Welcome to RateTiger’s Booth

Across the engaging sessions, our booth attracted a lot of industry professionals and team RateTiger was pleased to network with customers and partners in person.

Just like the theme of ITB Berlin, we witnessed that the entire industry is Open to Change hugging the concept of Socially Responsible and Sustainable Tourism. Hotels were keen to not only digitalize the booking process but also have a simplified and efficient online hotel management solution.

Having the opportunity to connect with hotel owners, OTAs and other industry experts, we witnessed how the hospitality industry is continuously accelerating towards innovation. Seeing the zeal among hoteliers to simplify their booking process and eagerness to learn about RateTiger Channel Manager, Rate Shopper and other products, our excitement rose to a new level.

We received overwhelming responses from our various stakeholders be it clients, partners, friends as well as newcomers in the industry. With international participation growing from 50% in 2019 to 70% in 2023, it gave us the opportunity to introduce ourselves and pitch our products in new regions.

Carrying our bags of swotting, success, sales and satisfaction, we are looking forward to optimizing our products and strategies as per the industry trends to keep accelerating our business.

Next Stop

After a successful ITB Berlin 2023, team RateTiger will be glad to see you at the following events:

ITB India: Join us at the ITB India to be held in Mumbai from 26-28 April 2023.

ATM Dubai: Visit our Booth SS1, TT1072 to be held in Dubai from 1-4 May 2023.

See you there!

To know more, connect with us on:

For Sales related queries: sales@erevmax.com

For Marketing related queries: marketing@erevmax.com

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Target Guests from Specific Countries with Country Rates by Booking.Com

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With travelers hitting the road again, it’s time to make your property more attractive for them. How about targeting international travelers this time? More international travelers mean more revenue but how to do this?

The answer is “Country Rates’.

Whether you want to expand your regional diversity, enter a new market, or target guests from a particular country – be it your own or a new one, you can do it all with Country Rate.

What is Country Rate?

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Brand: RateTiger
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Country Rate is a feature used by hotels to set specific room rates for different countries. It is a method to offer special prices or discount rates to guests from your market of choice. Hotels can set different country rates for different people coming from varied countries. Country rates may vary depending on the hotel’s location and the level of demand for rooms at any given time.

The best part is that you can apply country rates to all your hotel room types, room rates and rate plans.

Is Country Rate Applicable Only for International Guests?

No, you are free to set discounted room rates for your local people where your hotel is situated. Hotels use this strategy to boost their presence in their own region and build business relations in the local market by offering a discounted price for corporate bookings.

The peak season varies in different countries. Country rates allow you to attract travellers from different countries during the holiday season/ peak season over there by offering discounts in different markets at different times. This way hotels can achieve 100% occupancy in advance both during high and low periods. Along with it, if you apply the mobile rate feature to your room pricing strategy, you can target travelers from all platforms booking a stay from any device.

Is Country Rate Valid Globally?

Due to legal or commercial restrictions, the country rate is not valid globally and is restricted in some countries. In fact, some hotels in countries where it is valid may ask for residential proof to make sure you are not taking advantage of the discounted price to make the reservation.

Benefits of Adding Country Rates

Target international customers from new markets.
International customers tend to book early and cancel less.
Sell your rooms in advance by offering special prices during the festive season.
Appeal to guests traveling from your target regions with a special offer.

Create Country Rates on Booking.com to unlock new demand by offering great prices to travellers from countries you particularly want to target. Adding Country Rates is a proactive step that hotels can take to increase your property’s occupancy as part of their pricing strategy.

Create Country Rates for Booking.com directly from your RateTiger Dashboard through the Promotions tab.

Read here to learn more about country rates and how to apply them to your existing room rate plan.

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Everything You Need to Know About Hotel Booking Window

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Booking Window is crucial in anticipating revenue for any hotel or B&B owner. The number of trips a traveler will make and in how advance will they book the room is highly unpredictable. But revenue managers often try to identify a pattern in the booking window and accordingly try to leverage it for profit maximization.

Let’s see how to do this.

What is Booking Window?

Booking window is the time gap between a customer making the booking and his/ her arrival. It is the same as the lead time. Let’s understand this with an example.

John booked a room in “Hotel XYZ, India” on the 15th of October and arrives on the 15th of December. The booking window for this room will be 2 months.

In simple terms, booking window talks about how much in advance a guest makes a reservation.

This window varies according to season, location, travel demands, property types, upcoming events, holidays, and other characteristics and factors. Hotels and B&B owners often rely on the booking window to plan their room rates and allocation based on historical data. For instance, if a hotel is used to receiving 10-15% of their reservations six months before the arrival, the revenue management team might allocate a certain number of rooms in their Early Bird offer and ensure occupancy.

The pandemic disrupted the normal. With restrictions and ever-developing changes, travelers wary with apprehensions look for more flexibility. That means shortened booking window, more flexible cancellation policies and last-minute bookings. For the revenue manager, this change in travel behavior has disrupted their existing framework. Relearning and readjusting to the new normal has become a challenge.

Let’s dive further into the booking window and why it is crucial for hotel owners.

Importance of Booking Window

Knowing in advance when will the maximum number of rooms in your property be sold gives you a clear indication of what should the price of the room be. With the help of rate shopping and booking window, you can set the maximum price for the room during that period. This will help you leverage revenue maximization by setting the highest price during the booking season. But this comes with a catch.

It is only pragmatic not to show all your cards – similarly hotels need to make room availability based on booking window. No revenue managers make all their rooms available for sale at the very beginning of the booking window. The idea is to phase out, monitor the booking pace and keep a few for real-time demand, i.e., last-minute bookings during the season. Different markets have different booking windows and people can act differently during the booking phase and actual arrival.

Let’s take an example.

Suppose for the holiday season in December; most people start making their reservations in September. The end of September is your peak time when demand is at its best to get maximum bookings for December. Knowing this will help you set the highest room rates for December at that time. This will help you secure maximum revenue in advance for the season.

Increasing room prices before September end or after the cooling period in mid-October will help you lose the guest when your competitor hotel has already reduced their prices. This is how knowing guest behavior and booking window helps you leverage maximum revenue.

Factors that Decide the Booking Window

1. What is the best time to visit your city/ town?

The booking window for this time will be high as most guests will book in advance.

2. Is there any upcoming famous event or show in your area/ city?

The booking window will vary from the date tickets are sold to the event date.

3. Does the weather in your area change unexpectedly?

The booking window will be small as people will make last-minute bookings seeing the weather.

4. What is the ADD (Average Distance to Date) of your guests?

The booking window will be minimum as there might be last-night bookings or bookings on arrival.

How do I Calculate My Booking Window?

With most hotel reservation management system maintaining past booking data, identifying booking patterns and windows have become rather easy. One can easily get this information from your hotel channel manager or the OTAs you sell your rooms. However, OTAs can only provide you with the booking history of their channel only, so the safest side is to download the booking history of your property from the channel manager. It will give you the data of the reservations made from any and every platform.

Now that you know the importance of the booking window, it’s time to get the data of your room bookings and set the best room rates for the peak season. You can use your hotel channel manager and rate shopper to pull in maximum revenue.

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Capture the Fastest-Growing Segment of Bookers with Mobile Rates on Booking.com

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70% of travel searches start on mobile phones. In the last five years with mobile phones jumping in, there has been a steady rise in online travel bookings.

The use of mobile has changed the scenario of how travel is being searched and reservations are made, hence by managing mobile rates for your property, you too can improve reservations coming from mobile bookers.

Over half (59%) of all reservations made on Booking.com are now made on a mobile device. Capturing this market is crucial for strengthening and growing your business. Mobile Rates make properties more visible to customers and can help them reach 30% more mobile users.

Benefits of Mobile Rate

On an average, properties that offer a Mobile Rate see:

3% more click- throughs from search results
24% more customers making an attempt to book
50% of accommodation searches and bookings are made on mobile
22% more bookings from mobile customers

Attracting these bookers can positively impact your revenue. Activate mobile rates for your hotel to tap into this valuable and expanding traveler segment.

Mobile phones are a constant companion of everyone everywhere. Opting for the mobile rate scheme, your property has leverage to get bookings over the ones that require the traveler to login via a desktop or laptop. The number of bookings made on mobile apps is much higher and faster.

If you do not already have a Mobile Rate set up for Booking.com, you can easily create one from your RateTiger dashboard.

If you would like to know more about it or how you can set it up, read further – refer to this detailed article.

Subscribe to RateTiger today and start using this feature. Reach out to us for your connectivity needs to make the most of your online revenue.

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A Quick Sneak Peek at WTM London 2022 with Team RateTiger

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Team RateTiger has visited WTM London after 2 years. A lot has changed, but the industry’s resilience to turn around remains constant. Our Global Sales Manager – Joita Ghosh shares her experience.

WTM (World Travel Market) is the largest global community bringing the travel and tourism industry together. Visiting any of the events organized by WTM is always a new book to explore. This year, I had the opportunity to visit WTM London held at Excel from 7-9 November. The energy and vibes of the travel professionals coming together after nearly 2years of virtual meetings rekindled the passion for business and growth.

With an unexpected number of travel professionals participating, WTM London 2022 was fantastic. 55 nations representing their culture and tourism reflected the true spirit of WTM of bringing global travel together. The traditional dance, music and performances were a cherish to see. Welcoming an attendee list of 35,800 plus the aggressiveness for travel expansion was clearly evident.

Making New Connections

Meeting small and big hotel owners, B2Bs, OTAs and destination management companies I can tell that the travel industry is in full swing. None of the hotels present at WTM are ready to wait for the new year to plan their next move. The industry has already taken geared up to the race. It demonstrated the appetite among travel professionals to recover the losses of the pandemic.

The representatives at every stand were keen on explaining the new tools and trends for the travel sector to prosper. Hoteliers wanted to learn about customer expectations and ways to fulfill them using the latest hotel management technologies.

The conference sessions spoke about the challenges faced by the hospitality industry not only in the last 2 years but in regular days too. It helped me learn about the stones in the way of B&B owners not just in terms of technological hindrance but also in customer relationship management.

It will be wrong on my part to say that the fear of uncertainty is gone. But what I witnessed is that the professionals at WTM London were determined to use this unique networking event to maximize their business potential.

Everyone I had a chance to chat with whether he/ she was from Egypt, Malaysia, Mauritius, Croatia, Qatar, Oman, Maldives, Sri Lanka, Greece, Cyprus, Middle East, Europe, Creech, USA, London was passionate about reshaping the travel business post-pandemic.

Reuniting face-to-face with hotel owners, partners and new prospects at WTM helped me explore the travel market better and understand their needs. Glad to come back home with new learnings, technologies, trends, connections, and especially new contracts on my plate. Now, it’s our time to work together to improve and innovate the tourism industry!

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Qatar’s Hotel Booking is Flying with Fans & Travelers

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The largest sporting event of the year is around the corner and Qatar is hosting it. With less than 2 weeks left for it to begin, fans and followers from all around the world have started their packing leveraging the country’s occupancy rates. Though the hotel bookings have ramped up since last month or earlier, these last few days come as a bonus to the hotel owners.

Sports matches always bring fresh energy and vibes with them, especially to the venue it is being played at. Qatar is expected to welcome 1.2 million tourists in the last 2 months of 2022. Considering the number of air and rail tickets to Qatar being sold for the last quarter, this tournament is expected to bring a net positive impact on the hotel revenue for Q4 of 2022. This increase in demand is going to increase the occupancy rate and the ADR (Average Daily Revenue).

Demand is Increasing, Rooms are Sold, Still You Have a Chance

Yes, you read that right. Still, there is a chance for both visitors and hoteliers to book a place for themselves. With entry restrictions to the country, the government has made sure that every guest gets a roof and the rising demand gives the hoteliers the chance to maximize their revenue.

Being a hotelier, you must have reserved 15 or 20% of the rooms in your property for peak-time last-minute sales. So, this is your chance to capitalize on the demand surge and race ahead of your competitor hotels. Mega events would boost the 100% occupancy rate, but the target is to maximize your RevPAR along the way. The ADR for both local and international hotels in Qatar and nearby areas is expected to reach the peak during this season.

Where is the Demand Trend Going?

One of the first countries to recover from the pandemic, hotel industry in Qatar has been maintaining above-average occupancy and ADR consistently since last year. Given the short distance between the stadiums, hotels closer to the hosting venues are expected to see greater demand and as a result higher ADR. With this upcoming mega event, STR Forward Star predicts an average occupancy rate of 70% for hotels and B&B providers of the country in the last 2 months of the year.

With neighboring countries like Saudi Arabia pitching in, the lowest occupancy of the region in 2022 is expected to go 53% with a highest of 83% in the last week of November. Given the steady rise in demand for rooms, the occupancy on the books is expected to grow further in days to come.

In the last quarter of 2019, the year before the pandemic hit the world the occupancy graph showed a minimum of 65% with the highest touching to 86%. Seeing the current demand trends Qatar is expected to set new levels this peak season.

It’s Your Chance to Score

On the ADR front, Qatar has always shared a healthy relationship with it. During the first three quarter of 2022 the country witnessed an average ADR of USD 115,87, 13.4% higher than that in 2019. So, undoubtedly Q4 of the year is expected to soar higher.

Sporting events are always a win-win solution for hotels with average room rates soaring higher and higher. These events drive players, fans, spectators, event management team and staff to the venue with everyone needing room to stay. Altogether it is a golden opportunity for hoteliers and other departments in the hospitality sector to score the goal.

However, tournaments like these also go a long way to building better relationships with potential guests. There are several case studies that have shown how prices can fall dramatically after a major sports event. By all means, utilize the high demand to raise profitability, but give attention to the shoulder seasons as there are expected to be leaner periods. Trying to earn ‘quick bucks’ at the expense of long-term customer value and loyalty can cost dearly to the hotel industry. Do not abandon the guests, contracts and operators who have supported you during difficult times – you will again need them for long-term success. And more importantly, don’t compromise your tomorrow for a quick return today.

Therefore, while it’s the perfect time to score your goal, don’t ignore the defence. Leave the booking management tasks on RateTiger Hotel Channel Manager and Rate Shopper and set your focus on welcoming guests with the best services.

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Average Daily Rate: Understanding ADR and its Calculation

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In the hospitality industry data is very important especially when you are speaking of room rates or revenue generation. Speaking of data to measure hotel’s revenue, three of the most popular KPIs are: Occupancy Rate, RevPar and ADR. These 3 metrics together help the hoteliers measure the operating performance and success rate of the property. In this article, we are going to discuss ADR, its calculation, and its effect on hotels.

What is ADR?

ADR stands for Average Daily Rate. It is the metric used in the hospitality industry to measure the average revenue generated per room sold per day. It shows you the average revenue earned for each guest room sold on a given day. Hotel’s ADR includes discounted rates, group sales, corporate rates, package deals and all other price points.

The formula for calculating ADR

Average Daily Rate = Total revenue generated by occupied rooms/ No. of rooms occupied

*Key point: Only the number of rooms sold on a given day is taken into consideration and not the total number of rooms in the property.

Understanding Average Daily Rate

For example, you own a hotel named “ABC” with 100 rooms. On the 20^th of October, 80 rooms are sold. To avoid any confusion, let’s consider all the rooms belong to the same category. The total revenue generated on 20/10/2022 is $10000. Let’s see what’s the ADR on that day:

ADR = 10000/ 80 = $125

Now you know that your average daily rate per room sold is $125. But the question is what are you going to do with this data? There is no point in calculating ADR if you do not know the daily rate of the previous day or the revenue earned per room sold by your competitor.

Scenario 1: Suppose we know that the ADR of the previous day was $90. Then you can compare the data to see how effectively your rooms are generating revenue. But, if the ADR of the last day is $150, then we need to find out the difference in the room rates or selling strategy for the revenue lost.

Scenario 2: Let’s consider your next lane competitor hotel ‘B’ has an ADR of $175 on 20/10. Then it’s a clear indication that they are performing better than you. So, we need to find out the reason for this. Probably it’s the cause of 2 reasons: low occupancy rate or higher room rates.

The next question is what should you do to compete with the ADR of hotel B: reduce your occupancy rate or increase the price of the rooms. Before that, it is necessary to understand the effect of both.

Which is good: High ADR/ Low ADR?

Average Daily Rate takes into consideration the total number of rooms sold on a given day unlike the total number of rooms in a property in RevPar calculation.
Running a hotel involves various fixed costs: like lease rent, employee salaries, management charges, etc. A lower occupancy rate means less revenue. Irrespectively, the high-end fixed will affect the profit as it cannot be avoided.
Increasing the room rates is not always an option. There is a possibility that Hotel B has a competitive advantage against your hotel for which it is able to charge a high price for the room. Increasing the price of the room as per them you might lose on your booking, reducing your occupancy rate in turn.

Therefore, your goal should not be for an ADR towards the higher end or the lower end. You should opt for a strategy that provides optimal revenue leading to profit maximization.

Role of ADR in Revenue Maximization

The end goal of every hotel is to earn maximum revenue and that is only possible when all the rooms are sold. This can only happen when the hotel has a clear understanding of the maximum price the guests are willing to pay for a particular room. When a hotel is able to track this, you will set the best room price for your property that will get the apt occupancy rate and you will be making the maximum profit.

To achieve the optimal occupancy rate and ADR, it is essential for you to understand the role of ADR in benchmarking your room rates. Remember, ADR is never the same for 2 days. It varies for room types, different days of the week, seasonal demand, vacation time, market trends, and other macroeconomic conditions.

Having a direct relationship with market demand, guests’ preferences and other price points ADR plays a vital role in benchmarking room rates.

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Tips to Revenue Management: Use Your Data Points to its Maximization

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Every traveler has a maximum amount that they are willing to pay for their accommodation. Whether you run a 5-star hotel or a boutique villa, the goal of all hoteliers is the same – Revenue Maximization. Apprehending this value as closely as possible is the hallmark of a successful hotel. For which you implement various revenue management techniques and strategies to upscale yourself in an inclusive, responsible and sustainable way. However, the key to scoring a goal in revenue management is direct bookings.

We all know that the way to this is by customizing your booking engine, digital marketing strategies, and website optimization. But we tend to miss the power of data in achieving direct bookings. For this, you just do not need to have the right data source. It is equivalently important to analyze the data in its true sense to understand its importance and market value.

Data from the booking engine essentially helps you to understand market trends, analyze past experiences and give a competitive advantage of pricing strategy. In short, data from the hotel booking engine is not only a source of direct bookings but also shows you the way to strategize your marketing efforts directly to the guests.

Benefits of Booking Engine Data Points

The data from Hotel Booking Engine is a source of both direct and indirect revenue. Your booking engine is not only the most profitable source of direct booking but also the most trusted source of data. Directly, the booking engine brings direct booking to your hotel saving you from the commission paid to 3^rd parties like OTAs, GDS and metasearch. Indirectly, this data educates on customer behavior and booking patterns guiding you to strategize your marketing efforts in the right way.

Let us have a look at how the data points in Booking Engine help in optimizing Revenue Management.

Key Data Points in Booking Engine

Customer Segmentation

Guests are the foremost important part of hotel marketing and room pricing. Defining groups of travelers who visit your hotel and avail services can enable you to understand their different needs and preferences. Data that tells you what age, location or purpose of travel your guests have, opens up opportunities to target quality leads and convert potential guests into confirmed bookings.

The major different segmentation of guests could be:

Geographic data: location of guests
Demographic Data: age, gender, marital status
Purpose of Travel: business, sport event, family vacation
Traveler status: new or returning
Stay duration

Each and every group of guests bring an added opportunity of revenue with itself. Keeping a close tab on customers visiting gives you an idea of who your loyal customers are, which section of the customers opt for maximum cancellations or people of which category makes the reservation in advance. You can give special offers to pre-bookers and regular customers to have them revisit.

The more you analyze the customer data better you can create your marketing strategy and direct your ads to the right segment.

2. Market Analysis

Speaking of market analysis, you need to be updated with both what the guests are looking for and what your competitors are offering. When guests feel like they are getting an optimized value of service for the amount they paid, they are ready to spend more and go there. To increase occupancy through the booking engine it is crucial to understand the customer’s perspective.

This, for a hotel, serves as a basis for choosing the right distribution channels, setting the right prices, engaging more guests by promoting quality content and launching the right campaigns to drive more direct bookings. If your past record shows that during a particular time of the year or season or festival the number of visitors in the city increases, then it’s the time to get the situation to your advantage with exciting room packages.

3. Demand Forecasting

Guest demands are always fluctuating depending on different factors like events in the area, seasons, festivals, etc. Analysing information as to when the demand is more enables you to set room rates accordingly.

For example, if the maximum bookings your hotel receives from your website is on a particular day of the week, and it becomes a trend then it can be a good move to offer special offers for that day. Analysing the data to create a personalised experience is an effective way of optimizing revenue. Predicting when the demand will increase or decrease as per your past records can help hotels develop effective marketing, pricing and distribution strategies for maximum revenue.

4. Data Source

Speaking of online bookings, what matters the most is convenience and flexibility. In this digital age where everything is at your fingertips, it is essential to have a mobile-friendly website to give people the ease to book their stay from anywhere and everywhere.

Keeping a record of the device and platform used by travelers for hotel reservations, your boking engine data source gives you the percentage of people using which device. Approximately, 72% of US travelers book their hotel on their mobile via the hotel website or mobile app.

It can tell you about the sources from which guests are making their reservations – it could be your hotel app or any ad featured on a nearby attraction page. Knowing the source from where your hotels get the maximum booking helps you strategize your sales plans accordingly.

5. Lead Time

Lead time is the number of days between the date of booking and the date of arrival at the hotel. The lead time depends largely on the purpose of travel. For example, the lead time for a business traveler maybe 10 days but for a leisure traveler it could be two months. Knowing the lead time for reservations helps hotels to start planning and marketing upsells targeting a specific group of travelers. Let us take the example of the leisure traveler. By knowing the lead time, you can plan out special packages or personalized services that will enable you to earn that extra revenue.

6. Guest Profiling and Loyalty

A direst booking allows hoteliers to own the guest booking journey and information. Once a guest completes a stay, a profile is created in the hotel system. Keeping a record of the guests and their visits to your property or the properties within your hotel chain helps you know which clients are coming back. Guest profiling also helps in understanding their behavior, booking patterns, and service expectations. A loyal guest helps hotels reduce guest acquisition costs, making it the most profitable booking source.

Takeaway

The data alone is of no use until you know how to use it. You may have all the data you need but to maximize revenue, you must be aware of what to do with that data. Now that you have the data plus you know to read it, it’s time to bring value out of the stored Booking Engine data points and maximize your revenue.

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