In the hotel industry, efficiency is a constant pursuit, and monitoring metrics and creating specific strategies are of utmost importance. In this context, RevPAR (Revenue per Available Room) and RoomREV (Room Revenue) play crucial roles in evaluating and optimizing a hotel’s profitability.
To boost these metrics and generate positive results for a hotel, it is necessary to have a comprehensive approach that considers both revenue maximization and occupancy optimization. This involves various strategies, such as dynamic pricing, adjusting rates according to demand and market conditions, creating packages and attractive promotions.
Another point to the outstanding performance of RevPAR and RoomREV is the use of revenue management and data analysis tools, which contribute to the creation of more precise strategies for the development of each hotel.
In this article, we will cover the key tools you need to know to increase your RoomRev and RevPar. We will explain how each one works and also show how they can help increase your revenue.

Revenue Management Software

Tools in this segment use advanced algorithms to analyze historical and real-time data on occupancy and rates. If the software detects that the hotel is experiencing growing demand during a local event, for example, it may suggest increasing rates during that period to maximize RevPAR and RoomREV.
This type of tool also helps predict future demand patterns, adjusting rates according to market trends. However, to achieve truly significant results, the expertise of a skilled professional is needed for correctly interpreting all the information provided by the tool, and then implementing the best strategies for the property’s growth.

Property Management Systems (PMS)

The Property Management System, or PMS, facilitates the operational routine of the hotel. It is the “brain” of the hotel. It provides resources for monitoring and analyzing financial performance, controls reservations, manages check-in and check-out, and handles daily operations.
This type of tool consolidates all hotel functions into a single system, making the management of daily tasks easier. It also automates check-in and check-out processes and updates room availability information in real-time.

How does a PMS work?

Imagine the following situation: a person has booked a room with a pool view. They will arrive on day X, at time Y, and request a welcome package. The PMS records this information and connects it with the other software to facilitate guest service. It checks the availability of the desired room, confirms the reservation, notes the guest’s requests, and updates the calendar, preventing overbooking.
Since it also records preferences, the reception staff will be aware of what the guest wants, ensuring everything is ready for their check-in on the chosen date. After the guest’s stay, the system generates a report with all the information about the reservation, the revenue generated, and the guest’s feedback. The data is used to improve service and implement more targeted strategies to increase revenue.
Without a Property Management System, the hotel needs to write down all the information in notebooks, increasing the operational overload and the risk of errors, as it is easier to make mistakes when the property’s information is not centralized.

PMS and Revenue Growth

When we improve management through a PMS tool, we streamline management by centralizing essential (and more complex) information, reducing errors, and optimizing service delivery. With fewer issues during the stay, guest satisfaction tends to increase, also elevating the perceived value of the hotel and, consequently, its revenue.

Channel Managers and Channel Optimization Tools

Channel managers are another type of software that manages distribution channels in hospitality. They effectively manage hotel availability and rates across various distribution channels, expanding sales opportunities without compromising rate value.
This system centralizes and updates rate and availability information in real-time, ensuring that all sales channels present consistent and up-to-date data. The pricing strategy is available on all platforms and maintains rate parity. This allows the property manager to receive quick market feedback regarding the price.

How does the Channel Manager work in practice?

Imagine a hotel has three online distribution channels: A, B, and C. If it does not use a Channel Manager, they must manually update availability and rates on each of these platforms, which can be time-consuming and more prone to error.
With the use of a Channel Manager, the hotel centralizes all availability and rate information in one system. When a room is booked on platform A, the Channel Manager automatically updates this information on platforms B and C as well.
This process prevents overbooking and ensures that all channels display consistent and up-to-date information, making reservation management becomes simpler. It is important to choose a CM that is compatible with your PMS, so they communicate with each other.

CRM in Hospitality

The CRM (Customer Relationship Management ) tool was designed to manage customer relationships. Essentially, it is a system that manages all communication with guests, recording and storing relevant information. With personalized guest data, the hotel can optimize marketing by creating targeted campaigns that focus on real customer interests, improving sales.
A CRM system centralizes key guest information like profiles, reservations, and communication history, helping the hotel anticipate needs, offer high-quality service, enhance experiences, and build guest loyalty.

Benefits of CRM Tools for Hospitality

CRM tools offer a range of functions for the hospitality industry. Let’s explore a few of them:

Centralized Data Management

A CRM allows guest data to be stored in one place, contributing to organization and efficient communication between a hotel’s departments.

Imagine that John visits your hotel regularly to attend business events, and you stored his information in the CRM. When he books a room again, the hotel’s reception can access this information and assign him a room closer to the convention center to make it easier for him to get around during his stay. The staff can also choose a room with a work desk for John, which will improve his experience and satisfaction.

Creating Personalized Experiences

CRM systems increase guest satisfaction and loyalty by adjusting services and offers based on their preferences recorded in the database. When a hotel is able to personalize each customer’s experience, offering exactly what they need and want, the service becomes unique. This increases the level of satisfaction, creating a stronger connection between the guest and the hotel. 
Imagine that John often books spa packages during his stays. The CRM system identifies this preference and automatically offers a discount on spa packages in his next booking confirmation email. John will feel that the hotel knows him like no one else and will probably book the spa packages and come back again to the hotel in the future.

Marketing and Segmentation

CRM enables targeted marketing actions to the database in the system, such as newsletters and personalized messages. You can even assign different tags to customer segments to make your communication unique to each group, considerably improving results. The system can also be used to manage loyalty programs and encourage customer retention, improving overall return on investment.

Engagement and Loyalty

A good relationship between guests and the hotel is important to increase revenue. Specific actions can be done to promote loyalty and repeat stays through a CRM, such as automating feedback collection, managing loyalty programmes, and identifying special dates to communicate with your leads.

Hospitality Tools Improve Results

In summary, management tools are essential to boost a hotel’s RevPAR and RoomREV as they provide detailed analysis and an overview on performance, facilitating the creation of strategies that effectively contribute to increase revenue and overall profitability.
Do you want to know how you can improve your hotel’s metrics? Let’s discuss how Regiôtels can assist you.

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