It’s no secret that the competitive landscape in Thailand’s hospitality industry is more intense than ever**. **The growth in hotel supply across the Asia Pacific region is putting pressure on all hoteliers to ensure that they are attracting the right guest at the right time and for the right price. But what should Thai hoteliers be doing to drive revenue growth and maintain market share?
Hoteliers should be aware that not all business is good business, and 100% occupancy is not always best. It is easy to fall into the habit of accepting too much lower-rated business in order to fill the hotel to maximum capacity– which may result in turning away higher-rated business. With the adoption of revenue management technology, hotels can confidently identify the right mix of customers to provide the greatest and most profitable long-term value to the business.
In the past, basic revenue management looked at a hotel’s booking history and current booking pace levels to forecast demand. During periods of high demand, revenue managers increased rates. When demand was low, they discounted them, thereby increasing revenue under both scenarios. In today’s digital booking environment, forecasting and pricing decisions are significantly more complex. With much of the Thai market heavy reliant on online travel agents (OTAs) and flash sales, booking patterns and market demand changes very quickly. It’s therefore essential that revenue and reservation managers have up-to-date access to trending information so that they can react in time to take advantage of demand changes and either a) maximize their revenue position or b) implement new strategies to manage demand downturn.
In such a high-speed environment, manually collecting, evaluating and calculating data via Excel spreadsheets is not only a tedious process, it’s also highly susceptible to error which can lead to missed opportunities. This is where revenue management software can make a huge difference impacting occupancy levels, length of stay and average rate results. Through a series of specialised algorithms and calculations, revenue management systems automatically assess hotel performance on a daily, weekly, monthly and annual basis – reviewing the booking patterns and market place demand. This allows Thai hoteliers to quickly compare rooms sold and revenue against data at the market and total hotel level – information vital to grow future hotel revenue and profitability.
A common misconception held by many independent locally owned hoteliers is that the revenue management technologies and systems used by large national or international hotel chains are cost prohibitive and require extensive experience to use. There are a number of solutions on the market that are suitable for destination local brands and limited service properties, such as the IDeaS Pricing System, which is available through our Thai partner, Smart Finder. Hotels of all sizes and types can now affordably select a revenue management system that can be managed with limited resources to achieve immediate revenue uplift and allow local brands to compete with the same technology and insights as the major international brands.
Smart Finder believes that having an effective revenue management strategy is “a must” for Thai hotels as it immediately improves profitability and creates sustainable competitiveness of any hotel having it. Partnering with IDeaS, a SAS company, Smart Finder brings the best in class Pricing System to the Thai Hotel Industry with the aim to revolutionize how Thai hotels practice revenue management that results in higher profitability.