If you run a hotel, you need a property management system (PMS) in place. The PMS is a software platform that enables you to manage your hotel more efficiently by streamlining the various operational processes. Most of the front-office tasks will become simpler and faster from effective use of your PMS.
In this article, we will look at ways to increase hotel revenue by implementing the right PMS.
- Better Pricing
The hotel property management system helps you get pricing right to maximize profitability. The PMS identifies guest trends and demands, thus allowing you to earn more revenue from the same inventory set.
Pricing prediction during the high and low periods depends upon several variables like the season, occupancy rate, room type, amenities, and competitor pricing to name a few. Using this data, you can implement dynamic pricing and safely adjust prices based on occupancy trends.
- Creates Better Upsell and Cross-sell Opportunities
No matter what type of hotel room a customer booked, there is always an opportunity for you to upsell.
Guests are willing to pay more if you provide them services that meet or are tailored to their preferences. Traditional front office software didn’t have enough customer data to broaden the sale opportunities through upselling or cross-selling.
A good PMS system arms you with all this data. You can access trends and patterns of guest spending and preferences, apart from guest behaviour. This will help you effectively upsell different room types by targeting the guests who are most likely to upgrade.
- Go Omnichannel
You never know how or when a customer will book a room in your property. That’s why you need to keep your reception open at all hours of all days. Omnichannel is the best way to do that, which means you allow customers to book online through your website, social media, messaging apps, or even telephone.
Choose a hotel PMS system with an omnichannel feature that allows you to manage reservations that come in from numerous distribution points. The customers won’t be limited to just reserving the room through OTAs or your website, thus increasing your revenue.
Moreover, you can simultaneously track and attribute revenue to each channel. This helps you identify which channel brought you the greatest number of new guests. You can then use this information to calculate opportunity costs and design better marketing campaigns for those channels. This will bring in an influx of guests, and thus, more revenue.
- Manage OTA Payments and Expenses
You can put cloud PMS to work to calculate accurate online travel agent (OTA) payments, manage commission invoices, and understand the ROI for that investment. Without a reliable PMS, you run the risk of paying for more reservations than was actually booked.
A PMS with solid reporting helps you keep track of everything being booked through OTAs. When you monitor these reports, you can control your incoming and outgoing commissions. This will help you save money and add revenue when it comes to OTA.
- Guest Supply Inventory Management
Guest supply inventory management can make or break your room department profitability. You need to allocate the inventory efficiently to find the right balance given business on the books. Too much would force you to spend on extra storage space, and too little may lead to last-minute buying for overpriced products.
An effective PMS will allow you to manage your rooms by letting you access your current and upcoming inventory status. You will also get real-time status and you can update accordingly.
Karan Iyer is an end-to-end digital marketer and blogger who inherently understands the hotel industry with his hospitality background. Karan knows how to convert the pain points and challenges of the hotel industry into business opportunities, and that’s what he writes about for his readers. He also shares industry trends, insights and news to help his readers stay up-to-date. If you don’t have a PMS already, book a demo and see the difference it makes.