Complex Made Simple

Leveling the playing field in hotel revenue management technology

Missing valuable access to intelligence on competitors, market demand, and changes that occur on a daily basis can put hotels at a competitive disadvantage.

Expedia Group aims to make revenue management accessible and level the playing field Hotels that use Rev+ can benefit from greater efficiency through the ability to make more informed decisions Rev+ offers competitive rate shopping data, demand forecasts, and alerts on the most recent market updates

by David Debeule, Director Market Management, Middle East & Turkey, Expedia Group

 

Hotel revenue management has been around for more than 30 years, yet the adoption of revenue management technology has been slow. Most hotels today are not using technology and data consistently to make revenue management decisions. Missing valuable access to intelligence on competitors, market demand, and changes that occur on a daily basis can put hotels at a competitive disadvantage. On the flip side, in mature markets, hotels are inundated with an overwhelming amount of data from multiple sources and yet, amidst this all – very little actionable insights exist. They often end up asking the question, ‘How can I use these insights?’

On any given day, a hotel without a revenue management technology has a laborious task at hand – and one that is not rooted in the instantaneous insights technology can provide. Think about the number of room types in any hotel, across different days in the future, and across various channels – let alone it's pricing to various demographics and origins. It’s a time-consuming challenge to manage to price manually. Even further, hoteliers today are overly-dependent on static data sets. In addition, many of the methods and technologies used today also make it difficult for hotels to establish their true competitive set. This is why, on average, hoteliers spend between 1 to 3 hours per day on price setting activities.

Travel platform Expedia Group aims to make revenue management more accessible and level the playing field for the global hospitality industry. The organization has embarked on a journey with its lodging partners to redefine how hotels access, consume and act on revenue management technology. Lodging partners have often shared their challenges in adopting revenue management, and Expedia Group’s lodging product teams have spent time listening and reflecting on what they need – essentially, hoteliers want more market insights and access to intelligence to help them make smart pricing decisions. Rev+ is the result of bringing together the power of Expedia Group’s real-time demand and pricing data, international reach and proven technology to help hotel partners save time, be competitive and optimize revenue.

Available as a free revenue management solution, Expedia Group’s hotel partners can access Rev+ via its partner extranet (Partner Central). Users can access, aggregate and analyze the most robust global hotel market data set available in travel. Hotels that use Rev+ can benefit from greater efficiency through the ability to make more informed decisions, ultimately driving increased revenue performance for the entire hotel. Currently, more than 27,000+ hotels use Rev+ and data reveals that hotels who engaged with Rev+ grew their revenue on average by 10 percent faster than the hotels in their competitive set. The top markets that use Rev+ most actively in the EMEA region are:

 

 

One of the unique distinctions of Rev+ is its connection to Expedia Group’s live and global travel marketplace. This means access to its portfolio of 20+ travel brands across 200+ travel booking sites in 75 countries. Rev+ can, therefore, deliver key pricing information for hotel partners and their competitive set for the next 365 days – all in real-time. It is imperative to have access to real-time data when it comes to managing revenue when there are close to 2.3 billion price and availability changes per day, or almost 20,000 changes every second. That’s 60,000 servers with more than 50 million GB of data that is used for our data science features – providing rich revenue management insights, such as market occupancy forecasts and price optimization alerts among others.

With a host of useful features, the top three most frequently used features within Rev+ are:

 

 

Rev+ has been made easy and accessible, removing the hurdles around cost and complexity that have been major barriers to the adoption of revenue management technology. Here are some tips on how you can start optimizing your revenue today:

Plan ahead: You can look at the 365-day view as the opposite of your 7-day view, giving you a more holistic view of your rates for the next year, and compare it at a glance with your competitive set in real time. Additional metrics and visualizations have been added for increased insights. Be sure to customize the metric that is most important to you (i.e. alerts, price optimizations, market occupancy forecasts, and more) and see different visualizations such as heatmap views.

Be informed & stay on top of changing market conditions: Based on how you customize your alerts, you can receive weekly emails that highlight competitive set price changes, market demand changes or price optimization opportunities.  ­

Collaborate actively with your team: Effective revenue management requires teams across the hotel to collaborate actively around strategy and tactics. Leverage your Expedia Group Market Manager to keep up-to-date with market trends, learn new features and consult with them regularly to receive suggestions on using Rev+ effectively to be more competitive.

 

David Debeule, Director Market Management, Middle East & Turkey, Expedia Group

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