Skift Take
Hotels need to put aside their frustrations with software for forecasting and rate-setting. Revenue mangers will need all the help they can get to make sure they grab their fair share of the recovery in bookings.
Coronavirus-related shocks to the hotel sector have put revenue management systems to the test. Makers of software that predicts demand and recommends rates are still working to shore up their algorithms, and even now, a lot of human intelligence is needed to make up the gaps.
The revenue management systems haven't been as helpful as they could've been during the pandemic, some hoteliers said confidentially. But other hotel revenue managers said technology had been a critical aid and that you can only expect so much during a crisis of this magnitude.
"The rebound from the crisis could be revenue management's finest hour," said Kelly McGuire, managing principal of hospitality for ZS.
Back in March, Skift asked revenue managers "how should hotels set room rates now and after the coronavirus crisis?" Since then, hotel revenue managers have raced to figure out pricing while dealing with waves of staff cuts.
"For hotels, what's important is to do quick price-testing to find the rate level where you get conversions," said Nina Wittkamp, a Munich-based expert associate partner for McKinsey & Company. "That requires brands to test a lot of offers in each market."
When Your Competitors Have Changed
One wrinkle facing revenue managers is that the crisis may have confused their sense of which other nearby, comparable properties are their real local rivals.
"Your competitive set has probably changed in the short-term," McGuire said. "If you're a resort that has shut down the restaurants, spa, and pool, are you much different in a consumer's mind with the proverbial Hilton Garden Inn down the street, even if you have nicer linens? If you're competing with that propert