The past two years have shaken the industry trends. Revenue Management is traditionally using algorithms that rely on historical data and trends. Those were thrown out of the window in March 2020. Booking trends, customer segments, distribution channels have changed several times since then and now with the pent-up demand we are yet again facing new changing trends - changes in preferred destinations, shifts in segmentation and booking habits are impacting the new trends we are only just building new trends for. The race to capture market share has shifted once again.
To cover for the losses of the past years there is more pressure to manage profitability which saw a rise in total revenue management development over the past few years from mere talking points to actions and digital solutions. Pandemic gave rise to digitizing the customer journey and continues as a strong trend. Revenue management trend related to this is digitizing the customer journey including attribute-based pricing, upselling either during booking path or via pre and post communication. Being able to book additional services digitally while booking a room has at last become a standard - Nelson PMS booking engine has allowed add ons such as breakfast to be bookable from the beginning.
The need to digitize the customer journey and automise the operations become more important the smaller the business is.
Direct channels increased in popularity with domestic travelers, yet with international travel on the rise, the mix is shifting again bringing pressure on channel management. The loosened-up booking terms & conditions will also see another shift now with travel restrictions lifted.
However, when your business is simpler and does not offer various attributes and additional services the need for complex systems and integrations is also less. For smaller businesses there are less resources for analytics and revenue management, yet there is a need to remain competitive and price dynamically. The need to digitize the customer journey and automise the operations become more important the smaller the business is.
A certain capacity volume is needed to take full advantage of revenue management automation whereas for one unit accommodation the human created strategy plays a bigger role. When there is more capacity to sell the Nelson Pricing Bot runs smoothly - the owner only needs to set the strategy for the system to follow at installation and when remarkable market changes take place. There is no need to have 24/7 monitoring nor integrations as the Nelson Pricing Bot is a built-in part of the PMS. No more surprises when large events are announced or when your revenue manager is on vacation as Nelson algorithm and AI will react to changes automatically.
To ensure successful results Nelson connects to daily market share trends* allowing the management to review the success of the chosen strategy and action based on market, rate and RevPAR results. With Nelson Pricing Bot businesses can increase their revenue and market share when combined with clear strategy, goals, and marketing.
About Nelson
Born out of the desire to ease the burden on small hoteliers, Nelson is more than just software. It's a comprehensive property management system designed to empower you to run your business efficiently and effectively. We understand the unique challenges faced by small hotels, and our all-in-one platform streamlines daily tasks, maximizes bookings, and simplifies guest communication, allowing you to focus on what matters most - delivering exceptional hospitality.