Expedia group is officially launching a new revenue management tool in Australia. Accomnews spoke exclusively with Drew Bowering, senior director of market management for Expedia Oceania, about revenue management and its impact on hotels.
Revenue management tools have been used for years, assisting businesses in making important decisions about what, when, to who and for how much to sell. Pairing data with strategy, these tools are designed to keep hoteliers in the know, and on top of business.
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Expedia has recently released it’s new revenue management tool, Rev+, in Australia. According to Mr Bowering, Rev+ is a digital revenue management tool that provides comprehensive data to empower hoteliers to make smart decisions about pricing, therefore optimising their revenue.
“It’s a virtual treasure trove of real-time market intelligence, provided free to our hotel partners. Hoteliers have told us that their price-setting activities were previously taking between one to two hours, and that they needed to check competitors’ prices three or more times a day and some were even spending thousands of dollars on rate shopping tools,” he said.
Knowing that such tools are critical to hotel business, Expedia’s response to these challenges was to create something that would help hotel managers choose a set of their key competitors, read about the market, and get snapshots of events that could impact the accommodation market.
“Pricing and demand are more dynamic than ever, so it’s never been so important to be thoroughly across your market, your competitors, and your pricing strategy. Rev+ is designed to empower hotel managers to identify opportunities in the market, compare performance to their competitors, and maximise their revenue,” Mr Bowering said.
He also commented that hoteliers’ feedback is key to creating an effective tool.
“For hoteliers who didn’t previously have a revenue management tool in place – and many hoteliers don’t – this will empower them to access the comprehensive market intelligence and analysis they need to make strong decisions about their pricing strategy. A better pricing strategy will, in turn, lead to more room bookings and higher revenue,” he said.
Benoit Jolin, vice president of Expedia’s global product, said: “Our hotel partners see value in the data we provide and have expressed a need for additional support, insights and access to greater intelligence to help them more effectively refine their revenue strategy and make informed business decisions in less time. Rev+ is the start of our revenue management capabilities from which we will continue to build and enhance according to our partners’ feedback.”
Some of the tool’s features include a price calendar, market alerts, a daily snapshot of events, and a competitive price grid.