These days, the hospitality industry is using a wide range of tech services due to the increased safety concerns and the rise of remote activities.
As our guide on top hotel technologies of 2021 shows, improvements like increasing customer comfort, service optimization, workflow automation, and smart marketing are gaining momentum.
That’s how smart rooms, mobile keys, and blockchain solutions appeared and became widespread.
However, you need money to install all these up-to-date technologies. In the given circumstances, revenue management systems can assist grand hotels and boutique guesthouses alike in generating more funds.
The core value of this technology is the same for hospitality representatives of any size: it will help capture the maximum value your visitors are ready to bring to your hotel. In this overview, we’ll explain how it’s possible and which parameters this software should possess to be truly effective.
What Are Revenue Management Systems (RMS)?
The notion of revenue management software refers to the diversified set of strategies aimed at increasing the profitability of your company or organization.
Starting from the American Airlines case, the businesses have recognized the advantages of linking value to the specific conditions and yielding more revenue from the segmented pricing. Basically, RMS realizes this idea in technological terms.
The exact appearance of revenue management activities can be different, but all of them refer to finding the perfect place, time, and offering for an accurate service recipient.
The application of revenue management software reveals its best once you supplement this strategic move with the advanced plan containing the best profitability boost practices already used in your hotel.
If you don’t have this plan, here are the things to consider while making it:
Precise forecasting. Set the budget limitations for the nearest season and in a long-term perspective. This way, you’ll better understand your current situation and the exact revenue the technology should generate to boost your profitability.
Analyze your competitors. Determine the traits and characteristics your key competitors possess. Assume which of them leads to greater profitability than yours.
Define the key audience groups. Try to mastermind what are the main categories of your visitors. Are they sole low-budget tourists and businessmen? Are they couples of different income levels? Or is your facility a hostel that attracts one audience category because of constant price dumping? Collect as many assumptions as possible.
Check your technical weaknesses. To get the maximum of the existing software, determine the vulnerabilities of your existing one first. For this, make sure your website has good performance indicators, there’s an online booking engine, and you can do business with your clients online effectively. If any of these parameters are not elaborated, check our guide on hotel management software specifics and refer to our tech specialists to get a consultation.
Why Your Hotel Needs Revenue Management Solutions
Once you’ve collected the set of your hypotheses and ideas, hotel revenue management systems will provide a concrete set of tools to work with them and optimize your resources smartly.
The technology will divide your visitors into segments and offer to supply what they will surely buy. For example, you can provide an extra night for a discounted price for the visitors who arrive late at night, assuming they are likely to oversleep the checkout time and won't mind spending one more night in the city.
What’s important: such an idea will be a data-driven decision.
Also, the software allows tracking typical consumption behavior during the stay. For example, your RMS shows only business-class visitors order dinners, while those who choose standard rooms eat elsewhere (or don’t eat at all).
In this situation, at night, you can leave extra bottles of water or drinks in the cheaper rooms and proactively offer restaurant food to business-class visitors at the time of typical orders.
As a result, you’ll get the maximum revenue for each visitor category in your hotel.
In essence, hotel revenue management means providing the maximum value for each individual guest.
Resources optimization in revenue management can have various manifestations in your hotel. It’s not only about supplying food and rooms cost-effectively.
When it comes to personnel, you can avoid the idle time problem and inaccurate price setting in the selected days of high and low season. As the sum of all these small advantages, you’ll increase your overall revenue significantly.
With revenue management technology, you’ll stop offering your services blindly. Instead, you will increase the loyalty of your visitors and the accuracy of each resource spent in your hotel.
6 Key Contributions of the Effective Revenue Management System
Better allocation of resources. Revenue management solutions should establish an environment where the perfect match between what you sell and what your guests buy constantly happens. Thanks to the intelligent algorithms that constantly track supply and demand, RMS proposes the most effective solutions.
Cost optimization. With the better-allocated resources, you don’t overpay on features and amenities your visitors don’t fancy. On the contrary, you’ll increase the sales of the items already liked.
Taking advantage of fluid pricing. Hotel revenue management systems will help you capture maximum from changing rates. By reacting to the demand dynamics automatically, you can increase the price of your services accurately.
A better understanding of your competitors. With the revenue management software, you’ll get an all-in-one overview of everything happening in your market segment. This way, you’ll get the full picture and will change prices smarter and more accurately.
Easy scaling. Of course, you can rely on your own observations and make decisions on the resource allocation manually. But if you have ambitions to grow and become a big hotel, automation of the key processes is what you’ll need first and foremost.
Informed decisions. One of the main contributions of hotel revenue management systems is collecting loads of essential data about your hotel and guests. With this information at hand, you can become more accurate in your assumptions and decisions and know what your customers really want — even if they don’t articulate their wishes proactively.
Things to Consider before Implementing Hotel Revenue Management Services
Like any technology, hotel revenue management software requires specific knowledge and proper understanding of what the project aims are from the executives.
Revenue management by itself is a complicated area where numerous specialists work and different metrics are adopted.
Nevertheless, the technology should be easy-to-use and unite all these distinct parameters in one solution. This way, all the workers in your hotel can work with it and detect the information needed for them to work.
Checklist to an effective hotel revenue management introduction:
Determine where you are today. You need to provide a detailed picture of the current state of your hotel.
Set your ideas and hypotheses. Make assumptions on the profitability boost needed, resources available, and guest categories.
Find a reliable technology vendor. While choosing, check the professionalism and discuss the project in detail prior to paying.
Keep in touch with your vendor. While implementing the software, communicate the progress with your vendor. This is needed to adjust the project on the way.
Pass the training. Due to the software complexity, all the workers who work on your hotel's profitability must learn how to use it.
Test your hypotheses and improve them. Don’t expect revenue management software to be a magic button that will increase your profitability in a day. You still need to input the data and do something with the conclusions. Consider technology as the tool that will help you work more accurately and analyze information better and faster.
Ask Intellectsoft to Design and Install Hotel Revenue Management Software for You
You can look for a freelance revenue manager to increase your hotel’s profitability — or get more accurate, sophisticated, and professional equipment instead.
Intellectsoft developers are ready to install customized hotel revenue management systems of any appearance for you. Upon request, we can empower the software with other technological innovations of your choice.
Intellectsoft is a software development company specialized in delivering top-notch digital solutions to companies of different sizes and representing various industries.
Let our experience serve your project aims too! Talk to our experts, and let’s decide on the software that will help your hospitality business profit!
The hospitality industry depends a lot on keeping customers happy, but it’s getting harder to attract and keep them. The pandemic hit this industry hard, and now market competition is tougher than ever, with competitive offerings swaying customers. Hospitality businesses are willing to spend big to win customers back. The main questions for many are: how can we stay ahead of the competition, keep our customers, and increase revenue? Keep reading—we’ve got some answers.
Customers today have so many options that getting their attention is a real challenge. It’s not easy to make them choose your business over others. What worked 10 years ago doesn’t work the same way now. Back then, people often chose businesses based on reputation. But with new types of businesses (boutique hotels, craft cafes) popping up or big enterprises getting a new strategy, expectations have changed. The good news is these businesses have shown what works: great customer service. They focus on personalizing the experience, making things easy for customers, offering loyalty programs, and using smart technology.
In this article, we’ll explore these tech strategies and show you how they can help your business grow, and double the revenue. Keep reading to learn more!
The Importance of Customer Satisfaction in the Hospitality Industry
Customer satisfaction, which equals exceptional customer experience, is the backbone of the hospitality industry. It plays a central role in driving revenue and loyalty, as satisfied customers are more likely to return and recommend a hotel, restaurant, or other hospitality business to others. In fact, a study by the Harvard Business Review found that a 1% increase in customer satisfaction can lead to a 0.5% increase in revenue. Moreover, loyal customers are more likely to forgive mistakes and continue doing business with a company, even if they experience a negative encounter.
Let's quickly review the challenges the hospitality industry is facing right now so we can move on to the solutions and our case studies.
Challenges in Hospitality
As businesses navigate the changes in the hospitality industry, there are some key areas where a little improvement can go a long way. From improving customer service to embracing digital transformation and tackling labor shortages, we’ll take a closer look at today’s biggest challenges—and, more importantly, how technology can step in to help. Let’s get started!
Poor Customer Service
Even with strong and high-quality business offerings, poor customer service can drive potential customers and existing customers away. Common issues include:
Long wait times in customer service queues (it is worth remembering that our attention spans 8 seconds, and we live in a very busy world, so quick and efficient responses are more important than ever.)
Poorly trained customer service representatives
Lack of follow-up
Services not being done properly or quickly
Recall issues that require multiple service calls
These problems can frustrate customers. But, at Intellectsoft, we believe that the right approach, combined with technology, can address them effectively.
Digital Transformation Gaps
Approximately 50% of hotels are adopting new technologies, with 43% automating repetitive tasks and 39% upgrading existing systems. Source: workstaff.app
While many businesses are adopting digital solutions, some still struggle with outdated systems and fragmented data. Legacy companies often face chaos when trying to manage their data and create new systems or add features.
Some of the recent examples include clients coming to us to create AI solutions for their services while their data simply was not ready for the advanced tasks. We advise stepping back, communicating with a company objective, and working on keeping the data clean (centralized, structured, and segmented).
When we’re asked to create advanced systems using AI, we always emphasize the importance of organized data. To train AI and build such complicated systems that truly work, you need to start from the very beginning—collecting, storing, centralizing, and organizing it. We encourage our clients to align all departments to work internally on the data so we can create a unified digital system that delivers personalized experiences.
If you’re unsure where to start with your data, we can help. Collecting feedback at various touchpoints along the customer journey is crucial for gaining insights into customer satisfaction and loyalty. Book an IT consultation with us, and our experts will guide you in mapping out a path to get more from your data and build a system that works for your business and team.
Reskilling Staff
The pandemic hit hard in early 2020, especially for the hospitality and travel industries. Even five years later, many businesses are still feeling the impact. Recruiting and retaining skilled staff has become a major challenge post-pandemic.
Reskilling to address technology’s impact is of utmost importance, as about 40% of hotel General Managers place it among their top three workforce challenges.
We strongly believe that adopting the right technology can help. For example, creating an app to train your staff not only saves time but also ensures consistency in learning. AI assistants can also work alongside your team, helping with tasks like recruitment (providing industry insights, crafting emails) and staff training. Imagine having an app dedicated to making your team’s work easier and more efficient!
How Technology Tackles These Challenges and Supports a Customer-Centric Hospitality Culture
Automation, AI, and similar technologies may threaten many. However, the debate about replacing humans isn’t about that—it’s about cooperation and working hand in hand with technology to achieve the highest standards and establish brand-new “golden standards.” Technology is here to assist staff in listening to and collecting customer insights from data.
Let’s review some of our cases to see examples of how technology helps improve customer experience and supports customer service.
Examples of Intellectsoft projects
Property management systems (PMS)
We created a web platform and mobile app that makes managing daily tasks easier and offers extra services to improve residents’ experience. It gives a clear overview of daily activities and helps with managing units and users. Residents can easily book amenities, submit service requests, and report incidents. The platform also includes features for equipment management, key instructions, workflows, and custom permissions. This makes it easier for staff to stay on top of equipment and ensure residents have all the information they need. Plus, tools like announcements, quick votes, a forum, and a community calendar help build a connected and engaged community.
Guest Experience Management App
Our next app helped our client improve their guest experience by replacing printed marketing materials and the need for phone calls with a smart solution. Now, guests can easily order in-room dining, make reservations, and interact with staff— through a simple tablet in their room. The solution includes three parts: a custom in-room tablet with a variety of services, an admin panel for hotel staff and service providers, and a backend system that connects everything together. This approach makes things easier for guests and staff, improving both convenience and efficiency.
Existing Customers First: Building Loyalty with Personalized Touchpoints
Keeping existing customers is not just a strategy; it’s well-known that retaining existing customers is more cost-effective than acquiring new ones. In fact, research shows that it costs five times more to acquire a new customer than to retain an existing one. KPMG named customer retention as the number one revenue driver for the company.
Moreover, a 5% increase in customer retention can lead to a 25% to 95% increase in profits, showing the significant impact loyal customers can have on a business’s bottom line. Retention strategies, like personalized experiences and loyalty programs, can foster long-term relationships and generate recurring revenue, ultimately making them an invaluable part of any business model.
Personalization: How Technology Can Help?
Everyone loves to feel special—it’s part of being human. In hospitality, personalization has evolved from being a luxury to an essential standard. With the right technology to manage your data effectively, you can deliver those “wow” moments that guests won’t forget.
More than half of hotel chains are already using personalization features on their websites, booking platforms, and apps, and another 39% are planning to follow suit soon. They’re tailoring experiences to fit guest preferences perfectly.
Source: Deloitte
How does technology make it happen?
CRM Systems: They help you keep track of guest preferences, booking history, and special requests so you can offer services tailored just for them.
Loyalty Programs: Personalized rewards and offers show your guests that you value them, keeping them coming back for more.
AI Personalization: AI analyzes guest data to predict what they’ll love (from room upgrades to local recommendations) before they even ask.
IoT Gadgets: Smart room features like voice-activated assistants, or temperature controls adjust to your guests’ preferences, making their stay more comfortable.
With tech-powered personalization, you’re building loyalty and maximizing the lifetime value of every customer.
Our Case Study: Smart Hotel Management & Loyalty Program
For one of our clients, we created a smart room solution, complete with a custom IoT system. Guests can use a mobile app to control services, explore amenities, and find resort information-- with a special touch to their suite type. For the client’s entertainment business, we improved their legacy software by running a full IT and code check, fixing issues, and making the system better for customers.
Along with that, we developed a mobile app for the loyalty program, allowing businesses to effortlessly reward their customers and keep them engaged with exclusive benefits.
Our solutions not only helped the client with special experiences for guests; it also improved operations, cutting costs by eliminating inefficiencies. Here's what our experts shared:
"We transitioned away from ESB (Enterprise Service Bus) systems, which previously cost millions, and replaced them with more efficient, self-managed solutions. Similarly, we’ve implemented Device Farms that improved operations and saved resources."
Leveraging Software to Increase Upsell Opportunities
Here are some examples of tech tactics that will help your team sell more and introduce new offerings to existing customers, improve overall efficiency leaving your team grateful:
Dynamic Pricing Algorithms
For finance and marketing teams, manually calculating pricing by segment to introduce your clients can be incredibly challenging. AI-powered tools can strongly optimize these strategies by analyzing your database in detail.
Upselling via Apps
Boosting revenue in the hospitality business often comes down to personalized experiences. Imagine this: a guest books a room, and then your app suggests a spa package or a room upgrade at just the right moment. Later, it nudges them to book a dinner reservation or a guided tour designed to their preferences. With apps offering these personalized recommendations during and after bookings, you’re not just increasing your revenue per guest but also skyrocketing their experience. And you do it in a sustainable way, not by speculating, but by offering what your customers desire based on their previous experiences. It’s a win-win: seamless, helpful, and far from pushy.
Inventory and Resource Management Software
Making every resource count in your hospitality business is key. Inventory and resource management software allows you to effortlessly track everything from linens to room availability, ensuring nothing goes to waste. Having real-time insights to reduce overstock, avoid shortages, and optimize operations assists sustainably keep everything under control and know what you need to focus more. It helps maximize room occupancy by aligning bookings with available resources, ensuring every room and item is used effectively. This approach leads to smarter management, better guest experiences, and a noticeable boost to your bottom line.
Adopting these strategies not only optimizes your operations but also drives business growth. Ready to discover how technology can elevate your goals? We’re here to create a tailored solution for you.
Steps For Implementing a Customer Service Technology Solution
Improving customer service in hospitality doesn’t have to be a daunting task. With the right technology, you can smooth the path of your operations, speed up response times, and elevate the overall guest experience. Here’s where you can make it happen:
1. Understand Your Needs
Start by identifying the challenges your business is facing. Are you struggling to manage high volumes of inquiries, track customer feedback, or personalize the guest experience? Pinpointing your needs will guide you to the best solutions.
2. Pick the Right Tools
Choose technology that aligns with your goals. Look for solutions that are scalable, easy to use, and integrate effortlessly with your current systems. Options like CRM software, live chat tools, or a guest experience app can make a difference.
3. Equip Your Team
Technology is only as effective as the people using it. Train your staff to make the most of the new tools, so they can deliver exceptional service and resolve issues quickly. Confident, well-equipped staff creates happy, loyal customers.
4. Keep Improving
Once implemented, monitor how well the solution works. Are response times improving? Are customers more satisfied? Regular evaluations will help you fine-tune your approach and keep things running harmoniously.
Some Tech Ideas for Hospitality Businesses
CRM Software: Manage customer interactions and preferences.
Guest Experience Apps: Delight guests with personalized experiences right at their fingertips.
Amenity Management Systems: Simplify operations for everything from room service to facility bookings.
Live Chat Tools: Offer instant support and answers.
Social Media Management Tools: Keep customer interactions engaging and organized.
Integrating these strategies will not only improve your customer service but also deliver unforgettable customer satisfaction, loyalty, and, ultimately, your bottom line. Ready to take the next step? Book a consultation with our experts.
Conclusion
To wrap up everything we've discussed, customer satisfaction and experience are at the heart of hospitality. Retaining customers is more than just keeping them around—building strong, long-lasting relationships and consistently meeting their evolving needs. By understanding their pain points and offering personalized solutions, you can inspire loyalty and drive progress. With the right technology and continuous improvement, your business can stay ahead, let go of what no longer serves you, and keep growing.
At Intellectsoft, with over 17 years of experience in software development, our expert team is ready to help. We create everything from mobile apps to full-fledged portals and systems, leveraging the latest technologies like AI, Cloud, and Machine Learning. With deep experience in the hospitality industry, we’re here to craft personalized solutions that bring your business unforgettable customer experience and retain your valuable clients.
Ready to double your revenue and level up your customer retention strategy with personalized technology? Contact our experts, and we look forward to working hand in hand with you to build or revitalize the perfect app or system for you.
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