What would it be like if you had to provide input into your cars GPS (global positioning system) for every segment of your upcoming journey?
Just imagine a late night, last minute trip to the store—it’s the only store still open—and you only have 10 minutes until it closes! You, the expert driver can handle the car; but you could always use some 21st century GPS technology to get you there quicker.
You get in, frantically fumbling with the keys to start the car. It’s going to be closed, you’ve got to get going. You input the address into the GPS. Hurry. That warm and friendly computerised female voice, so calm and reassuring prompts you: “Follow the road, then take a left on Main Street.”
You do as she commands, turning left on Main Street. Come on; come on, what’s next? She responds:
“You can either take a left on Green Avenue, then proceed to Lemmon Road, bearing right on Abercrombie, taking the driveway on the left to reach your destination—OR—you can take a right on Baker Street, follow it for three miles, exit Lemmon Road, take a left turn on Abercrombie, and turn right into the driveway of your destination. Please make your choice now.”
What? You’re stopped on Main street: car idling, brain baffled, confused of what to do next. Which route will get you there soonest? Only six minutes left!. You’ll never make it. Delay in the decision cost you too much time.
Why couldn’t the GPS just direct you along the fastest route, foregoing the need for your decision and response for every step beyond inputting the address? Luckily, in real life, it does.
All that’s needed for the GPS to work is the input that provides the initial information. Define where the GPS needs to take you and most systems will even allow you to define how you want to get there. Need to take the shortest route to conserve fuel? No problem. Want to get there as fast as possible, taking the freeway in lieu of the traffic light-laden shorter route? You bet. You provide the parameters and today’s GPS will get you there based on that input. Based on fluid information, GPS keeps track of every second of your journey, adjusting and updating the route in real-time, ensuring your arrival.
It’s the same with systems that automate revenue optimization: you, the expert, provide the initial input, and the system will get you the highest revenue per available room based upon the ongoing fluid information received throughout the booking path. That’s as much of a pitch as I’m going to give you on software—I’m more interested in presenting the concept of how a solution that automates revenue optimization disencumbers you from time-consuming RM processes.
I use the term “disencumber” because RMs must make too many split-second decisions based on an overwhelming amount of dynamically changing data – every minute of every day. So let’s go back to the GPS example: GPS disencumbers the driver from meticulously searching for streets, directions, and signposts. As a result, the driver can focus on “human only” functions such as steering, accelerating, and braking – all while the GPS adjusts and updates automatically in the background, providing the driver with the best routing information for getting to the destination. So a program that automates revenue optimisation does virtually the same thing for the RM: instead of continuously monitoring booking channels and adjusting rates, the RM can focus on more crucial, more human-dependent decisions.
So what would it be like if you had to provide input data for every single function of your revenue optimisation system? Is it hard to image, or is it your daily routine? You, the expert RM, can handle the revenue management; but you could always use some 21st century technology to get you there quicker.
After all, as we know from those last minute late night trips to the store with a “hesitant” GPS: a delay in the decision can cost you too much time, and, of course, money.
Jean Francois Mourier is CEO and Founder of REVPAR GURU, an intelligent online solution that provides hotels around the world with an alternative revenue management software system designed to deliver maximum bookings and profits, as well as the convenience of full automation and integration 24/7. As REVPAR GURU's custom-designed Yield Dynamic Price Engine is the only real-time revenue management system available on the market, it meets the rapidly changing needs of hotels looking to increase their competitive advantage in an increasingly difficult marketplace. REVPAR GURU’s system offers dynamic rate optimization, real-time pricing, integrated internet and extranet yield channel management and GDS sales distribution, to increase a hotel's RevPAR intelligently and effectively, while maintaining rate integrity and automated rate parity. Since 2004, smart hoteliers worldwide have used REVPAR GURU’s software system to increase occupancy, average daily rate (ADR) and RevPAR.
To learn more about REVPAR GURU, please visit www.revparguru.com or call +1.786.478.3500. Follow REVPAR GURU on Twitter, Facebook, LinkedIn or YouTube.
Logos, product and company names mentioned are the property of their respective owners.