What are the advances in the management of large hotels?
Vivek Bhogaraju, head of solutions for Expedia Group's ad management platform, shares his insight on a central theme of the industry
By Vivek Bhogaraju, head of solutions for the Expedia Group membership management platform.
Reflections on Phocuswright's recent studio and challenging picture of the dynamic management solutions that are on the horizon.
In the digital age, where innovation takes place at the speed of light, it is difficult to believe that it is the only way around 15% of global housing properties to provide for the technology of management of people.  They are regretting that the practices and novelties have existed for over 30 years.
Motivated by this disconcerting statistic of the industry, we commissioned Phocuswright  to conduct a global study of the state of management of the ingratiating hotels from the perspective of managing the results and revealing results.
The information overload, the disparate hospitality systems and the growing complexity of online distribution. So, it is not easy to solve the short cut.
-The prevalence of the internet, travel agents, travel aggregators and the transparency of prices resulting in what has been impossible for income managers to do is what they need to be: well to manage housing inventory and make decisions of timely manner prices to boost the yield of the ingresos.
-With large data changings from different distribution channels, senior managers have to spend 50% of their time collecting information, leaving limited time to analyze and execute decisions that ultimately have a well-reasoned management strategy. highlight of the rest.
-But the big properties and the hoteliers are not immune either. The study found that, although most of the management companies and properties belonging to each of them have access to the management technology of the participants, many of the hosting administrators cancel the recommendations of the system they have for the management of the required prescription of the brand. if by local knowledge the "lack of faith" in the suggestions.
Many managers note that “there is insufficient information important” such as: the type of reservation, if only the dwelling, if a space is required for events or the status of the guest loyalty program is relevant to the process and that it is. No siquiera is the final.
-Increasing the vacancy rates to cut and alternative accommodation (which is not so!), Adds a new complexity that obliges the administrators of rethinking their decisions of prices and pronouns. Research has found that even at the expense of these questions: in this fluid market, how do we define where it fits into our property, what is our competence?
The opportunities for the future
1-Less technology and poor skills in management of income.
If there is a consensus among the participants of the studio to know what action needs to be taken by the industry to create standards of information and open architectures to support the adoption of technology for management of students. Ingrowth managers seek to have an ingrowth management technology that can really be integrated, based on the cloud, a solution with insights that is able to integrate, validate, and share data from the universe of hotel systems and provide practical recommendations.
However, only some properties implement the technology of management of ingrosos and no way to advance the industry. We need to see the capabilities of managing separate items from the technology solutions dedicated to it, as there is widespread adoption of prices based on data and pronounced decisions. Unfortunately, traditional technological solutions imply obstacles such as cost, complexity, and the need for a specialist to manage the inheritance, which does not work well for the larger hospitality industry.
By what means would we eliminate these inconveniences and allow each hotel, regardless of its geographical location, to make better price and pronouncement decisions every day? On the ground we would hope that our respective markets would work better, but as a sector we would be better served with rational, consistent and timely decisions.
2-Travel intermediaries to fill the information gap.
As consumers' shopping path changes online, travel intermediaries are increasingly used to provide more information, such as destination demand data and passenger purchase information, which is simply not available at other places.
In fact, when observing how the hotel revenue management works, it currently tends to focus more on the demand for rooms and space for events at the property level. With the evolving distribution landscape, travel intermediaries can unlock valuable information such as: what is the demand for the destination, price response attributes, conversion rates and data from competitive sets in real time.
Closer to home, on Expedia Group, there are more than 3 billion search combinations for travelers every day. There are 20,000 accommodation prices and availability that change every second. With more than 2 billion daily data exchanges on the platform, our travel partners can incorporate demand information and make revenue management decisions to anticipate where the market is going.
In the study, a senior executive of the revenue management chain said: "With better demand information for the destination, there is the possibility of reducing the forecast error from 10% to 2%."
3-Prescriptive narration: humans and artificial intelligence join forces.
The real advance of revenue management technology lies in the ability of machine learning to: add and analyze data, make clear and prescriptive recommendations, as well as allow users to understand the results of their actions. Simply put, revenue managers expect to receive recommendations in a simple way.
In this world driven by artificial intelligence, where revenue management technology competes to leverage data and its strengths, let's not forget that - ultimately - it will depend on humans to act on data. We must all aspire to have a future in which people and machines really unlock income growth opportunities as a result.
Wouldn't it be great if income management technology spoke your language? Wouldn't it be valuable if income management capabilities simulated what would happen if particular actions were taken? What would happen if those actions were not taken?
Call for collaboration for the industry
Mark Twain once said: "The secret to getting ahead is to start." With new opportunities in the competitive landscape, it is time for the best minds in the industry to come together and start building a new and collaborative platform for the practice of hotel income management.
At Expedia Group we are committed to democratizing access to income management technology and helping our hosting partners boost their performance, but we cannot do it alone. Personally I would like you, partner, to let me know if there are opportunities for our teams to collaborate in the adoption of income management practices, regardless of the location or size of your property. I am convinced that together, as an industry, we can make this happen. Let's do it!