Outnumbered and limited resources dampen independent hoteliers' abilities to effectively revenue manage
Independent hoteliers, or those who are not part of a larger chain or franchise, often struggle to implement effective revenue management strategies for a number of reasons.
One reason is a lack of resources and expertise. Revenue management requires a combination of technical skills, such as the ability to analyze data and use technology and automation tools, and business acumen, such as the ability to understand market dynamics and make informed pricing decisions. Independent hoteliers may struggle to develop these skills in-house or may not have the budget to hire dedicated revenue management staff. As a result, they may struggle to implement effective strategies.
Another reason is a lack of data and technology. Effective revenue management relies on access to accurate and up-to-date data, as well as the ability to use technology and automation tools to analyze and act on this data. Independent hoteliers may not have the same level of access to data and technology as larger hotel chains and may struggle to keep up with the demands of revenue management as a result.
A third reason is a lack of visibility in the market. Independent hoteliers may have less visibility in the market compared to larger hotel chains, which can make it harder to attract guests and compete for bookings. This can make it difficult for independent hoteliers to effectively set prices and manage inventory, as they may not have as much information about demand and competition.
The Struggle Is Real
Finally, independent hoteliers may struggle to implement effective revenue management strategies due to a lack of scale. Larger hotel chains have more properties and a larger customer base, which can provide them with economies of scale and allow them to better leverage data and technology. Independent hoteliers may not have the same level of scale and may struggle to compete with larger hotel chains as a result.
Overall, independent hoteliers face a number of challenges in implementing effective revenue management strategies. While these challenges can be difficult to overcome, there are steps that independent hoteliers can take to improve their revenue management efforts, such as seeking out training and education, partnering with third-party technology and data providers, and leveraging the expertise of industry consultants.
