In the highly competitive hospitality industry, hotel operators and managers need to have access to valuable data to make educated decisions about the health and success of their property. This data plays a particularly pivotal role in developing the revenue and inventory management strategies at a hotel.
To put it simply, hotel revenue management requires you to sell the right room to the right customer at the right moment, at the right price through the right channel.
Here’s why your hotel needs a comprehensive room inventory strategy:
It allows you to improve your distribution strategy
Your room inventory strategy should identify the various channels that need to be used to maximise bookings during a specific period of time, and also minimise the costs associated with achieving those bookings.
For example, your room inventory strategy should identify the best times of year to employ OTAs to sell a high number of rooms. While these bookings are more expensive than direct bookings, they may be necessary to book the highest number of rooms possible during a specific time of the year. With an effective room inventory strategy in place, you will be able to better identify which distribution partners and channels to include in your overall distribution strategy.
It allows you to accurately forecast
A comprehensive room inventory strategy will allow you to predict when your rooms will be in higher demand and determine how room rates should fluctuate during those peak times.
Beyond simply forecasting when demand will rise and fall throughout the travel season, the best hotel inventory strategies also explain the reasoning behind those trends using accurate, relevant data. You should prioritise data collection efforts in order to create a refined room inventory strategy that predicts and forecasts future demands with precision.
Ultimately, forecasting has a direct impact on a your ability to balance your room inventory levels with their revenue levels, giving them the opportunity to earn as much revenue as possible with each booking.
It allows you to segment your target markets
Knowing that not every room is right for every traveller, it’s important for you to use a room inventory strategy to better develop segmentations. For instance, the luxury suite at the highest level of your hotel property is not going to be within reach for every market segment you sell to.
It’s critical your room inventory strategy accommodates the various types of people who book your hotel, including their interests, age groups, demographics and budget levels, and matches them accordingly with the right rooms to meet their needs. By using segmentation strategies, you will be able to sell as many rooms as possible across all of your different price points at any given moment.
Your room inventory strategy should not be its own entity, working toward its own separate goals. Rather, it should coincide with your marketing campaigns, with your revenue management strategy and with your customer service strategy.