Big Data and predictive analytics are poised to make a major mark on hotel revenue management in 2017. Access to new, forward-looking data sets are expected to provide additional insight into market demand, and integrating customer data will allow hotels to better anticipate their guests’ needs and personalize every aspect of the guest stay, including a tailored rate.
As we all dive into the new year, hotel owners, operators and revenue strategists are probably a bit perplexed as they try to determine what kind of 2017 it will be. Will the hotel industry’s long upswing continue with further increases in occupancy and higher levels of average rate? Or will the merry-go-round finally come to a stop and everyone need to devise ways to gain bigger shares of declining or flat markets?
When you own residential and commercial real estate as well as hotels, it gives you a bit of a different perspective on things. That’s certainly what the guys at Vornado Realty Trust bring, and their strategy behind the 1,700-room Hotel Pennsylvania in the heart of Midtown Manhattan is a testament to their ability to think outside the box.
Many of us in the casino-hotel world have worked with competitive sets, some we inherited and others we created ourselves. These competitive sets are how we see if our rates are in line with the market and then how we fared against the market.
The worst news a revenue manager can hear is that a new hotel is under development across the street or even across town. The only thing worse is when an entire market is in a building boom. Managing rate and distribution strategies in a market of expanding supply might be the toughest task of all for a revenue strategist.