Forecasting total demand post-Corona, using historic data to predict total future demand… it’s a challenge. Instead of trying to improve your forecast, you might want to consider changing things you can control, by changing what you sell and how you manage your inventory.
If you would start by adding more products on your retail shelf and introduce smart filters and selling tactics (Why not replace your booking engine with a sales engine?!) you will be much more agile and adaptive towards any type of demand variation.
Let’s look at an example. A classic hotel with 8 room categories sells with 2 different rate plans. A deal rate linked to pre-payment terms and a flexible rate with no pre-payment.
This suggests they have 16 price points available to meet and convert the demand ahead. The art to get it right, being priced too high or too low is evident especially with unpredictable demand.
With a system like GauVendi, by managing inventory in Room Feature Combinations, you can create a multiple of price points available at the point of sales. You can have 16 Room Feature Combinations (representing the value of smaller room clusters) multiplied by 2 rate plans = 32 price points instead of just having 16.
So, let’s take the analogy of fishing, if a person goes fishing with 16 hooks and another person goes fishing with 32 hooks in the same spot, who do you think catches more fish?
An additional benefit is that price automation and instant upselling opportunities double with having more products on the retail shelf.
This is especially powerful when using real time behavioral cues from the booker to bring the right products and price points to the front of the retail window. At the same time, actual manual work decreases (yay!) due to those additional subtle price points, which are being updated fully automated using machine learning and artificial intelligence. More data points allow for more accurate and sensible automation saving labor time in property operations.
Especially in times where demand is fickle, rather than trying to improve things you cannot control, we advocate to change the things you are in control. Complex situations require a sense, probe, and adapt approach which is not possible with traditional ways of managing rooms inventory.
Contact us for more information about a new sales approach!
GauVendi is a Central Sales System with Real Time Revenue Management from the Point of Sale powered by Feature-based Intelligence!