Why hoteliers should care about revenue management even during a pandemic

Which are the multiple benefits of revenue management and the valuable optimizations it can offer to a small or big-brand hotel, especially while living in turbulent times like these?

One thing that is certain for the years to come is that, in the center of everyone’s attention – whether we are talking about entrepreneurs with businesses in the tourism industry or other professionals – should be technology solutions that are able to contribute to a smooth and timely transition not only to the new ‘landscape’, as imposed by the outbreak of the pandemic, but also to the inevitable digital transformation of all stakeholders.

In this rapidly changing business environment, innovative solutions such as those RevApp and Reveffect can offer – 2 of the startup teams that successfully completed the second and third cycle of our Acceleration Program, respectively – are a real no-brainer for hotels and their viability.

Dynamic pricing, secure demand forecasting, saving valuable time and resources when it comes to the hotel staff, or even promoting upselling and cross-selling once the guest is at the hotel are only a few of the significant advantages implied by tech applications such as those the 2 aforementioned companies offer. But, why not let the experts themselves give us the “big picture” regarding this particular field? The co-founders of RevApp and Reveffect shared with us more details about their innovative services and the added value they give to tourism industry leaders.

⇒ Which are the specific benefits of your applications for hoteliers? Is there a positive feedback from market leaders?

RevApp: Indicatively, the benefits of our platform are summarized as follows: more accurate pricing, faster pricing decisions, reduction of human resources related to renewal of pricing, as well as more free time for the hotel staff or hotelier to make it available for other productive activities. Based on our meetings with hoteliers, it is a fact that most of them consider the dynamic pricing of their rooms as “the holy grail” in revenue management. Besides, we should not omit to mention that large hotel chains (such as Marriott, Intercontinental, etc.) have even developed their own software for dynamic and automated room pricing. However, small hotels do not have the financial resources to develop such tools on their own.

Reveffect: Our innovative tools help hotels not only save time and money, but also make right decisions regarding the pricing of their rooms and their strategy, by taking into account several parameters such as competition prices, demand, travel restrictions, emerging trends and more. To date, our tools are used by more than 30 hotels in Greece and Cyprus, while their satisfaction can be proved by the fact that we receive many referrals on a daily basis. It is obvious that small and medium-sized hotels have already realized how important it is to outsource their revenue management to pioneering companies in this field.

⇒ How did you manage to adapt as a team to the new circumstances imposed by Covid-19? Are there any specific optimizations you proceeded with?

RevApp: Covid-19 has not particularly affected our business operations apart from the fact that, of course, our team is now mostly working remotely. In the coming months, we are going to boost even further our sales and proceed with teleconferences. However, this situation creates some problems when it comes to closing a sale more easily…

Reveffect: We managed to adapt quickly to the needs imposed by the pandemic and our services/processes have followed the new trends, even in the way we are currently setting up the strategy for our clients/partners. Indicatively, we have reduced the cost of our tools, while we keep offering our services for free for 3 to 6 months to all those who have been affected by the current crisis.

A few words about the 2 startups

RevApp is a machine learning dynamic pricing tool which helps hoteliers and vacation rental managers automate and improve their room pricing.

Reveffect offers hotel revenue management services. Thanks to its technological solutions and innovative platform, the company automates the room pricing and the revenue management strategy of its clients.