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How To Harness Market Intelligence to Revolutionize Revenue

  1. LIBRARY
  2. HOW TO HARNESS MARKET INTELLIGENCE TO REVOLUTIONIZE REVENUE

Market intelligence has long been the lynchpin of hotel revenue management. From the early days when the RM would manually call all the hotels in their comp set to get a daily rate, to today’s automated solutions capable of ingesting room rate data from thousands of properties globally – hotels have long understood the importance of understanding market sentiment.

Market intelligence enables hotels to make data-driven decisions that not only optimize revenue but also improve guest satisfaction and drive operational efficiencies. Informed hotels are better equipped to navigate market changes and respond dynamically to both revenue opportunities and potential losses. 

At Duetto, we believe there are two components to driving a good forecast and therefore a profitable revenue strategy. One of them is the statistical model you use (the algorithm) and the other is the data you feed it. Clean, accurate data is always more valuable than lots of data you are uncertain of. Therefore, it is best to get as close to that data as possible. 

Lead Your Competition

There is a big difference between knowing your competition and following it. Comp set awareness enables you to remain competitive and in tune with demand fluctuations in your market.

Hotel technology providers such as RateGain and Amadeus can provide hotels with vital data to help them monitor and analyze the pricing of their competitors. Each integrates with Duetto, enabling our algorithm to factor in market changes when optimizing room rates.

Rate shoppers provide hotels with the ability to monitor market rates across various distribution channels, including the hotel's website, global distribution systems (GDSs), online travel agencies (OTAs), and other booking platforms. 

When integrated with a revenue management system (RMS), this data helps hoteliers make informed decisions to optimize and adjust their revenue strategies in response to changing market dynamics.  

Understand The Taylor Swift Effect

Big events are back! Destinations have quickly become aware of the economic impact these events can have. 2022 has been filled with stories of how Taylor Swift’s Era’s tour has boosted revenues at hotels close to stadiums.

For revenue managers, factoring event data into a revenue strategy often meant laboriously entering data into a spreadsheet or system. Often, the data could be incorrect, or too late in being actioned, and the opportunity would be lost.

Duetto’s new event feed from PredictHQ takes the leg work out of managing events. Through PredictHQ, Duetto ingests data from thousands of events a year, and highlights this via CommandCenter, enabling revenue teams to act and optimize rates accordingly.

Read this great article by Campbell Brown, CEO, PredictHQ, on the revenue impact of the Las Vegas F1 on hotels this year: https://www.duettocloud.com/library/racing-ahead-how-predicthq-data-fuels-an-f1-hotel-revenue-strategy  

Identify Market Intent

Hotel revenue management has traditionally been focused on historical data and comparing the current scenario with the same time last year (STLY) to gauge success. At Duetto, we believe in the value of looking forward, which is why our revenue tool GameChanger ingests web traffic data from a hotel’s website booking engine to measure bookings, regrets, and denials.

Regrets show when someone visits a website, checks rates but decides not to book – maybe the price is too high.

Denials show when someone checks the website but doesn’t find availability for what they want (for example, the room type may not be available, the hotel is full, or there is a length of stay restriction).

Each data point provides vital market intelligence on what the consumer is looking for, when they are hoping to stay, and their price sensitivity.

Big Data or Better Data?

When it comes to market intelligence, it is the quality of the data rather than the quantity that matters. Clean, accurate, and reliable data is the true catalyst for impactful decision-making.

Going directly to the source is always the preferred method of data collection. Clean data reduces the risk of errors and enhances the overall efficacy of revenue management strategies. 

Clean data that is presented in an easy-to-read manner enables revenue teams to act quickly.

CommandCenter, Duetto’s new business intelligence dashboard, enables you to view the datasets most pertinent to your business. It gives hotels the ability to connect the dots on their data and see the bigger picture.

CommandCenter enables revenue teams to view data for one hotel, one hundred, or one thousand. Helping them zero in on areas of the business that are over or under-performing and instantly see which days require attention due to unusually high or low demand. 

Make Informed Pricing Decisions

Market intelligence helps inform revenue teams to price more accurately in line with demand.

Duetto’s pricing methodology, Open Pricing, enables revenue teams to optimize pricing for each segment, channel, and room type. This allows hotels to target the right customer with the right product at the right time and at the right price through the right channel.

With Advance, revenue teams benefit from Dynamic Optimization, which ensures an immediate response to market-driving changes. Hotels can price in real time, constantly flexing prices in line with changing market demand, up or down, ensuring your properties are always offering the best rates possible.

Access to real-time data and pricing automation gives you more control over your revenue strategy, allowing you to respond quickly to market changes.

At Duetto, we believe in delivering analytics you can use and data you can trust. Download our latest eBook and learn how we work with major data providers and leading technology solutions to turn market intelligence into profitable decision-making: https://www.duettocloud.com/special-reports/how-to-use-market-intelligence-to-drive-your-revenue-performance-and-success 

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Sarah McCay Tams, Director of Marketing Communications.

Sarah joined Duetto in 2015 as a contributing editor covering Europe, Middle East & Africa (EMEA). In 2017, she was promoted to Director of Content, EMEA, and in 2022 promoted to Director of Marketing Communications. An experienced B2B travel industry journalist, Sarah spent 14 years working in the Middle East, most notably as senior editor – hospitality for ITP Publishing Group in Dubai, where she headed up the editorial teams on Hotelier Middle East, Caterer Middle East and Arabian Travel News. Sarah is now based back in the UK.

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