Technology for Hotel Revenue Management Set to Boom: New Skift Research
Photo Credit: Hotel hallway with blue lights Flickr / Hans Splinter
Skift Take
The large majority of hotels still rely on Excel spreadsheets, trial and error, and gut feeling when setting prices. In an increasingly complicated distribution landscape, many will start looking at revenue management tech to improve performance.
Hotel revenue management has come a long way over the past decades, but there is still a lot of potential for growth left. Since its first iterations in the 1990s, some form of revenue management is practiced in most hotels today, but as distribution costs soar and rate parity issues persist, revenue management needs to become more sophisticated.
In The Hotel Revenue Management Landscape 2019, we research the prevalence of revenue management tech in the industry, concluding that more than 80 percent of hotels worldwide do not currently use any sophisticated technology to help with pricing and setting revenue strategies. Our analysis of in-market revenue management systems provides clarity on product functionalities and differentiators, and we expect to see a sea change over the coming years, especially with the long tail of small and independent hotels moving toward the use of tech to enhance their revenue capabilities.
Last week we launched the latest report in our Skift Researc
