Closing the gap: How independent hotels can leverage data to compete with large chains

These giants of the hospitality industry benefit from a wealth of resources, dedicated teams across multiple functions, advanced hotel technology platforms, extensive marketing programs, an established brand that consumers trust and customer loyalty schemes that consistently draw repeat visits.

However, the rise of affordable and easy-to-use cloud-based software, which utilizes real-time data sets to provide immediate, actionable insights, presents a real opportunity to narrow the gap with larger hotel chains.

Automation and the power of data

As an independent hotelier, you have a lot on your plate, and that’s an understatement.

Ensuring your business is performing at its best and managing your property while simultaneously delivering exceptional guest experiences is a tricky balancing act.

That’s why using technology to automate typically manual processes can be seen as a turning point for independent hoteliers. It can transform what were labor-intensive tasks into seamless workflows requiring only the lightest of touches.

By using intuitive software designed specifically for independent hoteliers you will see a number of key benefits:

• The automation of time-consuming tasks streamlines your day-to-day operations and removes human error, leading to improved efficiency and cost reduction

• With demanding, manual tasks eliminated from your workload, you can focus on better serving your guests along with other high-value activities

• The accurate and actionable data at your disposal enables you to make better commercial decisions to increase your revenue

You shouldn’t see the shift towards automation and data-driven decision-making as a flash in the pan but a long-term strategic move to set you apart in a competitive market.

The wealth of under-utilized internal and external market data at your disposal is a sleeping giant and, when awakened, it has the potential to catapult your hotel's commercial and operational performance beyond what you thought possible.

Let's look at how you can use these data sets to compete with larger operators by adopting the right technology.

1. Modernize your hotel’s operations

Running a hotel is made up of almost countless responsibilities: from supervising reservations and orchestrating check-in and check-out procedures, to tracking room availability, managing guest communications and synchronizing housekeeping duties. And that's just scratching the surface.

Traditional ways of handling these tasks, although functional, are often time-consuming and inefficient. Hospitality technology exists in the form of a Property Management System (PMS) which can optimize your hotel’s operations.

A cloud-based PMS serves as the central nervous system of hotel operations. It offers a granular view of both front and back office activities and automates operational tasks across functions such as housekeeping, reservations and payments.

It not only bolsters operational efficiency and flexibility but also enriches the guest experience by giving you quick access to personalized guest data and freeing up your time to act upon it.

Although a PMS acts as the operational nucleus of your hotel, its other key strength lies in its ability to connect with a variety of other tools and systems, making it easy to access and integrate relevant data.

When your PMS is connected with solutions such as a channel manager and a pricing recommendation tool, you expand functionality, drive efficiency and achieve better business results.

While a PMS might not be the panacea for all operational challenges, it does lay the groundwork for hotel operations so you can focus on driving revenue and fulfilling guest expectations.

2. Revenue management made easy

As an independent hotelier, when you see the words revenue management, you may think to yourself, "That's too much work and too complex to get a handle on when I've got what feels like a million tasks to complete."

Well, it’s time for a rethink.

There are now tech solutions engineered for independent hoteliers, offering you the ability to dip your toe into the pool of revenue management and still reap the rewards typically seen with a much deeper immersion in this commercial strategy.

The automated, data-driven insights and easy-to-use dashboards mean that your business stands to benefit without you getting your hands dirty.

First, we’ll look at room pricing - the cornerstone of revenue management - and how new software can turn you into a pricing expert with a few clicks.

Using a pricing recommendation tool to automate dynamic room pricing

There’s no doubt you are on the lookout to boost your hotel’s revenue. Who isn’t? A surefire way to do that is to find the sweet spot with your room rates. A well-executed pricing strategy can be the difference between calmly hitting your targets and long nights examining your financial statements.

However, fine-tuning your rates manually so they’re always the correct price point to meet demand is incredibly difficult.

The task of manually collecting, compiling, analyzing, and setting real-time room prices is practically impossible before the data becomes outdated. This is precisely where technology steps in.

With a pricing recommendation tool, you can automate a dynamic pricing strategy at your property.

Dynamic pricing is revenue management’s gold standard when it comes to how to price your rooms. Room prices aren’t fixed, but are adjusted based on market demand, competition, time of booking, customer behavior, occupancy, and other factors that can influence booking patterns.

The prices change dynamically (hence the name) using real-time data to ensure you list the perfect price to maximize revenue and occupancy, no matter the season or day of week.

Using a tool such as Pricing Manager can lead to substantial improvements in business performance that mean you can catch up on your big chain rivals. Here’s how:

• Time-saving: Automated pricing recommendations spare you from manual research and analysis, freeing up valuable time to engage with your guests.

• Preventing revenue slippage: Automated room pricing strategies reduce the risk of manual inaccuracies and human errors, preventing potential revenue losses.

• Capturing revenue opportunities: Real-time price adjustments based on forecasts and competitor data allow you to capitalize on every revenue opportunity, regardless of demand fluctuations.

• Competitive edge: Quick and informed responses to demand and competitor pricing ensure you stay competitive, possibly attracting more bookings if you offer better value at similar prices.

• Occupancy maximization: Price optimization effectively manages occupancy levels, preventing overbooking during peak seasons and attracting more guests during off-peak times with strategic pricing.

Competitive pricing 24/7 means you’ll never miss out on revenue and while you can fully automate your pricing strategy you can also find your ideal balance between automation and hands-on guidance.

You have the choice to integrate your knowledge of your market and property with the software by setting customizable rules, alerts, and limits, ensuring you maintain control of your strategy.

Now it’s time to take your automated room pricing strategy to the next level by integrating your pricing recommendation tool with a channel manager.

Using a channel manager to automate your distribution strategy

Effectively managing your online distribution channels is another time-consuming process but one that’s vital to your hotel’s revenue generating efforts.

You want to increase direct bookings via your website to avoid commission, but also maintain maximum visibility across third party channels to attract bookings on Online Travel Agencies (OTAs) like Booking.com and Agoda. It takes a lot of thought and effort to get right.

A hotel channel manager streamlines the process of marketing, managing, and selling your hotel rooms across third-party platforms and your own website. No more manual work. Instead you get real-time pricing and inventory updates without lifting a finger.

Lighthouse’s Channel Manager centralizes and automates your distribution across multiple channels, effortlessly updating pricing, promotions, and syncing of availability in real-time.

You don’t miss out on any revenue opportunities and with connections to over 200 channels you maximize visibility to reach the audience most likely to book your property.

Best of all, when paired with Pricing Manager, price recommendations based on real-time market demand and competitor rate data are automatically sent to all of your connected channels. This ensures your room pricing is always fully optimized, no matter which website it’s on.

This synchronization prevents overbooking by maintaining accurate inventory counts, drives your business performance and fast-tracks your revenue management game, so you can challenge big industry players.

3. Personalize your guest experience

Consumers are increasingly expecting businesses to cater to their individual needs, a trend that is undeniably part of the hospitality industry. In this regard, independent hotels hold a distinctive edge over their larger counterparts. You can provide personalized and bespoke experiences for your guests, from the start of their booking journey to the front desk.

In contrast to cookie-cutter strategies often employed by larger hotel chains, you have the opportunity to be nimble in your approach and leverage data through technology to deliver services that truly resonate with each guest's unique preferences.

One way independent and boutique hotels can rise to this challenge is by integrating a PMS with Customer Relationship Management (CRM) software. This combination enables you to track and analyze details such as guest preferences, booking histories and requests.

With this wealth of data available, you can craft guest experiences tailored to the individual, from upgrades and room service, to the type of room they prefer and the way they like their morning coffee. Well, the last one may be a bit optimistic, but the level of personalization you are able to deliver can go a long way to increase guest satisfaction, foster loyalty and repeat business.

This marriage of data with a personal touch gives rise to a proactive service culture that can truly set you apart from large chains.

Establish a competitive advantage with data-driven insights

Data is now an invaluable commodity for independent hoteliers aiming to compete with larger chains.

By analyzing both internal and market data from the right sources, you can gain valuable insights into trends, guest preferences, operational performance and make more informed decisions on your pricing and distribution strategy.

Lighthouse provides the most comprehensive, complete and reliable data in the travel and hospitality industry.

Pricing Manager’s rate recommendations - your magic wand to revenue management standard room pricing - are based on over 2 billion new data points collected daily.

Together, Pricing Manager and Channel Manager is a powerful integrated technology solution for independent hoteliers - automating dynamic pricing across all of your online channels. It’s cost-effective, boosts your profitability and designed to save you time.

Safe in the knowledge your pricing and distribution strategies are automated to your requirements, your time is freed up to hone your competitive advantage over larger chains - providing a one-of-a-kind guest experience.