Why Don’t Revenue Management Systems Do A Better Job of Supporting Hotel Marketing?

Why Don’t Revenue Management Systems Do A Better Job of Supporting Hotel Marketing?

There’s new life in the revenue management market. New players are coming on with unique approaches to the data they present for hotel decision making. Despite this progress, one shortcoming still remains. A big opportunity for Revenue Management Solutions (RMSs) is to provide marketing teams with information they can use to do a better job of capturing demand. Enhancing marketing information is a massive opportunity for RMS providers to yield properties at an even higher level.


Indeed, Revenue Management and Marketing need to do a better job of working together. One way they can do this is not only evaluating pace to forecast together, but also observing future demand trends. That includes a full range of forward-looking insights on the market and hotel level such as:

  • Demographic types of transient consumers showing the highest level of interest and booking activity
  • Top geographic sources of travel consumer activity
  • Booking lead times as they vary by source markets and demographics
  • Responsiveness of consumers to future rates by property and competitors


When it’s easy for Marketing to tweak the targeting criteria with this information in existing marketing programs such as Google PPC, OTA and TripAdvisor Display, Retargeting, Email Marketing, Facebook and Content Marketing, then the hotel truly can do a better job beating its competitors to available demand.


Offering data that hotels have never had access to before now, such as with nSight’s Demand Forecasting calendar, provides a dynamic view of leisure travel by incorporating rate, booking performance and consumer intent to travel into a single view that is useful to both revenue management and marketing.



nSight Demand Forecast Calendar: Forward-looking data shows days where marketing and RM should work together.


This multi-dimensional view of rate, conversion and market potential gives revenue managers and marketers a more complete outlook for better decision making. Knowing the volume of consumer searches for future arrival dates, hotels have powerful new insight for maximizing ADR, occupancy and overall profit in these typical scenarios:

  • Holding rate in the face of lower available consumer interest can be the smartest way to maximize gross profit for that day.
  • If rate is above the comp set but bookings are down, hotels may consider aggressive discounting and more marketing spend.  But watch for low demand so as not to sacrifice ADR for a small number of new bookings.
  • Multiple days in a row with low leisure search and, therefore, lower booking potential, offer a good opportunity to focus on groups, events and/or weddings to boost occupancy and grow incremental revenue.
  • Days with low rate and conversion in the face of strong demand call for nSight’s unique persona-based target marketing to attract and convert consumers who are “most likely to book” as that are already searching the market.


Making it easy for Marketing to tweak the targeting criteria with this information in digital market enables the hotel to beat competitors to active travel consumers.


By focusing on the travel consumer’s shopping behavior, revenue management and marketing come together with a common perspective and approach.  The result: higher ADR, increased direct bookings, and better marketing ROI.