The operating environment for hotels in the APAC region is becoming exponentially more complex. The distribution channels are consistently increasing, as are the number of data points to analyse in order to make the correct distribution and pricing decisions. Collating this information into a single vision of the truth is a time-consuming and laborious process which leaves little time to think strategically and make effective decisions that drive revenue and profitability in the long term. Your revenue manager is a valuable resource whose time is better spent deciphering data and responding to insights rather than sourcing and sorting data into countless excel reports.

A revenue solution that can make and implement tactical decisions and automatically distribute rates and inventory controls to your entire distribution environment will free up your revenue manager and allow them to focus on your hotel’s revenue strategy. However, revenue management is also a marathon, not a sprint. Hoteliers will see the greatest return from any investment in a revenue management system (RMS) over time. The longer a hotel has a system in place, working in conjunction with an effective team, the greater the return a hotel will experience.

In order for an RMS deployment to bring long-term revenue optimisation benefits to a property or hotel group, it first has to be adopted and utilised successfully within the organisation. Interestingly, corporate culture has a huge impact on how organisations approach digital transformation and how successfully projects are implemented. Some hotels might think digital transformation is focused on identifying workflows and operations that used to exist on paper and transitioning them to digital practices. And sometimes, they believe that transformation is limited to the act of doing something different. In fact, it's about bringing those things together and more. Digital transformation and utilising RMS technology is about making the role of a revenue manager easier, more accurate and more efficient so that a property or hotel group can better price itself in the market and maximise revenue opportunities.

Hoteliers need to allow a revenue management system to do the heavy lifting on day-to-day pricing analysis and setting. This frees up a revenue manager’s time for strategic thinking and planning.

Additionally, some hoteliers have shied away from automation or believe that transformation is limited to the revenue management team, but that’s not true. Adopting the automation of revenue optimization requires a clear vision from the top and alignment across the organisation on why and how to make it happen. Clear communication is needed to cascade down the importance of any technology change to all levels to achieve an effective adoption and a change in working and mindset.

Knowing that an organisation will have limited opportunities for long-term success with revenue management technology if the initial deployment phase does not go well, how can hoteliers maximise their chances of technology adoption success?

Identify risks and constraints

Should budgetary approval for a new RMS be granted within a hotel organisation, you should work to identify the factors that might lead to the under-utilisation of any system in the adoption phase. Some of the key risk factors to an RMS not being properly utilised or fully adopted within a hotel environment include:

• Lack of awareness: If you introduce an RMS and no one knows about it, what will you do to bolster awareness? Are there internal channels of communication you can use to promote the solution? Are there particular managers or stakeholders you need to recruit as advocates and training partners?
• Hesitation around adopting the tool: Lack of awareness is one thing, but if your colleagues know about the RMS and refuse to use it, that can lead to an even bigger challenge. Identify ways to remove friction to make the adoption process more accessible and less vague. Increasing transparency around the solution to show it will not replace anyone’s job, addressing pain points one-on-one, or bringing in the developer for support can help.
• Lack of perceived value: If stakeholders who would use an RMS don’t see its value, adoption could get tricky. Find or create resources you can use to show the value of your RMS.
• Training constraints: Purchasing an RMS is one thing, training people on how to use it is another. Identify what the training process will look like and outline ways to make the process as easy as possible. Lack of time, availability of trainers, and an organisation's size can bog down the onboarding process. As with the other obstacles, create a plan for how you’ll address these sticking points should someone ask about them during your internal pitch.

Ease of use will strengthen the chances of adoption

Hoteliers often have time and capacity restraints to implement complicated new systems and processes despite the promise of increased efficiency or revenue. In practice, operators will comply as best they can without falling behind the daily requirements of the business. This inevitably lengthens the amount of time a rollout may take, while potentially building a negative perception of the new tool among existing users and hotel staff.

With the staffing constraints that many hotels face today, it is in hoteliers’ best interests to rely on the skills and expertise of their technology partners to enable a rollout to the best of their ability. While hoteliers are benefitting from the adoption of new tools, it is not necessary for them to take part in the installation or set up of any new tech. Hotels need to ensure they trust their technology partner to manage a rollout without disrupting ongoing business. If hoteliers can trust that any new system will work easily without taking attention away from a staff member’s current tasks, then these tools will be more likely adopted.

Operators who have confidence in their tools are likely to use them. The best way to foster trust between hoteliers and new innovations is to keep things simple. If hoteliers are informed on how a system works and what they can expect in advance, they can be prepared to deal with any process disruptions that come with new technology rollouts.

Solutions could be as basic as a usage guide for revenue managers around how to adjust their strategy on a busy day, to prioritising daily time in an RMS, to simply explaining the “why” a value is important. Always ensure the technology, supporting processes and training serve each of the people within a hotel that will have exposure to the RMS and that those objectives have been made clear to them as well.

Collaborate for success 

There are many stakeholders and challenges involved when changing systems and processes within a hotel. Getting an outside expert’s help to guide the process will support the transition to new systems and ways of working. Hotel owners, managers and technology partners should always remember that that what is being implemented will ultimately improve the business, therefore they should seek to engage with one another collaboratively. This will help ensure that any revenue management technology deployment is as seamless, efficient and effective as possible for the long-term benefit of the organisation.

For more information on how your hotel can maximise the chances of revenue management technology adoption success, please visit: www.ideas.com

Written by: Tracy Dong, Principal Industry Consultant, IDeaS

The views expressed in this article are an opinion only and readers should rely on their independent advice in relation to such matters.