Latest news with #revenueoptimization
Hospitality Net
11-06-2025
- Business
- Hospitality Net
Hotel Demand Management: Forecasting & Market Intelligence Explained
In a rapidly shifting travel landscape, hotels cannot afford to rely on gut instinct when assessing demand for their product. To remain competitive, knowledgeable, and prepared, today's top operators employ hotel demand management, which unites the methods of demand forecasting and market intelligence. This article explores hotel demand forecasting, why it matters, and how hoteliers can use internal data and external intelligence to improve pricing, resourcing, and strategic decision-making. What is Hotel Demand Forecasting? Demand forecasting is one of the primary responsibilities of hospitality management. Hotel demand forecasting is the process of collecting and analyzing historical and current data to estimate future demand for rooms, F&B outlets, and events. Key data inputs for hotel demand forecasting include: Past occupancy patterns Booking pace and pickup curves Seasonality Cancellations and no-show rates Events and holidays Market trends from source markets The goal of demand forecasting is to optimize occupancy and maximize revenue, allowing hoteliers to react to and make the most out of market changes. Why is Hotel Demand Forecasting Important? Demand forecasting plays a critical role in revenue management by providing data-driven insights into future customer demand. Accurate forecasts enable hoteliers to set optimal room rates, manage availability, and make informed decisions on promotions and distribution strategies. This leads to maximized revenue, improved operational efficiency, and enhanced guest experience through better resource planning. Dr Cindy Heo, Associate Professor of revenue management at the EHL (read More from Dr Cindy Heo) Demand forecasting serves as the basis for effective revenue management, which uses analytics and performance data to maximize a hotel's revenue. Without demand forecasting, there is no accuracy in predicting future booking volumes. Accurate forecasting helps hotels match supply with demand by optimizing room pricing and distribution. Additionally, rather than living in a state of putting out fires, hoteliers may safeguard their income and make proactive adjustments by forecasting peak and low seasons. How to Accurately Forecast Hotel Demand Understanding both external market information and internal performance data is necessary for accurate and efficient hotel demand forecasting. Combining what's happening within the property with what's happening across the market allows for a holistic assessment of what affects a hotel's demand. Use Market Segmentation When assessing demand, hoteliers must understand its different sources. Dividing the market into segments (e.g., corporate, leisure, group, OTA bookings) helps refine forecasts. Each segment has unique booking patterns, lead times, and price sensitivity, which hoteliers can leverage to gain the most out of each segment. For example, if your internal booking data shows that corporate travelers consistently dominate weekday stays, while weekend stays are predominantly leisure guests, you can use this pattern to adjust pricing and promotions accordingly. Offering weekday packages with business-friendly amenities or flexible cancellation terms could increase conversion for that segment. At the same time, weekend deals might emphasize spa access or late check-out to appeal to leisure travelers. Monitor Occupancy Trends Room reservations usually follow similar patterns to the past. Analyzing current and historical occupancy trends is essential to identifying high and low demand periods. Ask questions like: When does your hotel hit peak occupancy? Are there demand spikes linked to local festivals, holidays, or school breaks? Does demand dip during certain weekdays or off-seasons? Gathering these insights will help you plan rate adjustments, allocate resources, and prepare for potential shortfalls. For instance, if your historical data shows that your hotel sells out during a summer festival, you can raise rates and optimize staff scheduling well in advance. A simple occupancy forecasting model for a given day takes the occupancy rate for the previous year's exact date. However, more advanced models incorporate competitor data, market volatility, and event calendars, giving a more reliable view of future demand. Pickup, or the quantity of new reservations made for a given day over a predetermined time frame, is a crucial indicator to monitor. For instance, if you had 30 reservations for a Saturday two weeks ago and now have 45, the 15 more reservations signify the pickup for that time frame. Revenue managers can make proactive price adjustments before the changes are reflected in final, realized occupancy numbers by monitoring pickup trends to spot short-term changes in demand. Incorporate Hotel Pricing Strategy Setting more intelligent, responsive prices is one of the most beneficial results of precise hotel demand forecasts. Hotels can implement pricing, length-of-stay (LOS) restrictions, and minimum and maximum rate thresholds based on anticipated demand patterns thanks to forecasts, which serve as the basis for essential revenue decisions. Using Hotel Market Intelligence Hospitality businesses do not exist in a vacuum but are instead influenced by many external factors. While internal data is essential, market intelligence complements effective hotel demand management. What is Market Intelligence for Hotels? Market intelligence is the process of collecting, analyzing, and applying external data to understand market dynamics and the competitive landscape. For hotels, this means keeping a close eye on competitor pricing, local events, economic sentiment, and regional booking trends. Including external factors builds a more accurate picture of future demand. Forecasts are only as reliable as the inputs. Hoteliers can avoid blind spots and develop plans grounded in reality rather than guesswork by considering external variables. Why Market Intelligence is Important: Macro-Sensitivity of the Hospitality Industry The hospitality industry is widely considered one of the most macro-sensitive sectors, deeply influenced by economic cycles. During periods of growth, people and businesses spend more on traveling, dining, and events. In contrast, recessions often lead to reduced bookings and lower average daily rates (ADRs). Understanding if the economy is in a period of growth can help hoteliers predict a future rise in demand, and vice versa. Pro Tip: Chain hotel operators can analyze how the same brand performs across different markets as a signal of broader consumer sentiment Other macro-level indicators include: New infrastructure projects (airports, convention centers, public transport) Increased flight capacity into local airports New corporate offices or headquarters (suggesting future corporate travel demand) Market maturity – is it an emerging market or one at saturation? By incorporating macroeconomic signals into their forecasting models, hoteliers can better prepare for shifts in demand and position themselves ahead of the curve. Benefits of Market Intelligence The macro-level insights market intelligence provides fill in what your internal data may miss, when traveler behavior and preferences shift. The result? Less reactive and more proactive decision-making. The ability to read the market helps to stay ahead of competition by, for instance, identifying early signs of demand spikes from source markets. Furthermore, awareness of competitors enables you to recognize your hotel's unique competitive advantages. Maybe your competitors get complaining reviews about slow check-in and outdated rooms, while your hotel gets praise for service and modern design. Even if you haven't focused on these points earlier, the feedback shows what makes your hotel stand out, perhaps serving as a standpoint to charge higher rates. Best Practices of Hotel Demand Forecasting Effective forecasting starts with the correct data and the right mindset. Use a combination of internal KPIs (like occupancy, ADR, and RevPAR) alongside external signals such as competitor activity and local market trends. Furthermore, forecasts are not a one-and-done; they should be updated regularly to reflect new patterns and shifts in traveler behavior. Applying statistical models such as exponential smoothing and time-series analysis can help identify trends and evaluate the accuracy of your predictions. The most reliable forecasts are data-driven and flexible, evolving with the market. Common Challenges in Hotel Demand Forecasting One of the biggest challenges in demand forecasting is dealing with uncertainty and rapidly changing market conditions. Factors such as unexpected events, shifts in consumer behavior, and competitor actions can significantly affect demand patterns. Hoteliers must therefore remain flexible, continuously update forecasts with real-time data, and integrate qualitative insights to maintain forecasting accuracy. Dr. Cindy Heo Limited or Inaccurate Data Accurate hotel demand forecasting depends on having access to high-quality internal and external data. However, many smaller or independent hotels may struggle with gathering inputs due to a lack of structured data systems. When internal data is missing or unreliable, benchmarking tools and OTA analytics can be a good starting point for forecasting. Still, each can have limitations, such as high cost or incomplete participation. Luckily, with some creativity, it is possible to see and follow market indicators from readily available sources, such as customer reviews, local news, and travel and tourism agencies. Other data sources include: Economic and political risk: Embassy websites, government advisories, and international relations updates that may affect traveler sentiment or safety perceptions Embassy websites, government advisories, and international relations updates that may affect traveler sentiment or safety perceptions Corporate travel demand: Occupancy rates in nearby office buildings, commercial rental prices (per sqm), and the tenant mix within business districts Occupancy rates in nearby office buildings, commercial rental prices (per sqm), and the tenant mix within business districts Leisure travel indicators: Arrival statistics from tourism boards, flight volumes, passenger traffic, and airline route data to measure inbound demand Arrival statistics from tourism boards, flight volumes, passenger traffic, and airline route data to measure inbound demand Infrastructure development: Local news, municipal government portals, and urban planning documents that signal upcoming demand drivers (e.g., new airports, convention centers, transit lines) Local news, municipal government portals, and urban planning documents that signal upcoming demand drivers (e.g., new airports, convention centers, transit lines) Future hotel supply: pipeline and crane reports, industry publications, and market contacts offering visibility into new hotel projects and competitive saturation Overreliance on Historical Trends While demand patterns often follow past patterns, the demand environment may quickly change, making relying solely on past data risky. Unpredictable disruptions from pandemics to geopolitical events can derail even the most accurate forecasts. For instance, the COVID-19 pandemic affected every aspect of hotel guests' booking patterns, from booking window to length of stay. Demand forecasting models that do not account for possible changes in these factors cannot estimate demand reliably. However, as shown by Heo et al., forecasts based on historical data are still relevant in times of uncertainty and turbulence – they simply need to be appropriately analyzed. The research suggests using a weighted moving average pickup method instead. This method takes current bookings and adds a smart average of how bookings increased in the past for similar dates. It examines multiple years rather than just one and smoothes out anomalous data, such as COVID spikes or declines. It helps with longer-term forecasting and in situations where demand is more unpredictable. Additionally, it's easy to set up in Excel, making it perfect for small and mid-sized hotels without access to complex forecasting software. In addition to refining forecasting models, tools such as scenario planning can help hoteliers prepare for the unexpected and mitigate disruptions. Future projections will always remain a guessing game, but with a proper approach, hoteliers can make these guesses educated. FAQ: Hotel Demand Management & Market Intelligence What is the difference between demand forecasting and market intelligence? Forecasting aims to predict your hotel's future demand based on data. Market intelligence is the broader process of analyzing external phenomena such as trends and competitors to complement internal information. Can small hotels forecast demand effectively? Yes. Small hotels can build basic forecasts using occupancy history, seasonality, and local event calendars, even with limited data. OTA analytics and public data sources can help fill gaps cost-effectively. How often should forecasts be updated? Hoteliers should refresh forecasts weekly for short-term operational decisions and monthly or quarterly for long-term planning. Is demand management only for hoteliers? No. Demand forecasting is also essential when planning potential hotel developments to understand the possible revenue streams and target customers. The proposed methods can be useful for a plethora of service businesses. EHL Hospitality Business School Communications Department +41 21 785 1354 EHL View source
Hospitality Net
10-06-2025
- Business
- Hospitality Net
Ryan MacLagan has been appointed Vice President of Business Development at LodgIQ™
With over 16 years of experience in the hospitality and revenue management industry, including leadership roles at IDeaS Revenue Solutions, MacLagan brings deep expertise in revenue strategy, client engagement, and commercial innovation to LodgIQ's executive team. MacLagan's track record includes global sales leadership, product development, and account management across dynamic sectors. At LodgIQ, he will focus on cultivating strategic partnerships, expanding the company's footprint in key markets, and aligning commercial strategies with LodgIQ's vision of modernizing revenue intelligence for hotels. His extensive background in both traditional hospitality and the parking vertical positions him to identify new opportunities for growth and collaboration. "Joining LodgIQ is an exciting opportunity to help redefine how the industry approaches revenue optimization and look towards the broader scope of commercial strategy," said Ryan MacLagan. "I'm looking forward to working with hoteliers to bring modern and AI-based revenue management solutions that grow revenue and free up time." MacLagan's appointment signals LodgIQ's emphasis on executive leadership that understands both the operational realities and the technology challenges facing revenue teams today. At IDeaS, he played a critical role in scaling revenue solutions for global clients. This perspective will now support LodgIQ's mission to provide predictive, data-driven tools for modern hoteliers. "Ryan's depth of industry knowledge and his deep understanding of the revenue management industry and how to help hotels generate more revenue makes him a valuable asset to LodgIQ and our industry," said Vincent Ramelli, CEO of LodgIQ. "His leadership will be instrumental in accelerating our commercial growth and strengthening client relationships." With this leadership addition, LodgIQ continues to strengthen its executive team as part of its broader strategy to enhance its revenue optimization platform. The company remains focused on developing flexible, intelligent solutions that empower hoteliers to maximize performance across all revenue streams.
Hospitality Net
29-05-2025
- Business
- Hospitality Net
TakeUp and Cloudbeds Team Up to Make Revenue Optimization Effortless for Independent Hospitality Properties
TakeUp, the AI-powered revenue management platform built for independent hospitality properties, announced today a new integration partnership with Cloudbeds, the innovative leader in hospitality management technology. This collaboration equips boutique hotels, inns, bed & breakfasts, and glamping retreats with seamless, automated revenue optimization—helping them maximize earnings while saving time. With this integration, independent hoteliers using Cloudbeds can now access TakeUp's AI-driven pricing engine, which dynamically adjusts room rates based on real-time market demand, competitor pricing, and booking trends. Alongside AI-powered automation, TakeUp's experienced revenue strategists act as an extension of each property's team, providing expert guidance to fine-tune pricing strategies and maximize long-term profitability. Cloudbeds' partner integration marketplace connects hoteliers with industry-leading solutions that enhance property management, revenue strategy, and guest experience. By integrating with Cloudbeds, TakeUp becomes part of a growing ecosystem of innovative tools designed to help independent hoteliers compete more effectively. This seamless connection ensures that TakeUp users can access advanced revenue management capabilities without disrupting their existing workflows. 'Cloudbeds has built an outstanding platform that streamlines hotel operations, and we're excited to enhance that experience by making revenue optimization effortless for their customers,' said Bobby Marhamat, CEO at TakeUp. 'By partnering with Cloudbeds, we're delivering AI-powered pricing automation and expert-backed strategies in a way that's simple, effective, and tailored to small and independent properties.' Key Benefits of the TakeUp + Cloudbeds Integration: AI-Driven Pricing Optimization – Automatically adjusts rates to reflect demand, competition, and market trends. Revenue Strategist Support – AI-powered insights, enhanced by expert guidance, ensure a strategic approach to pricing. Seamless Cloudbeds Integration – Quick and easy setup with no disruption to existing operations. User-Friendly Analytics – TakeUp's intuitive dashboard provides performance tracking and benchmarking. 'At Cloudbeds, our goal is to give hoteliers the tools they need to run their businesses more efficiently and profitably,' said Sebastien Leitner, VP of Partnerships at Cloudbeds. 'Partnering with TakeUp gives our customers access to a smart, easy-to-use revenue management solution that helps them stay ahead without adding unnecessary complexity to their workflows.' A Future of Smarter Revenue for Independent Hoteliers Independent hotels no longer have to guess at pricing strategies or spend hours manually adjusting rates. With TakeUp and Cloudbeds integrated together, properties of all sizes can now leverage AI-powered revenue management—a capability that was once only accessible to large hotel brands. About TakeUp TakeUp is an AI-powered revenue optimization platform built for independent hospitality properties, including boutique hotels, inns, bed & breakfasts, and glamping retreats. By leveraging AI-driven insights and expert revenue strategists, TakeUp helps properties maximize revenue and save time, seamlessly integrating with leading property management systems to drive profitability and operational efficiency. For more information visit About Cloudbeds Cloudbeds is the leading platform redefining the concept of PMS for the hospitality industry, serving tens of thousands of properties in more than 150 countries worldwide. Built from the ground up to be masterfully unified and scalable, the award-winning Cloudbeds Platform brings together built-in and integrated solutions that modernize hotel operations, distribution, guest experience, and data & analytics. Founded in 2012, Cloudbeds has been named a top PMS, Hotel Management System and Channel Manager (2021-2025) by Hotel Tech Report, World's Best Hotel PMS Solutions Provider (2022) by World Travel Awards, and recognized in Deloitte's Technology Fast 500 in 2024. Kelly Campbell Marketing Director View source
Travel Daily News
23-05-2025
- Business
- Travel Daily News
IDeaS achieves 426% growth in Greece through strategic hotel partnerships
IDeaS reports 426% growth in Greece, driven by strong hotel demand for revenue optimization tools amid rising tourism performance. ATHENS – IDeaS, a SAS company and the world's leading provider of hospitality revenue management software and services, reports record-breaking growth in Greece. This rapid expansion is driven by a wave of strategic hotel partnerships and increasing demand for sophisticated solutions tailored to optimize revenues for properties of all sizes and operating models. Between 2023 and 2024, IDeaS reported a 426% increase in year-on-year revenue, reflecting the company's growing influence in southern Europe's vibrant hospitality sector. Over this period, the business closed 27 new deals in Greece. IDeaS' growth aligns with Greece's tourism sector, which reached new heights in 2024, welcoming approximately 35.9 million international visitors and generating 21.7 billion euros in tourism revenue, surpassing previous records. The Athens market alone saw strong growth with average hotel occupancy reaching 78%, an 8.9% increase in the average daily rate (ADR) to 149.26 euros, and an 11.4% rise in revenue per available room (RevPAR) to 116.48 euros. Michael McCartan, Area Vice President, EMEA, IDeaS, said: 'Our performance in Greece has been nothing short of extraordinary. The appetite for dynamic, technology driven revenue management strategies is growing fast, and our clients are seeing the results. We're proud to support this transformation with solutions that empower hoteliers to adapt quickly, boost profitability, and elevate guest experiences.' IDeaS' growth in 2024 was anchored by a series of significant client acquisitions across the hospitality spectrum. These wins demonstrate the company's ability to deliver tailored revenue management solutions to a wide variety of property types, from boutique and lifestyle accommodations to expansive resort groups and multi-property portfolios. This momentum has continued into 2025, with further additions strengthening IDeaS' presence across both established and emerging markets. As Greek hoteliers face rising operating costs, tighter lending conditions and a rapidly evolving digital distribution landscape, investment in revenue management technology is increasingly seen as strategic necessity. By leveraging advanced demand forecasting to guide dynamic pricing, inventory, and distribution decisions – down to the room-type and market-segment level – operators gain the agility to respond to shifting market dynamics and drive more sustainable, long-term growth.
Hospitality Net
13-05-2025
- Business
- Hospitality Net
Duetto and Event Temple Unveil Groundbreaking Integration for Seamless Event Revenue Management
San Francisco, CA — Duetto and Event Temple are excited to announce a first-of-its-kind partnership combining the power of Duetto's cutting-edge OpenSpace solution and Event Temple's award-winning venue management software. Specifically designed to eliminate manual processes, prevent errors, and unlock new revenue opportunities, the integration between OpenSpace and Event Temple enables hotels and venues with fully synchronized, automated, and real-time booking workflows. We're thrilled to partner with Event Temple to deliver a solution that not only enhances operational efficiency, but also drives data-driven event revenue optimization. This integration aligns event sales, revenue, and general management teams, enabling them to focus on strategic growth rather than manual processes or troubleshooting discrepancies. Strategically, the groundbreaking partnership allows hoteliers to tie event space pricing to the property's revenue strategy, providing a cohesive approach to on-property revenue management. John Lingos-Webb, VP, Global Partnerships & Alliances, at Duetto The powerful integration features a fully synchronized, two-way connection that continuously updates both systems. Providing a single source of truth eliminates potential double bookings and inaccuracies, allowing teams to make informed pricing decisions while reducing errors. The combination of Duetto OpenSpace and Event Temple is a smart addition. It not only allows us to represent dynamic pricing, but also boosts efficiency and team satisfaction. For any hotel considering it, the integration is seamless and simply makes sense. customer Christian Rex, General Manager, Paulinenhof Leveraging real-time data, hotels and venues can optimize event revenue, forecast demand, reduce last-minute discounting, and streamline their sales and revenue management processes for more efficient and profitable bookings. We understand that hoteliers and hospitality professionals have to juggle many priorities. We want to offer straightforward solutions that work to make their jobs easier. That's why we're delighted to announce this partnership and integration with Duetto OpenSpace — it truly delivers on that promise. Bob Graham, CEO of Event Temple This integration represents a significant step in how hotels and venues manage event sales and revenue, ensuring they reach their full potential profitability. Visit our website to learn more about the partnership, and join our virtual event on June 3, 2025. About Duetto Duetto is the leading revenue strategy platform for the hospitality industry, unlocking revenue for rooms and event spaces in more than 6,800 hotels, casinos, and resorts globally. The creators of Open Pricing, Duetto's RMS leverages real-time data, predictive analytics, and automation tools to optimize pricing and revenue strategies, driving increased profitability and operational efficiency. With comprehensive reporting and forecasting capabilities, Duetto empowers hospitality professionals with the insights needed to navigate the complexities of the modern travel landscape. Named the world's #1 revenue management system in the HotelTechAwards four years running, from 2022 to 2025, Duetto is on a mission to become the revenue and profit operating system for the hotel industry. For more information, please visit Julia Pedrol Content & PR Manager
