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iRates Revolution in automated hotel revenue management


Article: Automation in Hospitality Revenue Management | by Ira Vouk and Serge Terekhov May 1st, 2015

The slogan of the successful Revenue Management is to sell the right product to the right customer at the right time and for the right price. It sounds relatively simple but is not easy to accomplish. How do we know when the right time comes, what the right price is and what types of customers we should target?

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Article: Things you didn’t know about RevPAR | by Ira Vouk September 15th, 2014

RevPAR is not the most perfect index for measuring a hotel’s actual productivity (or, the Revenue Management and pricing strategy, to be exact), regardless of the widely spread opinion in the hotel industry. This statistic does not objectively reflect the performance (and profitability) of your hotel.

It is better to avoid using RevPAR when measuring the performance of your property. The best way to make sure that you’re aiming at the maximum potential profit is to adjust your strategy in terms of the new, more accurate, performance indicator: Adjusted RevPAR, a clear reflection of the bottom line. And if you are not sure how to make it work – invest in a Revenue Management system, it will pay off quickly.

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Article: 5 reasons NOT to follow your competitors’ prices July 2nd, 2014

Another misconception that is still prevalent among hotels of all sizes and star ratings is that in order to be priced accurately, one needs to follow their competitors’ rates. Unfortunately, this point of view is also shared by large hotel management companies, hotel chains and even some Revenue Management companies.

The general logic behind this point of view is normally the following: the prices that your neighbors are charging for their hotel rooms comprise the supply and affect the market conditions. Overall, there’s nothing wrong with this statement. Definitely, for the correct understanding of the hotel’s position in the market, it’s important to be aware of the rates that your competitors are charging for any given day in the future. However, in many cases, following their prices blindly draws you away from the optimal market price (based on real supply and demand), and actually makes your hotel lose money.

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Article: 3 biggest myths about Occupancy | by Ira Vouk June 6th, 2014

Occupancy is one of the three main indexes used in the science of Revenue Management (along with ADR and RevPAR). It is the percentage of all rental units in the hotel that are occupied at a given time.

The three main misconceptions about occupancy that are still prevailing in the hotel industry are:

  • Occupancy should be the target for maximization
  • Occupancy should be forecasted
  • Occupancy should be the indicator and trigger for price adjustments...

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iRates usage training and best practices - video May 27th, 2014

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iRates Revenue Management webinar October 8th, 2013

Enjoy the free webinar on key indicators in Revenue Management from iRates

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Article: Revenue Management: Key Indicators for Success August 19th, 2013

Please read the article by our VP of Revenue Management Ira Vouk at the InnTouch forum:

Why does revenue need to be managed? Seems like a rhetorical question, but not all hotels realize the necessity and importance of managing revenues and paying enough attention to these tasks.

Today, the hospitality market presents a high level of uncertainty. The demand is constantly changing, the market is dynamic. Besides, customers are now equipped with a wide range of tools with which to navigate hotel inventory and find deals that don’t always contribute to the hotels’ revenue growth (i.e. numerous OTA and aggregator websites, allowing customers to compare room rates, discounted opaque websites, mobile apps, etc.).

In order to be able to respond to this challenge and not get lost in constantly-changing market conditions, every single hotel needs to realize the necessity of adequate daily Revenue Management.

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