Best Western International
Revenue management is a technique used to maximize room revenue (and incremental revenues) – essentially balancing inventory, price and demand to get the most value out of a property’s occupancy. This requires tracking of daily, weekly and monthly sales by room type, by market segments and by channels. It also requires detailed analysis of that data. Automated revenue management systems (RMS) can make this process much easier, but can also be expensive and not all systems are created equal.
To save members the time and expense of finding the best system, Patti Halter, Best Western’s Revenue Management Director, Member Care, and her team spent many months evaluating RMS products. In January, Best Western finalized a Preferred Vendor agreement with EasyRMS, a leading provider of web-based revenue management solutions.
“We went through an extensive evaluation process before selecting EasyRMS and the EzRMS™ software product,” Halter said. “This process started more than a year ago, and we have since determined that their product is ideally suited to our needs. EasyRMS also demonstrated a strong commitment to client care and product development.”
Implementation is fully automated and handled entirely by EasyRMS staff. The product is web-based, so it’s installed over the Internet onto an existing computer at the property, where it then reads data from the hotel’s existing Property Management System (PMS). This interface with the PMS allows the product to generate dozens of statistical reports regarding occupancy trends.
The Best Western Sterling Inn Banquet and Conference Center in Sterling Heights, MI, officially went live with EzRMS™ in February 06. The system already has changed the way the property does business, according to Victor Martin, General Manager and co-owner.
“We do a lot of group business, so we use it to evaluate whether or not it makes sense to take certain groups,” said Martin. “It’s a great tool. We have a revenue management meeting weekly to discuss the recommendations the systems gives us and to decide how to structure out rates. Our sales people use it everyday.”
Training is offered onsite, and there is no limit to the number of employees who may attend. Because the product is easy to use, the customized three-day training session focuses primarily on how to make the best use of the system at each individual property.
“I was really impressed,” said Martin. “It was more than just training on how to run the software. It was like taking a college class, because they’re really teaching you the theories and fundamentals of revenue management. And the instructor was great!”
Independent studies by the American Hotel and Lodging Association, Cornell University and others have shown that, by utilizing a revenue management system, hotels can typically yield an immediate and permanent increase of four to seven percent in incremental gross revenues.
That return on investment – when coupled with the extensive data mining, forecasting and reporting capabilities built into the product – means EzRMS™ offers Best Western members incredible value and an unprecedented financial opportunity.
“The most amazing thing is that it actually works,” laughed Martin, who admits that at first the system seemed too good to be true to him. “You really get more than you bargained for. The cost is really reasonable considering what you get out of it. Its capabilities are just amazing and it’s so easy.”
“With regard to our revenue management planning, EzRMS™ has provided us with the tools to focus on specific months or even days that may be exceeding booking expectations or not meeting projections (whether short term or long term) with significant less time than previously achieved. By identifying what factors are creating these trends, we can decide if any changes need to be made. Group continuation: As trends change year to year, we have been able to identify dates that continue to show strong demand and allow higher rate strategies to be implemented on a more accurate level. On the other side, groups that may consider dates low in demand and/or off season, provide revenue that may have gone to other locations if not given the flexibility on rates” adds Juliet Nuyens, Reservations Manager at the Best Western Sterling Inn.
