History repeats. It’s been the mantra of hotel revenue management since it’s become sort of sexy, in a hot accountant kind of way, among hotel managers over the past decade or so.
But Patrick Andres reckons that while the past has relevance, the future is equally important in terms of modelling how far hoteliers can push rates and increase the bottom line without hurting occupancy.
Of course, Mr Andres would say that because looking forward is a significant point of difference for Duetto Research, a new revenue management company the hotel tech veteran joined last September as head of Asia Pacific.
Duetto has built a new cloud-based revenue management system over the past couple of years and is now taking on market incumbents such as Ideas, Rainmaker and EzRMS.
The hard sales work has just begun but Mr Andres has been pleased with the reception so far.
He also believes there is ample scope to grow because reality doesn’t often match the hype when it comes to revenue management, which has not been as widely embraced as many might think.
“Some hotels are still sticking a finger up in the air,” he jokes.
“Revenue management is still not seen as essential by many hotels.
“A lot of them don’t have a proper system.”
Mr Andres said “most rely on historical data, using the past to determine the future.
“We’re looking much more at forward indicators to predict what we need to do.”
These include web shopping ‘regrets and denials’, airline traffic, competitor pricing, ratings, social media and special events.
He also makes the point that: “The past is deceptive as the booking window shrinks and shrinks and shrinks.”
Andres says Duetto also looks beyond Best Available Rate, the traditional pricing benchmark.
“Everything is traditionally above or below Best Available Rate, so prices moved in unison.
“Now that’s out the door and there can be a much greater variation in rate.”
Before taking up his new role Mr Andres was VP and Regional Managing Director at Travelport, while previously held senior positions with Sabre Hospitality and Micros Fidelio.