Hotel Vikas is the next generation magazine for American Hospitality industry specifically created for senior Hotel CEOs and decision makers.

Extended-Stay Hotels Can Benefit From Revenue Management Insights

Extended-stay hotels, typically known for their resilience and consistent returns, are looking for a way to boost revenue for the first time in years. Competitive indicators show extended-stay properties stand to benefit from advanced revenue management support now more than ever.

The most significant misconception extended-stay operators have about adopting revenue management technology is that it will require changing their operating model. Extended-stay hotel fundamentals are no different from other hotel segments—with a few important caveats. While extended-stay hotels must overcome slightly more price resistance than the full-service and luxury segments, these properties ask the same questions and use the same data points to optimize revenue and improve their relationship with guests.

When extended-stay hotels operate with data-driven insights provided by revenue management technology, they are more competitive, efficient, and aware of their earning potential. However, investing in this technology is often seen as a significant commitment, even though it doesn’t have to be. Instead, operators should ask themselves whether or not they benefit from these capabilities and allow the investment to pay for itself.

Extended-stay operators, like all hotel operators, must keep profit in mind as their goal. Effective profit optimization only sometimes means achieving maximum occupancy or pushing the highest rates. Instead, hotels should seek insight from data analytics to help them leverage the available demand. This tactical task is best managed by automated systems and led by data scientists so operators can prioritize operational strategy and improve the guest experience. However, this technology is rapidly being made available across the entire hotel operations chain, allowing more eyes to help inform revenue management decision-making.