Have you ever looked over your property to find that you’re completely sold out for a period in the future? No warning, no event, nothing similar in previous years. These periods are valuable sources of revenue and price growth - but you almost always catch them when it’s too late.
One of the best examples of CompSet blindness is Vienna in 2015. The Eurovision Song Contest was coming to town and hotels were expecting high demand. Bookings didn’t materialise but most revenue managers held on to their high prices. Following each other as opposed to the market lost many people a lot of money.
We live in times of constant change. City hotels can no longer afford to forecast the future from past performance. Whether it’s Brexit, travel-bans or ash-clouds we need to be very, very quick on our feet to respond. The question is how we can be more agile?
The hotel industry is standing at the edge of a cliff. Parts of the revenue management job will be taken over by computers and machine learning which can respond faster and more accurately to demand. Some hotels are already live. Will you be a leader or a follower? Read more here