Above-Property Revenue Management Requires a New Breed of RMS
Above-property management is here to stay. It became increasingly common before the pandemic and shifts in strategy coupled with limited staffing resources have since cemented its place in the hospitality industry. Single-property Directors of Revenue Management (DORMs) are becoming a rare breed as hotels adapt to a clustered property management approach.
One small problem: revenue management strategy may have changed, but legacy tech has largely remained the same. Many hoteliers are struggling to retrofit their existing Revenue Management System (RMS) to support this new above-property approach – which is exactly why we built N2Pricing™ RMS. N2Pricing was created during the pandemic, in the heart of the industry’s shift to above-property management. And rather than being adapted to work for above-property Revenue Managers (RMs) as an afterthought, it was built explicitly for them.
So, what does above-property revenue management actually look like in practice? We call N2Pricing “the first modern above-property RMS,” but what does that really mean? In this blog, we’ll dig into how N2Pricing is different than legacy RMSs that were built for single-property DORMs, and how the right technology is critical to executing an above-property revenue management strategy.
Visibility isn’t everything
First and foremost: an above-property RMS needs to do so much more than just provide visibility into total portfolio performance. Legacy RMSs that claim to support above-property management are often only referring to reporting dashboards that aggregate data across an RM’s portfolio.
While dashboards are important for quickly understanding performance and supporting conversations with stakeholders across the organization, dashboards like these don’t inform how revenue managers can most effectively use their time. Plus, you may have dashboard capabilities elsewhere in your BI stack, so your RMS should be doing more for you.
That being said, we do understand the value of reporting, and the necessity of being able to use data to communicate with stakeholders across the organization. N2Pricing allows RMs to slice and dice data, whether that’s at a total portfolio or single hotel level. These reports highlight key KPIs and tell clear stories without drowning you in data – no need to search for the needle in the haystack.
A new kind of workflow
What makes N2Pricing so unique is its workflow, and its dashboard is at the core of that. N2’s above-property dashboard provides a prioritized view of revenue opportunities across your portfolio – regardless of which property it’s for or where that opportunity falls chronologically. It points revenue managers to where they can have the biggest impact. N2’s dashboard is a tactical jumping-off point, telling revenue managers where to start and where to focus their energies. It highlights areas where making a change will result in the biggest revenue boost.
The best part? No more having to click between multiple tabs while you jump back and forth between properties. No more swivel-chairing between multiple monitors to make sense of what’s going on. It’s your entire portfolio, all on one screen, neatly packaged into an actionable list of to-dos.
Utilizing an RMS for above-property management shouldn’t just mean using a system to manually manage all your properties day-by-day, rate-by-rate. It shouldn’t be limited to pulling up reporting dashboards to get a bird’s-eye-view of how your portfolio is performing. It should mean utilizing the right technology to change the way RMs work, and strategically focusing their efforts to drive revenue.
Automation, on your terms
N2Pricing is a game-changer for above-property managers, and it delivers on ‘exception management’ thanks to another key part of the RMS puzzle: automation. Above-property managers simply cannot manually manage every rate change that their portfolio of properties require; there aren’t enough minutes in the day. That’s why N2 allows you to set smart automation controls that manage “normal” pricing changes automatically.
If a price change is within a certain threshold – based on +/- percentages that you control – N2 will process them automatically. This isn’t all-or-nothing-automation; it’s automation based on your comfort level. You can start with a narrow threshold (say, plus or minus 5%), and then increase the threshold over time as you grow comfortable with the system, reducing the number of price changes that require your attention on any given day.
We believe that there is massive value to be found in the partnership between humans and machines. That’s why we built N2 to automate some decisions while recognizing where an RM’s expertise would be beneficial. On the same dashboard, you’ll find N2’s exception management section. It flags things that need the RM’s attention, such as high revenue opportunity, significant price change recommendations, or large forecast changes. The RM can dig into the alerts and quickly interpret key data points (such as price sensitivity and the forecasted demand) to make a decision.
Utilizing automation doesn’t mean RMs are no longer needed; on the contrary, it frees RMs up to be able to analyze unique, nuanced situations that a machine will never quite understand.
Making the shift to a true above-property management strategy is easier said than done, and it involves more than plugging a new RMS into your tech stack. It’s a complete mindset shift. Seasoned RMs might wonder where their calendar view is or yearn for the 40 columns of data they’re accustomed to seeing in legacy RMSs. But N2Pricing recognizes that above-property RMs simply cannot operate that way anymore. They need the data synthesized into the TL;DR version, and they need a system that will show them where they can make the most impact.
This can be a tough pill to swallow, both for senior leadership who are nervous about making strategic changes or investing in new tech, and for the RMs who have to change the way they are accustomed to working day-to-day.
But that’s where we come in.
Don’t just take our word for it
Our opinion of N2Pricing may be slightly biased – but that’s why we let the results speak for themselves. Below are just 3 of the ways that investing in an above-property RMS like N2 can positively impact your business.
- Increased efficiency. Instead of reviewing every single rate at every single property, processes are streamlined and RMs are spending their energy where it counts. Revenue leaders can feel confident that their team is working efficiently and not getting burnt out on manual revenue management processes.
- Time back. RMs that use N2Pricing report getting upwards of 50 hours back a month. Having this time back enables RMs to work more strategically – like partnering with cross-functional teams, digging into research and analysis, and leaning into commercial strategy.
- Revenue uplift. By utilizing the dashboard and prioritizing actions that will have the highest impact, RMs can feel confident that they are making decisions that will boost revenue. How does a 3.5% increase in RevPAR sound?
Our job? Making YOUR job easier.
Your RMS should be making your life easier, not harder. But if you’re trying to retrofit legacy tech to the modern above-property world, you’re bound to encounter some roadblocks. That’s why we built N2Pricing for above-property management, first and foremost.
Let us talk you through it. With nearly 40 years of revenue management expertise, we are uniquely suited to answer your questions and to guide you through the shift to an above-property revenue management strategy.
If you’re ready to see N2Pricing in action and explore how it could improve your business, connect with an expert on our team today.
Sold on the idea of a new RMS, but concerned about the implementation process? We’ve got you covered there, too. Check out our blog, “5 RMS Implementation Myths - Busted!” to learn how easy implementation can be with the right partner.