In the world of revenue management, every second counts. Traditionally, a revenue manager’s job has required endless button-pushing, manual tasks, and system updates that steal valuable time away from strategic decision making.
But how do you change the status quo?
We believe that real change requires both a paradigm shift and a technological one. Organizational buy-in and strategic shifts are made possible by the right tools – and for revenue managers, having the right Revenue Management System (RMS) is key. That’s why N2Pricing™ RMS was intentionally designed with features that increase efficiency for above-property revenue managers, with a focus on automated rate pushes, inventory optimization, and ease of use.
Read on to discover how N2 is different than the legacy tech you’re used to, and how it can boost productivity while enabling revenue managers to be more strategic.
Manual pricing updates should be the exception, not the rule
In HSMAI’s Voice of Revenue Managers Benchmarking study, we were struck but how much time revenue managers dedicate to extremely manual, repetitive tasks. And the main culprit? You guessed it – pricing updates. We made it our mission to create a solution that freed revenue managers from endless cycles of button pushing, unlocking their time and enabling them to pursue more strategic efforts. We found that if we could reduce these manual tasks by even half, we could give revenue managers 50 hours back every month.
Legacy RMSs have an “all-or-nothing” approach to automated rate pushes. Systems that insist on automating every pricing update make users very nervous, and they often end up overriding everything anyway – landing them back in the same spot they’d be in if they used a system with no automation.
N2 addresses this issue in two ways: 1) configurable automation controls and 2) Dynamic Differentials.
Configurable automation
Unlike traditional opt-in systems that require manual approval for every action, or fully automated systems that can leave revenue managers feeling out of the loop, we offer a solution that strikes a balance. With N2, users set automation thresholds that allow the system to automatically push changes that are within a certain +/- percent or dollar value change. Users are only alerted if price recommendations fall outside of that threshold, allowing them to manage those more extreme changes following an exceptions management workflow. Many N2 users start at lower threshold – say, +/- 5% - and increase it over time as their trust in the system grows.
Long story short: By efficiently handling routine tasks and instilling confidence, N2 enables revenue managers to manage by exception, saving them time while maintaining their agency.
Dynamic Differentials
The second way N2 increases efficiency is with Dynamic Differentials. Dynamic Differentials enables the user to define their rate strategy, which is then automatically executed by the system. The best practice is to make sure this strategy is rooted in analytics, looking at forecasted occupancy to ensure the rates align with market demand.
For example: the revenue manager tells N2 that when forecasted occupancy reaches 90%, AAA’s discount should be reduced to 10% off of the Best Available Rate (BAR). When the forecast changes and triggers that new rate strategy, N2 automatically deploys the predetermined discounts, freeing up the user from having to enter those pricing updates manually. The combination of a user-defined strategy, sophisticated analytics, and automatic execution prevents the back-and-forth adjustment dilemma seen in other systems.
Inventory Optimization
After automation, the second major way that N2Pricing increases efficiency is with Inventory Optimization. Piecing together the perfect combination of demand to optimize profit – between rate plan, room type, arrival date, and length of stay – is extremely complex. N2 solves the Tetris puzzle for you in the background, determining the perfect inventory combination faster and more effectively than one person ever could.
We’ve found that there are two key things for making N2’s Inventory Optimization work successfully:
- Ensuring that the data inputs are clean. (Garbage in, garbage out, as they say.) If you find that you are disagreeing with the results of the optimization, then it means you disagree with one of your inputs. The N2 workflow encourages users to interact with the demand forecast to influence the optimization. You shouldn’t have to touch the inventory outputs if the inputs are correct.
- Delivering the information in an intuitive way. N2 is doing a lot of data gymnastics for you in the background, but the user doesn’t need to be overwhelmed with that information. The result of the optimization, and the output the user sees, is a Hurdle Rate (also known as a Last Room Value or Bid Price) or “Plain English” inventory control (e.g., Min LOS 3). We’ll also do the work of translating the output into whatever format your other systems need to be able to read the data.
By handling Inventory Optimization automatically in the background and delivering intuitive outputs, N2 drastically increases efficiency while optimizing profit. And that’s what we call a win-win.
Ease of use
We understand that adopting a new system can be daunting, and user adoption is a concern. Because let’s face it – your tech isn’t increasing efficiency if no one can figure out how to use it. That’s why N2Pricing is built on a foundation of sophisticated analytics and powerful processes, but it’s packaged in an extremely user-friendly interface.
N2 was designed with ease of use in mind throughout, but we want to highlight a few of our favorite efficiency-driving features: 1) the self-guided training capabilities and 2) our Special Events Auto-Detection solution.
Up and running in no time
Legacy RMSs are notoriously complex. They require hours and hours of a revenue manager’s time, taking them away from their day job so they can attend weeks-long training sessions. Not only is that stealing their valuable time, but it also makes employee turnover a nightmare; you must repeat this lengthy process every time you bring on someone new.
N2Pricing has a refreshing approach to training. Think of it as navigating with the app Waze: it’s intuitive, guided, and efficient, and no one had to teach you how to use it, right? The N2 team does, of course, offer training during the implementation process, but we empower users to be able to self-serve at any time (especially for those users who weren’t around when the original implementation took place). That’s why N2 comes with in-app tours and training, and a prolific, searchable knowledgebase of articles that can answer almost any question a user may have. These features ensure that revenue managers can swiftly become proficient without undergoing lengthy training sessions.
N2’s user-friendly interface and self-guided training capabilities ensure that new users are up and running in no time, and experienced users can quickly answer questions and get back to the important work at hand without wasting time.
Special event auto-detection
Managing special events is often a complex and time-consuming task. Legacy RMSs require users to map past events to future occurrences, a process prone to errors and knowledge loss. N2 breaks the mold by introducing Special Event Auto Detection —a game-changing feature that eliminates the need for manual event mapping. N2 autonomously detects anomalies, flagging high-demand days as special events. This detection then feeds into the forecasting model, allowing revenue managers to adjust prices accordingly.
Now, we know what question you’re going to ask: “But what about Taylor Swift?!” We understand that no RMS can perfectly capture the local market knowledge and unique insights that a revenue manager has. But that’s okay! N2 is there to liberate your time, increasing efficiency and freeing you from manual tasks so that you have the time to manage those exceptions (like a once-in-a-lifetime concert). The system is there to enhance a revenue manager’s abilities – not replace them.
N2Pricing RMS—Your path to more efficient revenue management
N2 is uniquely suited to increase your team’s overall efficiency. Through automated rate pushes, inventory optimization, intuitive usability, and the ability to effortlessly manage special events, our system empowers revenue managers to take their time back. The hours saved (up to 50 hours a month!) from managing manual updates and processes can be channeled into more important things, like commercial strategy.
By striking a balance between automation and user control, leveraging the power of sophisticated analytics, and simplifying system interaction, we've created a solution that resonates with revenue management teams. To discover the full potential of N2Pricing RMS, we invite you to connect with our team of experts who are dedicated to unlocking your revenue management success.
Ready to learn more about how N2Pricing solves the unique problems that modern revenue managers face? Check out our blog on N2’s approach to above-property management.
