Despite Brexit worries, the hospitality industry has continued to enjoy record trading figures and consistent growth for yet another year.
ONS data has highlighted that the sector has grown approximately 6% every year since 2013, with total turnover of all hospitality businesses reaching £98 billion in 2017, up from £92 billion in 2016 and £86 billion in 2015.
With the industry predicted to comfortably generate £100 billion in 2018, our dynamic pricing feature within Hotel Executive, our market leading hotel software, can help hotels to ensure their continuing to boost their revenue.
Hospitality industry growth
The hospitality industry makes a significant and important contribution to the British economy. Equally, the 202,000 businesses operating in the industry play a valuable role as employers and job creators, also vital for the industries continued success.
Analysis of the ONS data indicates that the number of people working in the sector has increased by over 409,000 in the past five years, which is testament to the health and strength of the industry. However, as we’re seeing across the entire economy, the way we’re working and employing is changing. Employees are coming to expect increasing flexibility and often, employers require it – businesses must be able to respond to that.
Maximising hotel revenue through dynamic pricing
Traditionally most products and services across the UK come with a fixed price tag, but with the huge increase of sales online a shift towards dynamic or ‘real-time’ pricing in the hotel industry has enabled many to reap the benefits.
Our dynamic pricing module allows hotel owners and managers to set-up sophisticated occupancy and revenue rules to vary prices automatically depending on levels of fluctuating demand.
Given the varying degrees of occupancy experienced throughout the course of just one week, this can be a hugely effective way of driving bookings during quieter periods and filling rooms at the most profitable price when demand is high. On a day of the week when your occupancy levels are low, room prices automatically fall to offer potential customers a discount, providing added incentive to book.
This flexible approach to pricing is becoming increasingly common as the move to online business allows hotels to more easily monitor consumer behavior.
It’s about selling room for a price that the customer is able and willing to pay, ultimately ensuring revenue and sales continue across the industry.