Adapting your business strategy to stay ahead of the game

 

The hospitality industry is continually shaped by factors such as travel trends, changes in guest behaviour and accessibility. The pandemic impacted the industry on a global scale, causing many operators to rethink their strategy in response to the unpredictable market shifts. 

Savvy operators are keeping their fingers on the pulse, preparing ahead of time should they ever be faced with similar future downturn.

 

What is fluid inventory & why do you need it?

Within RMS, you can effortlessly reconfigure your inventory from short-term to long-term should there be a sudden influx in demand. 

Coined as fluid inventory, it enables you to instantly adapt your offering and react to industry trends (including unpredictable pandemics).

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How your business benefits

Becoming a long-term accommodation provider on-demand helps you extend your reach by targeting a different market, such as:

→ Students

→ Remote workers

→ Residents (providing short-term letting/government housing, for example)

→ Relocators

This ability to pivot the business model is forward-thinking and gives you the flexibility to adapt on-demand.

Microstays: booking by the hour

Maximise your inventory by selling rooms on an hourly basis.

→ Gives guests the flexibility to choose a time period suited to their needs

→ Great for business travel/layovers as guests can set-up base without needing to spend the night

→ Prevents rooms from sitting empty and also enables multiple reservations within a 24-hour period, unlocking additional revenue streams

RMS is one of the only PMS vendors that can support microstays.

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"RMS' fluid inventory functionality makes it really easy for us to switch between short term and long term bookings, which is something we've been taking advantage of based on industry demand. In 2019, our long term bookings (over 30 days) made up 10% of our revenue; in 2020, we pivoted due to COVID and saw long-term bookings make up 37% of our revenue. On current projections, long-term is sitting at around 26% for 2021. Having the flexibility to switch between long and short term stays is essential for us to effectively react to what is happening in the market at any given time."

Mark McKay - Cilento Mooloolaba