ARAMA and RMS exclusive: 3 pillars of profitability
In the current climate, profitability is at the forefront of everyone’s minds. Following the unpredictability of 2020, letting managers and accommodation operators must adapt to changes in guest behaviour and utilise the right tools to run their business as efficiently as possible.
To help shed light on the above, we teamed up with the Australian Resident Accommodation Managers Association (ARAMA) to discuss how resident managers can leverage their property management system to drive profitability. Here are some of our key findings:
1. Adapt easily to mitigate business risk
Adjusting your processes to satisfy travel and guest demand is a crucial step for many operators looking to maximise their profitability.
During COVID, we recognised that our MLR customers needed to manage short and long term stays side by side. At RMS, we call this fluid inventory which you can utilise at any time (pandemic or no pandemic). This flexible functionality allows you to combine your short and long term inventory in the same platform.
Benefits of having fluid inventory:
• No need to change your pricing mechanism
• Fast and flexible - available at the flick of a switch
• Unlock hidden revenue opportunities by increasing your tenant reach
• Generate lease agreements out of RMS
• No extra cost to RMS users
2. Maximise tools, people, and time
Before you can focus on profitability, you need to evaluate your outgoings to make sure you’re operating at the highest level of efficiency. Start by asking yourself the following:
• How much is your time worth?
• Are you getting the best return on your people investment?
• Are your tools working hard enough?
In the accommodation industry, investing in people is essential to driving a positive guest experience and selling your product.
However, if your technology is outdated, chances are your staff are spending more time on admin tasks than focusing on guest interaction. By updating your tech stack, you can immediately improve your operational efficiency. Once set up, your integrated property management system can take the pressure off your staff by:
• Triggering email and text communications to your guests, pre, during, and post-stay
• Automating internal reports that need to go to external parties, such as your accountant or bookkeeper
• Juggling bookings during busy periods thanks to a clean and flexible booking screen with a clear view of availability
• Managing rate fluctuations based on time of year, occupancy, and lead time of booking based on your business rules
3. Your marketing channels, your way
Most operators in the accommodation industry have a love-hate relationship with OTAs, which is why you need to be smart with how you engage with these channels. The key is to make the channels work for you and use them in tandem with your PMS. While OTAs can dramatically increase your property’s visibility, they also cost you commissions. Here are some ways to continue using OTAs while also saving money:
• Switch to RMS’ native direct channel manager, which is accessible within the PMS (no need to log into another platform or accept OTA bookings to update inventory) and saves you in third-party channel manager fees
• Optimise your pricing with RMS’ advanced rate technology, which gives you the flexibility and power to sell where you want at whatever price, without time-consuming rate plan management
• Implement an internet booking engine (IBE) on your website so that your guests can book directly; include an upsell stage, such as the purchase of picnic hampers or BBQ packs to generate more revenue
Turbocharge your resident manager operations by building a tech stack suited to your business needs. Book your free tech review with Courtney to get started.
Stay tuned for our upcoming webinar with ARAMA where we'll be discussing the three pillars in more detail.