Choice Hotels Asia-Pacific has introduced an automated revenue management tool for its franchisee network, giving hotel owners better insights on competitive pricing and showing promising gains in ADR and RevPAR for participating properties.
Already in play at 5000 hotels across the United States, the ChoiceMAX Revenue Management System was developed exclusively for Choice Hotels by IDeaS, the world’s leading revenue management software and services provider. The solution was awarded a Hospitality Technology Hotel Visionary Award for enterprise innovation in January 2022.
ChoiceMAX is mobile enabled, leveraging pricing algorithms to help hotels optimise their pricing structure, which may ultimately increase revenues.
The revenue management system includes a 365-day optimisation window, including intra-day optimisation with rates updated multiple times per day, real-time alerts that can be customised to stay up to date on price changes or when competitors adjust, automated delivery and implementation of pricing decisions, forecasting automation, and the ability to set price floors and ceilings and use continuous pricing to gain additional revenue from each room night.
Choice Hotels introduced professional revenue management services for franchisees in 2017. The service has delivered impressive boosts RevPAR for participating hotels throughout lockdowns and the 2022 recovery. Revenue managed hotels exceeded market RevPAR by 14% in Q1 and exceeded non-RM hotels within the Choice Hotels group by 33%.
Quality Hotel Regent Rockhampton was one of the first properties to use the ChoiceMAX, and despite some segmentation changes, the property has seen an ADR growth of $16 year on year.
Franchisee Wipula Fernando says one of the key benefits of ChoiceMAX has been the ability to review pricing against the competitor set over the course of a day, which makes his property more competitive against fluctuating rates.
Choice Hotels offers franchisees a training program that gives them a solid understanding of the revenue management process and knowledge of how the system interprets competitor pricing data and historical demand to predict rates.
Choice Hotels Asia-Pac CEO Trent Fraser says it’s exciting to offer franchisees a user-friendly, intuitive revenue management system and the bottom line benefits it brings.
“Revenue management expertise has been in the hands of larger properties, but the ChoiceMAX technology means even smaller hotels can see significant gains and better understand how to optimise their pricing,” he said.
“Choice Hotels dedicated team of revenue managers are there to support the rollout and upskilling of our hotel owners to ensure ChoiceMAX helps them get the best rate in market every time.”
Find out how your hotel will benefit by joining the Choice Hotels group. Contact the development team on 03 9243 2500 or visit JoinChoiceHotels.com.au
