Revenue tools drive Choice Hotels
Choice Hotels Asia-Pacific has introduced an automated revenue management tool for its franchise network, giving hotel owners better insight into competitive pricing and showing promising gains in ADR and RevPAR for participating properties.
Already used in 5,000 hotels across the United States, the ChoiceMAX Revenue Management System was developed exclusively for Choice Hotels by IDeaS, the world’s leading provider of revenue management software and services. The solution received a Hospitality Technology Hotel Visionary Award for business innovation in January 2022.
ChoiceMAX is mobile, leveraging pricing algorithms to help hotels optimize their pricing structure, which can ultimately increase revenue.
The revenue management system features a 365-day optimization window, including intra-day optimization with rates updated multiple times a day, real-time alerts that can be customized to stay current on price changes or when competitors adapt, automated delivery and implementation. pricing decisions, forecast automation, and the ability to set price floors and caps and use rolling pricing to generate incremental revenue from each room night.
Choice Hotels introduced professional revenue management services for franchisees in 2017. The service delivered impressive RevPAR gains for participating hotels throughout the 2022 closures and recovery. Revenue management hotels exceeded the market RevPAR of 14% in the first quarter and non-RM hotels of the Choice Hotels group of 33%.
Quality Hotel Regent Rockhampton was one of the first properties to use the ChoiceMAX, and despite some segmentation changes, the property saw ADR growth of $16 year-over-year.
Franchisee Wipula Fernando says one of the main benefits of ChoiceMAX has been the ability to reprice against the competitor over the course of a day, making his ownership more competitive in the face of price fluctuations.
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 forecast rates.
Trent Fraser, CEO of Choice Hotels Asia-Pac, says it’s exciting to offer franchisees a user-friendly and intuitive revenue management system and the benefits it brings.
“Revenue management expertise has been in the hands of larger properties, but ChoiceMAX technology means even smaller hotels can see significant gains and better understand how to optimize their pricing,” he said.
“Choice Hotels’ dedicated team of revenue managers are here to support the deployment and development of our hotel owners to ensure ChoiceMAX helps them get the best market rate 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