Inventory management

An Inventory makes it possible to control what type of rooms and how many you make available to a particular market segment.

Most hotels have an Inventory. In fact, not to have one is a poor business decision, as knowing room availability at all times can be useful when making rapid decisions. When looking to maximize profits, having room availability data at your fingertips can give a hotel a competitive advantage in the marketplace. Effective inventory management for hotels involves both revenue management (creating and managing demand) and yield management (maximising returns). The investment backing a hotel is tied up in its real estate and the returns can only be gained from renting out that real estate optimally.

Inventory distribution

Hotels generally advertise their rooms through multiple channels, such as online travel agencies, to optimize reach and promote sales. Distribution management is essential and this involves calculating the minimum numbers of rooms needing to be sold for any given period by each channel. In doing so, you then have the ability to make informed choices regarding reallocation from cancellations or where to list spare rooms to maximize sales.

Inventory control

When managing and controlling inventory you are always looking for ways to improve your operations. Overbooking, No Shows, bouncing etc are some of the key challenges for operations. We help you controlling and keep these issues away from you. No-shows” … can have a negative impact in how successfully an organization, business or institution operates. Their actions can result in lost revenue, changes in employees’ schedules and increased expenses.

Inventory forecasting

By looking at your previous sales history and developing patterns, we anticipate for you demand and forecast more accurately. When you can anticipate demand, you can plan your inventory levels and management systems to prevent room inventory or overbooking. When looking at inventory forecasting it is important to hone in on the PEAK demand time needed for inventory to arrive.

Overall inventory performance

In order to truly understand how your business is functioning, it is imperative to understand what products are turning a profit and performing highly for you. There are a multitude of factors affecting inventory management such as inventory turnover, inventory accuracy and item fill rate that can be revealed in this report. For example, by looking closer at inventory turnover, you can assess which products are getting replaced more than others over the course of a specific time frame.