LeisureLink has introduced a new offering in Active Revenue Management (ARM) system for specialty lodging suppliers.

Published: 22 Sep 2010

LeisureLink has introduced a new offering in Active Revenue Management (ARM) system for specialty lodging suppliers.

The company says ARM uses real-time market data and technology to give its clients the same pricing tools previously available to only the largest hotel chains and airlines.

“Pricing perishable inventory online is extremely difficult, and it is a major problem for specialty lodging providers,” said Erik Hovanec, President and Chief Executive Officer of LeisureLink. “The solution requires a heavy investment in technology to collect real time market information and correctly adjust prices multiple times per day.”

The company highlighted that unsold inventory is the greatest drag on the profits and RevPar of smaller lodging providers. LeisureLink’s market research confirms that many specialty lodging units fail to sell, even in season, due to minor pricing errors.

The specialty lodging segment has $8 billion in annual sales, and experiences vacancy rates that are much higher than the 32 percent, according to Smith Travel Research, experienced by larger lodging providers.

“Simply being a few dollars above market means that you will miss a fleeting opportunity to sell a unit. You can never get that lost revenue back. ARM ensures that you have the right rate, every time” said Hovanec.

LeisureLink says its distribution network gives it an enormous volume of market data, including pricing and consumer demand. That data is coupled with proprietary pricing algorithms to adjust rates in real time to maximise revenues and occupancy.

“ARM delivers enterprise quality revenue management via our Software as a Service (SaaS) platform, making it affordable for specialty lodging properties for the first time,” said Hovanec.