Dear WuBookers, managing room inventory is a fundamental operation for every property. In fact, we can say that it is at the very heart of every hotel, B&B, or guesthouse’s business. Yet it is not always done optimally, partly due to shortcomings in the tools available. So let’s take a look at what it involves and how technology can improve not only daily practice but also profits.

What does managing hotel inventory mean?

Let’s start at the beginning. In order to operate, a hotel (or any other property) must sell the rooms it has available. Inventory is the set of accommodations divided by type and category, such as double rooms, single rooms, deluxe rooms, suites, etc. Managing inventory means carrying out all the operations necessary to secure reservations and sales: activities

that require a strategic and practical approach at the same time, but let’s go into a little more detail.

The price list

After cataloging the accommodations available for the market, it is necessary to define a price list, or a sales tariff. Each room must be valued based on many different factors: the type, the amenities and services offered, the location of the hotel, but also the prices of competitors, the season, and the sales positioning. Rates can be modified over time, even within a relatively short period (consider, for example, how demand changes between weekdays and weekends) and diversified by channel. Managing inventory therefore involves planning and strategy, or revenue management.

Distribution and sales

The next step is to sell, which can be done in two ways: directly or indirectly. Direct sales include walk-ins, phone calls to the hotel, and online reservations from your website; indirect sales come from intermediaries such as OTAs, wholesalers or bed banks, agencies, and tour operators. The rooms are the same, but there can be multiple purchasing channels. This requires perfect coordination of inventory and constant updating of actual availability to avoid unexpected overlaps or overbookings.

Staff training

Reception staff must be aware of rates and room availability at all times, especially in establishments that work extensively with telephone reservations or hotel call centers. Ad hoc requests must be handled accurately and consistently: there is nothing worse than a customer who has been quoted one price verbally and then finds themselves paying another, especially if it is higher! Here too, proper inventory management ensures not only profitable rates and effective distribution, but also widespread and centralized dissemination of information.

How to manage inventory effectively: PMS

PMS, or Property Management Software, serves precisely this purpose. Even better if it is an all-in-one PMS, such as Zak by WuBook, which also connects the management software to the Channel Manager and Booking Engine. But let’s take it one step at a time.

We have said that inventory is the set of accommodations divided by category and type made available to the market at a certain cost, which may vary over time. Well, imagine having to do this with pen and paper or a simple spreadsheet on your computer: it may work at first, but after a while you will realize that these tools are inadequate because they are distracting and inaccurate, exposing you to the risk of errors, financial losses, and embarrassment.

With the PMS by WuBook, this does not happen: by recording the various rooms with their prices and availability, you always have control over your offer and its performance over time. This allows you to adjust your sales rates and modify them according to the season and demand, for example through strategies such as Dynamic Pricing, which are essential for maximizing revenue. Or you can decide to close some accommodations at certain times of the year (perhaps to reduce operating costs) or change the terms of sale to increase earnings.

When it comes to sales, a PMS like Zak is ideal because it is integrated with two other essential modules:

• Booking Engine: the system that allows travelers to purchase hotel rooms online, without intermediaries and extra costs (neither for them nor for the property);
• Channel Manager: which allows you to sell rooms on third-party portals, and is always synchronized and updated in real time.

Accuracy and flexibility are essential when it comes to inventory management and, in fact, are also among the main advantages of using hotel management software such as Zak.

The advantages of using a PMS for inventory management

As we have seen, PMS is the answer to a series of very concrete critical issues that would otherwise be difficult to address. Its practical and strategic benefits are numerous.

Risk of error minimized

A shared inventory through a sophisticated management system such as Zak minimizes the risk of error. In fact, by updating in real time, it avoids unpleasant situations such as overlapping reservations or overbooking. This means that you can sell the same accommodation on multiple platforms simultaneously without having to worry about anything: the software will manage the general calendar based on the purchases received, opening or closing the room on all channels where it is present.

Maximum customization and flexibility

The PMS also allows for great flexibility and customization. Starting with the type of rooms and set-ups that can be created. For example, you can assign different configurations (single, double, etc.) to the same physical room, depending on the season and business opportunities. In Zak, you can even create so-called super products: rooms that can be offered individually—as separate accommodations—or as a single accommodation. For example, a two-family apartment can be booked in its entirety or divided into several solutions.

The same flexibility also applies to everything related to rates and promotions: these can always be modified as desired and diversified by sales channel.

Strategy based on real data

Setting room prices is the most delicate but also the most dynamic part, at least for those who decide to adopt a variable pricing strategy. This process is also based on historical performance.

Trend data is invaluable for better understanding who your guests are, what they buy and at what price, when, and how much profit this generates for the property. This information, together with other external factors (events, weather conditions, etc.), should constantly guide your offering. Zak’s statistics provide a comprehensive overview of rooms sold, channels, and margins and are essential for determining the optimal pricing strategy.

Optimized distribution and increased earnings

This also has another effect: in light of the numbers and revenues generated by the various channels, it is possible to choose which ones are worth investing in and how. A hotelier might decide not to share their entire inventory with a certain OTA, but only certain rooms and only with certain configurations, because perhaps those are the ones most in demand on that agency. Or, conversely, they might want to open up their entire catalog to maximize the platform’s potential or to obtain other benefits (greater visibility, access to OTA’s reserved programs, etc.). The all-in-one PMS simplifies all these assessments and actions.

Efficiency guaranteed

Speaking of facilitation, guests and internal staff also benefit greatly from the introduction of inventory management software. How? The former, because they can book independently whenever and however they want: by phone, in person, or online (thanks to integration with the Booking Engine). In turn, staff no longer have to worry about unwanted overbookings and can provide accurate information thanks to the constantly updated reservation calendar. Their work is speeded up and time-consuming and burdensome steps are simplified.

Guest satisfaction (and reputation secured!)

Efficient and effective inventory management also brings significant benefits for guests, who can count on impeccable service and much more helpful staff because they are not busy with lengthy manual tasks. This translates into greater satisfaction for customers and, as a result, a generally positive image and reputation.

Inventory management is truly at the heart of hotel operations, but not everyone knows how to do it well. In a highly competitive environment such as tourism, this advantage could help make the difference in terms of operations and profits.