The main benefits of using hard controls is that they give us more control over our inventory. We can use them for future days when we know we are going to be extremely busy. They help us protect the inventory on big holidays, such as New Year’s Eve.
Hard Control: Closed to Arrival
Closed to Arrival or CTA is a hard control that stops the guests from ‘arriving’ on the day it is implemented. For example, if we have a three-day event and we only want guests to come on the first day of the event, we can put a CTA on the second day. This means that the guests won’t be able to arrive on the second day, but will still be able to make bookings.
While it gives us the possibility to limit the arrivals, it also allows longer stays to still come in.
This hard control is beneficial for events or holidays that we want to protect even further out. It is an ideal addition to our
Revenue Management strategy, and helps us control the inventory better.
Hard Control: CLO
Closed is the hard control that completely closes off your hotel from business on the day when it’s implemented.
This control is there to help you stop any bookings from coming in, and to manage the inventory better. However, we need to be mindful while using this one, as it can also easily harm your reputation among not just guests but even OTAs.
What is the difference between CTA and CLO?
The biggest difference is that while on CTA, the guests can still stay on the specific day if they book a longer stay. On the other hand, while on CLO, no one can stay on that day no matter for how many nights they are coming in.
When is it appropriate to use Hard Controls?
These hard controls can only be used to manage the inventory better on busy days, such as big holidays, events or any specific reason for limited inventory.
How do Hard Controls help in managing the hotel more efficiently?
Hard controls are there to help the hotel maximize revenue. For example, if there is a big group coming to the hotel and we have only 5 more rooms left to sell on Saturday, it’s better to ensure those 5 rooms are booked by a guest who intends to stay longer. Hence, implementing a CTA on Saturday will help us achieve this goal.
The same can be done with CLO. For instance, if you’re expecting a lot of walk-ins for a particular weekend, or need to get some rooms renovated, this hard control might help.
What are the main benefits of using Hard Controls correctly?
The main benefits of using hard controls is that they give us more control over our inventory. We can use them for future days when we know we are going to be extremely busy. They help us protect the inventory on big holidays, such as New Year’s Eve.
The trick is to use them only when absolutely necessary, and to keep a track of your every move. It also helps us achieve our ideal business mix and restricts what we can pick up on days when we have very good potential.
Conclusion
In conclusion, these hard controls are there to help us manage our inventory, and to give us more control on what we are selling.
Mostly they should only be utilized around big events, group bookings, or important holidays, where we certainly know that it is the best way to earn higher revenue.
If not used correctly, hard controls can seriously restrict inventory, and cause harm to your overall revenue strategy.
Tools like PMS (Property Management System) and CM (Channel Manager) only assist lodging establishments in operating more simply, saving time, and being more efficient compared to not using them. However, that is not the root of growth or the challenges faced in the accommodation business. If you want to effectively manage OTA channels and create stable growth, you should have a clear understanding of how OTA platforms operate, such as their nature, operational models, and how they display, calculate displayed prices, and collect prices (after deducting commissions). Of course, larger hotels that want to approach it systematically will do it synchronously from the beginning, but smaller lodging establishments wanting to reduce operational costs should overlook it and focus on optimizing display and providing outstanding customer care.
Synthesized by: OTA Lyst
