Revenue Management aims at predicting future unconstrained demand, implement pricing, distribution and marketing strategies to outperform competitors and maximize RevPAR.
Every time I start on a new project, I am the most excited with the initial phase of discovering what that means for that specific client.
Hoteliers have experienced all types and forms of sales and revenue strategies in their careers. The bottom line is that the discipline and practices still vary widely from one property or brand to another.
At the very beginning of the Customer Acquisition & Retention Matrix, three major components foster successful revenue strategies in Hotels.
The Revenue Culture
Facing Out: Satisfaction is #1 priority
There is no hope to drive higher revenues if the guest’s experience is not positive. In a world of real-time Twitter feedback and Social Media empowerment, a good reputation makes it easier to drive rates and occupancy. A bad reputation makes it tougher to drive higher rates and usually leads to more reliance on Online Travel Agencies.
Facing In: Education & Weekly updates
How frequently does the property have revenue meetings? Who attends? Who is in charge? These questions can define your internal revenue culture. Revenue meeting participants are often afraid to speak up because strategies tend to include foreign concepts. This meeting is a unique opportunity to discuss trends, solicit the team’s input and educate one another that should be maximized.
The Performance Mindset
Do you share a common understanding of what’s critical for the Asset?
Each member of the Team works toward mutual objectives where measurements are consistent across Revenue, Sales & Marketing, Operations and Finance.
Are the goals aligned on profitability?
It is nearly impossible to effectively optimize profit when the revenue team is incentivized on RevPar and market penetration index and the sales team follows production volume and individual goals.
The Technology Stack
Upgraded Tool Box
What kind of systems do you use? Is reporting manually or automatically generated?
Hotels should no longer be limited by legacy systems. The market is filled with vendors offering data extraction and products at a cost that fits any hotel’s budget. Making data simple and visible leads to better forecasting accuracy and anticipation of incoming activity shortfalls.
Do you own the relationship with your Guests?
Business Intelligence, Revenue Management and Customer Relationship Management solutions are all converging to provide actionable guest insights. Hotels can acquire the technology driving a one-to-one relationship to the guest during pre-stay, in-stay and post-stay cycles.
TRI Hospitality helps hotels and hotel companies build a revenue culture, align their focus and define their technology stack. We understand how each hotel, team or brand is different for the next one. There is no one-size-fits solution but a carefully customized plan that will shift business habits and drive demand while respecting the specific attributes of our clients. For more information, review our services or drop us a note!