The Revenue Management Revolution
Today, we’re diving into revenue management. We looked into articles on what your GM should know about your RM, the kinds of skills today’s revenue managers should have to be successful, and the big shift in expectations and best practices for RMs in modern hotels.
Check out how to give your RM knowledge and skills a serious boost:
The 10,000 or so Hotel Revenue Managers around the world are self-dividing into two distinct categories: those that are well-prepared (or preparing) for 2024 and those that are well prepared for 2004. Ten years ago, a perfect storm of historic levels of revenue and the birth of the OTAs led to the explosion of the newest profession in the hospitality industry – the Hotel Revenue Manager.
Ten years later, the global travel market is very different. What is the role of the RM profession that was born during easy times in today’s more challenging business environment? The most successful RMs are going from departmental silos to viewing the hotel as an ecosystem, focusing on relationships with guests and always, always using data to back up their findings.
The pressure is mounting for Hotel Revenue Managers to provide data-driven insights that will lead directly to higher profit. Long gone are the days when RM could easily boost revenue just by joining another OTA.
Unfortunately, there’s an analytics talent gap in Hotel RMs, and it’s only getting worse. We looked at 5,000 public LinkedIn profiles to find out what percentage of Hotel RMs are equipped with the right skills to really exploit their company’s data assets. What we found is alarming, but also a great opportunity for motivated RMs and those trying to get into the profession.
Think data analytics are a fad? Think again. Strategies that dismiss the benefits of data analytics and revenue optimization as a trend used by inexperienced hoteliers are a sure-fire way to hand profits to the OTAs.
These data-less strategies are the same tactics used by thousands of properties every day. If you want to give your direct bookings over to the OTAs, here are five sure-fire ways to do it.
Today, a revolution is happening in hotel revenue management as hoteliers with the highest profit expectations are beginning to follow the customer instead of the product. They are using advanced analytics to dump their dependence on crude “Per Available Rooms” (PAR) averages, and have begun the move to measure their world by predictive indicators based on “Per Available Customers” (PAC).
This is the Big RM Reset. It is a seismic shift that is reframing the Hotel Revenue Manager’s worldview from PAR to PAC. Here are the steps required to profit from this transformation.
In today’s seemingly ever-changing hospitality market, hotel general managers have become the key collaborators linking marketing, sales, reservations and e-commerce divisions within a property. Sometimes, though, things can get lost in the shuffle – here’s 5 things today’s GMs need to understand about revenue management.
What’s your hotel’s experience with the revenue management revolution? Is your hotel keeping up? Let us know in the comments below.