Hotel service is built around team work. From front desk rock stars to detail-oriented room attendants to friendly and personable bartenders, every department and every job role plays a fundamental role in crafting the ultimate hotel guest experience.
A similar approach can ensure comparable success with a hotel’s revenue management strategy. Hotels typically have multiple revenue streams, but team members within those streams often function in individual silos. For example, a spa manager will typically work separately from the person managing room revenue and the person managing the hotel’s event spaces.
However, this particular revenue management style limits revenue performance. To maximize profits and blow past today’s fierce competition, it’s important to consider all revenue streams in relation to one another. This shift toward a more holistic revenue management strategy represents an evolution in the hotel industry. Progressive hoteliers embracing total revenue performance are enjoying a plethora of profitable revenue benefits.
Total revenue performance requires sophisticated analytics technology to aggregate and transform large, disparate data sets into actionable intelligence. That means all those complex numbers in databases stop collecting virtual dust and start giving you the competitive edge you want. These advanced software systems analyze data through powerful algorithms to make accurate demand forecasts and strategic pricing decisions for all streams of revenue.
When you take a holistic approach to managing hotel revenue, you might have to experiment with different levers to find the perfect profitability balance. After all, total revenue performance cannot occur in a vacuum. With the right data in hand, you can shift prices in a variety of hotel areas to optimize revenue streams. For example: lowering room prices on a given weekend may boost spa and restaurant reservations. While each stream is adjusted individually, they all affect the big picture. Think about these adjustments as using the right pulleys and levers to keep the hotel running like a finely tuned machine.
As hotels move toward total revenue performance, it’s also necessary to rethink how teams interact and realign business processes. This becomes the right time to implement new educational approaches and evaluate job roles and scope. And while it can be a complex undertaking, the reward is worth the effort. Building a long-term total revenue performance culture gives hotels an undeniable competitive edge, which means less stress, climbing growth charts and reaching the hotel’s revenue dream.