Advisory Services answers recent client questions about hotel revenue management
Two of the year’s biggest events, HITEC and ROC, are currently underway in Houston, and hoteliers at these shows want to know more about how they can realize total revenue performance for their property.
Total revenue performance continues to be a priority for most hotel organizations, and revenue management plays a key role in achieving it. When revenue management is practiced as a continued process and supported by the right balance of people, processes and tools, profit breakthroughs become possible.
Many revenue managers are familiar with the revenue cycle and follow the continued process as a part of their day-to-day—collecting and analyzing data, preparing a forecast, deciding on pricing and inventory strategies and monitoring the results of their decisions. Some processes are more sophisticated and include other areas such as demand optimization, distribution and customer service. Whether simplistic or sophisticated, the revenue cycle requires that each area is well understood to attain the right balance between people, processes and tools.
As you strive to improve revenue management practices, a closer look at your tools and technology is essential. What works and what can be upgraded is a common discussion. At the end of the day, with all the advanced technology available and the rate at which it changes, there seems to always be a better option out there. Fortunately, tools and technology can be upgraded more easily and faster compared to the effort it takes to upgrade people’s knowledge and understanding as well as modify processes or ways of doing things.
In most organizations, the time and effort to align people and processes is underestimated and rarely evaluated prior or post any technology upgrades. Thus, when thinking about total revenue performance, first make sure to evaluate if the three pillars of people, processes and tools are aligned, and plan on the actions needed to maintain that alignment going forward.
Total revenue performance is possible for your property. Just keep in mind that modifying your business’s ways of doing things may take more effort than expected as, by nature, most human beings don’t like change.
Thanks for reading this post, and if you happen to be in Houston this week, be sure to stop by and visit IDeaS at both HITEC and ROC.
Hey, don’t leave now—the fun is just beginning. Here are more industry insights making the rounds this week:
- Which Direct Booking Incentives Actually Work?: The hotel marketing maestros at Tambourine have taken a deep dive into their diverse portfolio to evaluate which direct-booking benefits really made a difference for hotels and their guests.
- These 10 Things Are Probably Broken with Your Hotel Marketing: If it ain’t broke, don’t fix it, right? Well, not exactly. According to Fuel, whether you realize it or not, your hotel marketing infrastructure may be out of order without you realizing it.
- Hotel 2025: Robotics – Human Complement or Substitute?: Straight out of their Hotel 2025 report, Oracle Hospitality shares some futuristic insights about the emergence of hotel robotics.
- GDPR – 5 Last Minute Things That You Need to Do: GDPR still got you scrambling to be in full compliance? Trust You has a quick checklist to help ensure you’ve got everything squared away, and your corner drugstore has the aspirin.
- Back to Work – Hotel Change Management in the Era of COVID - July 22, 2020
- A Hotelier’s Guide to Major Events: Are You Ready for Some Football? - November 26, 2019
- Bridging the Industry with Digna M. Kolar - September 26, 2018