There’s a lot to be gained — beyond increased revenue and profits — from setting a successful Revenue Strategy in motion in a hotel or casino. A sound plan can reduce time and costs, improve marketing and sales activities and help a property gain competitive intelligence and market insights.
But in order to establish a successful strategy, a few things have to happen. First, certain technologies must be in place. This often means upgrading from legacy systems that are no longer efficient and do not integrate with the state-of-the-art technologies to a next-generation revenue management solution that can make it easier for hotels to calculate price sensitivity of guest demand to derive an analytical solution to competitive price effects.How to select the right hotel revenue management solution Click To Tweet
According to The 2017 Smart Decision Guide to Hospitality Revenue Management, upgrading requires more than simply implementing the right tech solution and using the right data sources. It also means investing in revenue management talent, building a revenue strategy culture and fostering collaboration between revenue management and other departments.
Here is a handful of key recommendations for decision makers with insights for selecting the right revenue management solution in the context of their hotel’s or resort’s specific needs:
1. Get the right person in the right place.
“The goal is to ensure the solution uses the best information available to produce the most beneficial mix of automated decisions that drive profitable business performance. And that requires human input.”
Revenue managers must have specific skills in order to succeed, like knowing how to directly interact with system inputs and share business insights. While in some properties the General Manager fills this role, it’s ideal to have someone in place who has been trained in the science of demand forecasting and price optimization.
2. Build a revenue management strategy and culture.
“A revenue management strategy is a blueprint for improving financial performance over a specific period of time … Done right, the strategy will help create cognitive alignment amongst all employees regarding the value of revenue management.”
When all departments, from sales to marketing to food & beverage and beyond, are working toward the same goals, and on the same page, it’s far more productive and profitable for a hotel.
3. Foster Collaboration.
“To achieve optimal results, it’s imperative that revenue managers work hand-in-hand with the sales and marketing functions and integrate all of their customer acquisition strategies.”
The data that filters through the revenue manager’s office is incredibly valuable across all parts of the hotel, especially marketing. When this data is shared, it can inform campaigns, drive offers and promotions and help hotels see which marketing tactics result in the most profitable bookings.
For even more practical advice for putting the right resources, processes and metrics in place to maximize success and drive continuous performance improvement, check out the full guide here.
RELATED REVENUE STRATEGY ARTICLES:
- Why Excel Isn’t Enough For Revenue Strategy
- Old, Closed-Off IT Systems Won’t Fly In Modern Hotel Industry
- Should Hotels Buy or Build Technology? (Video)
Latest posts by Joanna DeChellis, Contributing Editor (see all)
- MGM Addresses Vegas Shooting on Earnings Call - November 14, 2017
- Vegas Tourism Braces for Shooting Aftermath - October 17, 2017
- How Cognitive Computing Will Transform Hospitality - September 14, 2017