It’s an exciting time to be a Revenue Manager. We are seeing more disruption and innovation in this space than we have for some time - and there are plenty of opportunities for the savvy Revenue Manager to break from tradition and take an integrated, data-driven approach to the role.
In this report, L19 Hospitality Management give us their take on Revenue Management in 2018: what you need, what to avoid, and how to avoid the dreaded ‘data overload’. Download below, or read on for a sneak peek:
What does a successful Revenue Management strategy look like?
Cohesive. Forward-looking. Realistic.
It’s all too common to see Revenue Managers focusing more on data collection than on making useful decisions. Sometimes they can be too concerned with ‘looking busy’ to their management teams - so they spend time producing long documents that don’t really mean anything to anyone.
A successful Revenue Management strategy has to be about looking forward, taking lessons you’ve learned and applying them to your plans for the future. Furthermore, it’s easy for Revenue Managers to feel isolated within their organization, so buy-in from all levels is hugely important.
Any cohesive strategy should be 100% bought into by the whole team.
We fundamentally believe that a level of centralization is the way forward for any hotel group. Even if you are only two hotels, if your revenue management team is operating in two separate units then you’re effectively in competition with each other.
When you centralize, you remove the emotion which is often attached to individual properties. Obviously an emotional connection can be a very positive thing, but it can also get in the way of making sensible decisions.
Every hotel has a ‘bad room’ that they don’t want to give to people. But is it really bad? It could just be a case of marketing and pricing it differently. Centralization can solve that problem.
The team at L19 are specialists in the selection, implementation and operation of systems covering all aspects of hotel management. Director Jonathan Parker is an expert in the re-structuring and operational management of hotel sales and revenue functions with a focus on revenue growth and cost reduction. In his role at Luxury Family Hotels, Jonathan was one of the first adopters of Triptease's Price Check.