Five Things Every Revenue Manager Should Be Doing
By Paul van Meerendonk Director of Advisory Services, IDeaS Revenue Solutions | September 23, 2012
According to attendees at this year's HSMAI Revenue Optimization Conference (ROC), revenue managers wear a lot of hats these days. When asked to define their roles before the keynote address, just a few of the many answers included "forecaster, analyst, strategist, system designer, marketing guru, talent manager, social media expert, data miner, sales support and, channel manager." With this many labels, it can be challenging for revenue managers to navigate the arena and decipher the best use of their time and energy. On top of this, faced with a seemingly endless amount of data to collect and analyze, it can also be easy to overlook the big picture, which is developing comprehensive, innovative revenue strategies that maximize profitability.
In order to help revenue managers stay on track and better position their organizations for long-term success, below are five high-level tips for raising the bottom line.
#1 – Collect the Right Data
Amid today's high-speed, interconnected nature of business, one of the most important things revenue managers should be doing is collecting and analyzing the right data-particularly data that is both historical and futuristic. For example, from a historical perspective, data should be collected on booking patterns for various market segments, market conditions, room types, and more. Revenue managers can then look at this information and use it to forecast future booking pace-typically about 90 days ahead. By doing this consistently, revenue managers can more easily compare current and predicted activity levels to the historical data and make adjustments to pricing strategies as needed.
However, collecting all of this data manually takes a significant amount of time and energy. Amid a flurry of flash sales, mobile marketing, and online travel agencies (OTAs), it can be tough for revenue managers to quickly recognize changes in demand and react in time to make a profit. In order to remain competitive, many hoteliers turn to revenue management software, which automatically provides executives with the data they need when they need it-often cutting their daily workload in half. Through a series of high-speed, complex algorithms, revenue management software automatically assesses hotel performance on a daily, weekly, monthly, and annual basis, allowing revenue managers to quickly compare rooms sold and revenue against data at the market segment and total hotel level. Automated revenue management systems also free up revenue managers' time for making more strategic, proactive decisions for their hotels.
#2 – Deepen Customer Intelligence Processes