Human Capital: Finding the Best Talent and Retaiining Your Investment
By Robert Festinger General Manager, YVE Hotel Miami | June 21, 2015
Fifteen years ago, revenue management was not considered a crucial part of hotel operations. Revenue Managers weren't even committee members within the industry as they were more thought of as "glorified reservationists," who at most would report to the Director of Sales and Marketing. As a consequence, hotels trailed behind, still learning the dynamics behind rate-optimization and pricing strategies that were only implemented a few times a year.
Fast forward to 2015, years of advancement in channel distribution, mathematical algorithms and technological innovations have elevated the role of Revenue Managers. All those developments combined with the rise in e-commerce took away the attention from wholesaler and travel agent brochures and in turn put the focus back on revenue management as the nucleus stimulating day-to-day sales and hotel operations across all channels.
But successful revenue management goes beyond having good market intuition and mathematical skills. The local and global economies, brand value and services, data analytics, user-friendly interface systems and OTAs are all factors that need to be considered for hotel brands to grow and prosper in their target markets.
As we prepare for one of the highest travel seasons, here are some essential tips Revenue Managers should follow in order to optimize their existing revenue management programs and bring success to their brand on both a local and global scale.
Look Further Than You Can See
Hotel revenue management is an integral part of hotels' future performance, regardless of size and location, and entails more than just balancing occupancy and revenue optimization. Revenue Managers are now the engine of the hotel and the decision makers that are defining tomorrow's hotel business and building long-term customer relationships.