The New Paradigm for Revenue Management

By Bhanu Chopra CEO, RateGain | April 19, 2015

Revenue Management as a discipline is becoming more exciting everyday. The world is changing at a pace never seen before, driven by technology. The rapid growth in technology and various other factors like changing customer demands and demographic changes are making the job of a revenue manager more complex. This rapid pace of changes presents opportunities as well as challenges.

How can revenue managers make the most out of this situation?

In a recent conversation, Benedict Cummins, Publisher of HotelExecutive, and Bhanu Chopra, CEO and founder of RateGain, discussed how revenue managers can leverage these opportunities and make more revenue, consistently.

Benedict: Bhanu, your company has been in the Revenue Management space for over 10 years now. Over that period, the discipline has evolved a lot. What do you think are the key drivers of the change?

Bhanu: Benedict, I believe we need to answer this question firstly by examining what has changed for customers. I feel that the primary driver of the changes in the hospitality industry is the easy availability of information. OTAs, review sites, metasearch sites and social media have thrown open a world of information. The phenomenon of information going online and becoming universally available was the big paradigm shift.

Earlier consumers had very limited choices when they wanted to book a hotel room. However, people today have more options than ever before and clear benchmarks to base their decisions on. They can research options based on price, amenities, reviews and various other factors and make a choice while at home, at work, or on the move. Nowadays, when a customer makes a booking, he or she knows that they are getting true value for the amount of money that they are spending. This facilitation of the decision making process is the big paradigm shift.

Coming up in January 2018...

Mobile Technology: Relentless Innovation

Technology has become a crucial component in attracting and retaining hotel guests, and the need to enhance a guest’s technology experience is driving a relentless pace of innovation. To meet and exceed guest expectations, 54% of hotels will spend more on technology in 2018, and mobile solutions in particular will top the list of capital investments. Many hotels are integrating mobile booking, mobile keys, mobile payments and mobile check-in into their operations. Other hotels are emphasizing the in-room experience, boosting bandwidth and upgrading flat screen TVs to more easily interface with guest mobile devices. And though not yet mainstream, there are many exciting technology developments on the near horizon. The Internet of Things (loT) is taking form in some places, and can be found in guest room control systems, voice activation systems, and in wearable sensors that can be used for access and payment options. Virtual reality headsets are available at some hotels so guests can enjoy virtual trips to exotic locations or if off-property, preview conference facilities and guest rooms. How long will it be before a hotel employs a fleet of robots for room service, or utilizes a hologram as a concierge, or installs gesture-controlled walls that feature interactive digital displays? Some hotels are already using augmented reality for translation services, or interactive wall maps, or even virtual décor. This pace of innovation is challenging property owners and brands to stay on top of the latest technology trends while still addressing current projects. The January Hotel Business Review will explore what some hotels are doing to maximize their opportunities in the mobile technology space.