A Day in the Life of Two Revenue Managers
By Paul van Meerendonk Director of Advisory Services, IDeaS Revenue Solutions | April 17, 2016
Recent discussions have been swirling around the revenue management industry and its swift evolution over the past few years, moving steadily past merely filling as many rooms as possible to holistically approaching the quest for achieving total revenue performance. However, approaches and technologies have not been the only revenue management components swept up in these influential winds of change. The lives of hotel revenue managers have also experienced drastic changes in not only their job responsibilities, but in their overall work efficiencies, insights and performance.
The average hotel revenue manager touches a diverse range of systems within their role: reputation management, channel management, rate shopping, revenue management, property management and central reservations systems. And as advancements in these system technologies have improved how hotels are driving better revenue, they have also freed revenue managers from the tactical handcuffs once restraining their productivity.
To expound on the impacts that technology has brought to the lives of modern day revenue managers, let's examine a typical day in their life – a life with an automated revenue management system and a life still relying on manual spreadsheets and home grown processes.
A Day without Automation
A typical morning routine for most revenue managers begins by reviewing their hotel's performance from the previous day. Without an automated revenue management system (RMS), a report is likely pulled from the hotel's property management system (PMS). This report accounts for the property's out of order rooms, no-shows and actuals from the day before. It includes the necessary data points to allow the revenue manager to begin investigating any changes in hotel bookings since the day before.
Once the hotel's daily performance has been thoroughly reviewed, it is generally a suitable time to meet with the hotel sales team to discuss any group opportunities they have in the pipeline. To assist the revenue manager, s/he generally maintains a "business-on-books" folder (sometimes referred to as "BOB.") BOB is referenced during all internal revenue meetings, in this case helping the revenue manager and the group sales team decide if their prospective group business is worth taking – and at which rates they should accept each group.
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