Revenue Management: The Creative Strategies and Additional Sources of Revenue

By Ahmed Mahmoud Founder, revenueyourhotel.com | September 09, 2012

It’s usually a safe bet to assume that any hotel would like to increase its revenue and acquire more profits. High-performing hotels foster a culture of constant improvement and regularly ask, “How can we grow and sustain increasing levels of income?”

Believing that there are a number of different income growth strategies that hotels can use to generate much-needed revenue, each strategy comes at a different “price.” While some revenue sources are easy to implement and require little technical expertise, others might be perfectly suited for the missions and strengths of your hotel, yet require a more significant investment.

It is well known information for everyone working in the hotel industry that revenue stream comes through rooms, Food & Beverage, banquets and ancillary revenues, etc. This is why there is a new emphasis today on total guest revenue. However, we still believe that there are so many missed opportunities for possible sales in any hotel, although sales can depend on a complex combination of factors that can be affected by anything starting from customer service and behaviors to bad weather.

Revenue growth and exploring new revenue resources is the aim for everyone and it is everyone's business, so why can’t we make it part of everyone's daily work routine. Every employee wants to be part of a company's growth agenda, but most don't know how. Hotel management needs to provide them with both information and tools, starting with making revenue growth an inherent part of daily conversations, meetings, and presentations.

Revenue Management

We have all heard the old motto/pivot of Revenue Management:

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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.