Sink or Sail? Moving from instinct to data-driven decisions
By Kristi White Director of Revenue Optimization, TravelCLICK, Inc. | May 13, 2012
For years, making decisions in revenue management and, to some extent, hotel management has been ruled by gut instinct. Revenue managers and hotel operations executives frequently justify their rate setting decisions by saying, "I have a feel for the market" or "I know what the market will do." Yet when asked for a concrete example of how they knew this, they usually have no answer.
Smooth economic times are behind us and while their return is inevitable, today we must navigate challenging waters. Instincts and gut feel will not keep the boat, or your hotel, afloat. To successfully navigate these treacherous times, hotels must embrace more intelligent decision processes. Decisions based on verifiable data that guide and support the decision will sustain hotels in the short term and grow in the long term.
How can you make the move from instinct-driven to data-driven business decisions? Here is a proven a six-step process:
1. Select a change manager
Changing organizational mindset is a mighty task. A change manager can help build consensus among team members, foster relationships that will facilitate change, and make sure the change is adhered to. Select someone for this role who is comfortable with change, can make decisions quickly, and can adjust as results require.
2. Gain executive team agreement
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