A Revenue Manager's Guide to Surviving the Awkward Teenage Years
By Kelly McGuire Vice President, Advanced Analytics, Wyndham Destination Network | December 06, 2015
Revenue management is relatively new to the hotel industry. Hotels only really started to adopt revenue management processes and systems broadly in the late 90s and early 2000s. We've managed to achieve success and gain visibility over the last couple of decades, but we are a relatively young discipline in hospitality. In fact, it could be said that revenue management is still in its teenage years, and, in my opinion, we are definitely acting like it:
Hanging Out with the Wrong Crowd
Revenue management has been hanging with
the wrong crowd, particularly during the 2008 economic downturn. We snuck
out after curfew to hang out in the parking lot with a bunch of rogue
technology start-ups who promised a good time reaching new guests through
alternative, deep discount, channels. "Go ahead, sell 1,000 rooms at 50% off
with no restrictions. Everyone's doing it." or "Don't worry, your high
paying guests will never find that out you are discounting rooms 30% day of
We have been experimenting with dangerous things. Like data.
Some of this data our parents already warned us about, like regrets,
denials, and weather. But there are new designer data sources too, like
reputation, customer lifetime value, and forward-looking demand. Some may
help us, some may be fun to play with for a while, but some may eventually
kill our forecasts and pricing recommendations.
Making Up Our Own Language
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