Why Revenue Management and Marketing are Ideal Partners
By Marcela Trujillo Senior Revenue Consultant, Total Customized Revenue Management | June 30, 2019
Revenue and Marketing – the perfect data-driven pair. This dynamic duo makes a significant impact on hotel revenues – not only rooms revenue, but all revenue streams within hotels and resorts, including spa, golf, catering, banquets and other food and beverage outlets, and meeting space. Marketing and revenue teams that are aligned in goals and strategy garner significantly higher revenue contributions than siloed teams. While the disciplines are different, the focus on driving revenue for the benefit of the asset is the common thread that ties these partners together.
Looking at Both Sides Now
The term Revenue Management, as well as the job title of Revenue Manager, have long been associated with analytics, pricing, and revenue generation. At a basic level this still holds true, but the role and job description of a revenue professional has expanded far beyond this limited definition. An evolved Revenue Manager understands the importance of fusing marketing into the very core of the revenue strategy. At the same time, a Marketing professional understands that marketing strategy is now a key factor in Revenue Management.
Both Marketing and Revenue positions are defined by similar principles. Revenue delivers the right product to the right person at the right time at the right price. Marketing delivers the right message at the right time to the right person.
Messaging that aligns the product with a specific database can not only attract these direct consumers, but can lead the right consumers to the hotel – consumers who will increase average rate but will also add ancillary spend. By targeting that business traveler who loves to take advantage of room service to dine in-room after a long day, or the traveler that is looking for an unforgettable experience, marketing teams offer each guest exactly what they are looking for during their stay.
The design and navigation within the property website should be purposefully laid out to immediately engage the consumer and to incentivize them to book directly with the hotel. A solid partnership between Revenue and Marketing, crafting enticing offers with the correct pricing, whether on the property's website or a banner ad, will increase the likelihood of the consumer confirming their reservation.