5 Tips for Leveraging Your Revenue Management Efforts

By Drew Salapka Vice President of Sales and Revenue Generation, Hotel Equities | September 29, 2013

As a growing field in the hospitality industry, revenue management requires expertise in both art and science to leverage its potential. The art of working with people and building relationships remains the heart of the business and it is the first tip for leveraging your revenue management efforts. Revenue managers have access to new systems almost daily and therefore they may grow too reliant on the scientific aspect of the position. To complete the list of five tips, revenue managers need to be bold in their actions, have a focus on the future, keep an eye on the economy, and consistently evaluate all of the systems currently in use.

Today, technology currently dominates much of what is done across all hotel industry disciplines with revenue management as a prime example. Sometimes it seems that the major brands release new revenue management tools and strategy directives on a daily basis. Revenue managers embrace new cutting edge systems and reports because they facilitate faster data analysis and the ability to sharpen strategies more quickly. However, a danger exists when the basics that have served us well and made us successful in the past are forgotten. Some new tools allow the properties to operate almost on auto-pilot. Removing human intuition from the process poses a real danger.

1. Building Personal Relationships

Building personal relationships is something that technology will never be able to replace. Build relationships with associates at the hotels within a portfolio, with key people at the brands, and with contacts at various online travel agencies (OTAs).

Begin by expanding relationships with managers and associates at individual properties. As revenue management continues to move to a more centralized system, the revenue management department can sometimes be located hundreds of miles away from the actual property it represents. Rapport must be built with the people on the front lines at each property because they are the ones who can help to implement a successful revenue management strategy.

The communication process begins at the top with the general manager and director of sales. Constant communication with property leaders ensures that everyone is on the same page and that the strategy is translated to the entire team. Not only is input from the property leadership team mandatory, but the collection of information and insights from other associates is important. The front desk handles the majority of the property's reservations and they are critical members of the team. If they do not have a complete understanding of revenue management, or if they do not have input into planning, they can be moving in the opposite direction from the strategies being put forth.

Choose a Social Network!

The social network you are looking for is not available.


Hotel Newswire Headlines Feed  

Court Williams
Brandon Billings
Bruce Seigel
Eileen McDargh
Sara Djubek
Sridhar Laveti
Sherri Merbach
Terence Ronson
Shayne Paddock
Matt Schwartz
Chris Green
Coming up in May 2019...

Eco-Friendly Practices: Corporate Social Responsibility

The hotel industry has undertaken a long-term effort to build more responsible and socially conscious businesses. What began with small efforts to reduce waste - such as paperless checkouts and refillable soap dispensers - has evolved into an international movement toward implementing sustainable development practices. In addition to establishing themselves as good corporate citizens, adopting eco-friendly practices is sound business for hotels. According to a recent report from Deloitte, 95% of business travelers believe the hotel industry should be undertaking “green” initiatives, and Millennials are twice as likely to support brands with strong management of environmental and social issues. Given these conclusions, hotels are continuing to innovate in the areas of environmental sustainability. For example, one leading hotel chain has designed special elevators that collect kinetic energy from the moving lift and in the process, they have reduced their energy consumption by 50%  over conventional elevators. Also, they installed an advanced air conditioning system which employs a magnetic mechanical system that makes them more energy efficient. Other hotels are installing Intelligent Building Systems which monitor and control temperatures in rooms, common areas and swimming pools, as well as ventilation and cold water systems. Some hotels are installing Electric Vehicle charging stations, planting rooftop gardens, implementing stringent recycling programs, and insisting on the use of biodegradable materials. Another trend is the creation of Green Teams within a hotel's operation that are tasked to implement earth-friendly practices and manage budgets for green projects. Some hotels have even gone so far as to curtail or eliminate room service, believing that keeping the kitchen open 24/7 isn't terribly sustainable. The May issue of the Hotel Business Review will document what some hotels are doing to integrate sustainable practices into their operations and how they are benefiting from them.