The Revenue Manager's Role in Market Segmentation
Mastering the Art of Mix and Mingle
By Paula Macdonald Director of Communications, McKibbon Hotel Management, Inc. | September 29, 2013
Co-authored by Inger Oliver, Director of Revenue Management, McKibbon Hotel Management, Inc.
Over the last several years, the role of the revenue manager in the fiscal success of a hotel has taken a much more creative and involved approach. In the past, revenue management was less a carefully choreographed dance of technology and business decision-making and more often a game of chance based on experience and intuition. Today, with the emergence of many new forecasting tools and technological advances, the process of revenue management has become more creative, more precise and much more technical.
For the revenue manager who manages a branded hotel, many real-time tools are provided to predict and forecast, streamlining and simplifying the process for those who are responsible for multiple properties, as in the case of many management companies. Independent hoteliers have the ability to contract professional outsourced revenue management services, providing them with many of the number crunching and data analysis tools that the larger brands have to offer.
Going beyond the tools provided by the hotel brands, more progressive management companies have incorporated spreadsheet gurus as valuable members of their team, who can further manipulate and examine the data to provide detailed forecasts of a hotel's past and present mix of business. The result is a veritable fete of data and information that the revenue manager must assimilate and blend to arrive at just the right mix of business to ensure growth in peak times and hold the line during down periods.
It Takes Tools to Tango
Today's hospitality industry has become more reliant upon the technology that we have at our fingertips to provide us with the data needed to make better-informed decisions. It is too overwhelming to accomplish without these automated systems, and the days of playing revenue management guessing games are far behind us in today's competitive business market.