person looking a swirly lines and question marks reflecting biggest problems for Revenue Managers

Even heroes face obstacles. For hotel revenue managers, a few persistent challenges can slow them down, preventing them from focusing on broader strategies that maximize revenue, profitability, and guest satisfaction.

NB: This is an article from Demand Calendar

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We highlight three significant hurdles they face, providing insights into why these challenges exist and how revenue managers can position themselves and their hotels for success. By overcoming these roadblocks, revenue managers can unleash their full potential and become the strategic powerhouse every hotel needs to thrive.

1. Wrestling with Inconsistent (and Overwhelming) Data

Problem in Focus

The first significant obstacle revenue managers grapple with is the sheer volume of data flowing in from multiple, often disjointed, sources – Property Management Systems (PMS), OTAs, market intelligence platforms, internal spreadsheets, and more. Each source may record and label data differently, leaving revenue managers to play detective as they reconcile mismatches, duplicates, and outright errors. The end goal is to create one reliable source of truth – but it can feel like chasing a moving target.

Adding to the complexity, no one else seems to value data quality quite like the revenue manager does. Overworked staff often take shortcuts or neglect proper data entry due to time pressures and minimal training. Many hotels also run siloed systems that don’t integrate seamlessly, meaning guest reservations, folios, and other transactional data are rarely linked. As a result, it becomes nearly impossible to get a complete picture of guest spending and behavior.

Why It’s Frustrating

  • High Stakes: When key pieces of data are missing, duplicated, or inaccurate, rate and distribution decisions suffer. A single oversight can throw off a hotel’s entire pricing strategy, causing lost revenue or misaligned rates.
  • Time Sink: Hours spent cleaning up data in spreadsheets and cross-referencing reports are hours not spent on big-picture strategies like analyzing demand patterns, optimizing distribution channels, or developing upselling programs.
  • Pressure to Act Quickly: In the fast-paced world of hospitality, timing is everything. If data quality issues delay critical insights, you could miss the perfect moment for a targeted promotion or a lucrative rate adjustment.
  • Lack of Buy-In: The front desk, reservations, and other hotel staff may not fully appreciate how vital accurate data is. Without proper training and incentives, they’re prone to inputting incomplete information or skipping steps—further complicating data integrity.
  • System Silos: Disconnected or outdated systems prevent a holistic view of guest behavior. If reservations, point-of-sale transactions, and loyalty data remain in separate silos, uncovering total spending per guest or linking booking patterns to ancillary purchases becomes a painstaking manual chore.

The Strategic Imperative

  • Data Consolidation Tools: Implement platforms that automatically pull data from all key systems, standardize it, and flag inconsistencies. This frees up time for analysis rather than manual cleanup.
  • Cross-Functional Training: Provide ongoing training sessions for frontline staff, emphasizing why accurate data matters. Consider incentives or simple QA processes that reward correct data entry.
  • Process Alignment: Work with department heads to create SOPs that uphold data integrity, ensuring each step (from booking to checkout) captures essential information.
  • Integrated Technology: Whenever possible, invest in solutions that eliminate silos by linking guest profiles across reservations, folios, and other transactional platforms. This unified view is the foundation of actionable analytics.

Big Takeaway

For a revenue manager, data is currency. When that currency is tarnished by inaccuracies or departmental silos, its value plummets. By investing in integration-focused technology, engaging staff in data stewardship, and establishing clear procedures, revenue managers can transform a messy data landscape into an analytical goldmine – empowering them to make swift, informed decisions that directly drive profitability.

2. Attracting the Most Profitable Guests

Problem in Focus

For many hotels, success is measured not just by heads in beds but by maximizing profitability per guest. While a high occupancy rate might look good on paper, relying heavily on OTAs and other third-party channels can erode margins through commissions and fees. Compounding the issue, many hotels don’t have a clear picture of which guests drive the total revenue, including their potential for ancillary spending on dining, spa services, and more. Segmentations often hinge on broad categories – leisure vs. corporate, transient vs. group – without diving into which specific segments or personas are truly lucrative.

Read the full article at Demand Calendar