Implementing a revenue strategy comes with a unique set of challenges, on top of the existing challenges facing hotels at the moment due to the colossal impact of the pandemic.
NB: This is an article from Net Affinity
Hotels need to remember why they are optimising each channel, and how direct bookings reduce costs and produce a higher lifetime value for each guest.
In this article, we will cover difficulties often faced by revenue managers who are trying to implement robust revenue strategies.
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Difficulty tends to come from two directions: from the role and the hotel (internal), and from the market environment (external).
Here is a look at both sets of challenges, and tips for overcoming them.
Challenges from Within the Role
1. Developing an expansive skillset
The revenue management role requires a set of specialized skills and knowledge. If you don’t have that expansive skill set, putting together and executing a successful strategy is going to be difficult.
Developing the right skills as an RM is the first challenge. You may already be an expert, with 10+ years in the field – or maybe you’ve just swapped from another department, and don’t have your feet under you quite yet. Perhaps you need to refresh your knowledge after dealing with significantly less activity over the last 14 months.
Either way, training, upskilling and refreshing your knowledge will provide you with the fundamentals you need, and will keep you up to date on the latest best practices. This might mean night classes, mentoring under a more experienced RM, or just reading up.
If you’re interested in courses, check out the Certified Revenue Management Executive (CRME) from the HSMAI. Alternatively, you might want to consider this course facilitated by DIT.
It’s more important than ever to invest in the training you need for a high level of revenue management. If you want to implement a strong revenue strategy, a solid knowledge and skillset is your foundation.
2. Technology that isn’t always up to dealing with multiple online channels
Technology – or lack thereof – is a common barrier for many revenue managers today, especially those working with smaller or independent properties.
Many independent hotels, even those with expert RMs, are facing serious and expensive technology hurdles in the race to keep up.
Issues can range from having different technology systems that may not communicate well with one another, to not securing the budgets necessary for investing in the technology your hotel needs.
Without the right technology, RMs can be left staring down the barrel at hours of spreadsheets each day just to keep up with their online channels. The job can be overly, unnecessarily manual without the right tools.
Implementing a sophisticated revenue strategy on multiple online channels absolutely requires an investment in technology. If there are difficulties finding the right technology, it can hinder your progress, and now is not the time for any additional barriers between you and potential bookers. Try to make as compelling a case as possible to find and purchase the right technology for your hotel.
Approach it in a logical manner by outlining the time spent per day on manual tasks, showing examples of what other kinds of work could be accomplished if the manual admin tasks weren’t taking up as many hours. Include work in relation to pricing and inventory per channel, detailed forecasting and analysing marketing segments.
We’ve talked about the tech stack and the benefits of automated, well integrated technology quite a lot: learn more here, here and here.
3. Communication between departments
Communication is often a major hurdle when you’re trying to put an intelligent strategy into place.
General managers or members of your sales and marketing team may have varying, siloed goals that don’t necessarily align with yours in revenue, or you maybe you haven’t discussed your goals and challenges together. Try and reach out to break down any potential barriers to open communication, and give yourselves an opportunity to streamline goals for the benefit of your business.
Where do you, as revenue manager, sit within the company and communication structures of your hotel? This ultimately ties back to how well your strategy is defined, and how well team members across the company collaborate together.
