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Remote/Centralized vs. On-Property Revenue Management

Remote/Centralized vs. On-Property Revenue Management

Over the years Revenue Management has rapidly evolved as a science and an art. Effective application of Revenue Management principles proactively drive sustainable revenue optimization, superior competitive performance and long-term profitability.

NB: This is an article from Puneet Mahindroo, Founder & CEO of Rev-Mantra

Therefore, more and more hotels have invested in establishing a strong revenue culture that aligns people, process, technology. However, I am always posed a question – what is the best approach to lead and this important role – a centralized/remote service or a dedicated on-property revenue manager?

While all the above options are widely being exercised today, it really depends on several factors that influence this decision. It is also important to understand that while technology solutions have made the process much simpler and efficient; the complexity and application of Revenue Management is also expanding beyond the realm of just room Revenue Management – now expanding to function space, spa, restaurants/bars and not to forget distribution optimization.

Therefore, while the answer is not as straight-forward; here is a tool to help you determine the best option that applies top your nature of business.

As mentioned earlier there no straight forward solution as there are many benefits and considerations associated with either approach. Determining the appropriate Revenue Management deployment for your hotel begins with knowing the objectives you’re seeking to accomplish, and the level of services you desire from this deployment.

At Rev-Mantra Pte. Ltd. we use multiple methods for establishing the best structure for a hotel or hotel company. Sometimes we have observed that a blended approach towards the deployment works best. In other cases, a singular approach is most favourable. Irrespective, of the approach that is being pursued, the underlying objective should be to operate in an efficient environment that fosters collaboration and innovation with highly skilled revenue management talent, all resulting in optimum revenue performance for your hotel.

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