Implementing a revenue strategy comes with a unique set of challenges. Hotels need to remember why they are focusing on optimising each channel, and how direct bookings reduce costs and produce a higher lifetime value for each guest.
In the second article in our Challenges for Independent Hotels series, we cover difficulties often faced by revenue managers who are trying to implement robust revenue strategies.
These difficulties come from two directions: the role and the hotel, and externally from the market environment.
Here’s a look at both sets of challenges, and ways to overcome them.
Challenges from Within the Role
#1: Expansive skill set needed:
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.
So, getting the right skills as an RM is the first challenge. You may already be an expert, with 10+ years in the field – or you may have just swapped from another department, and don’t have your feet under you quite yet.
Either way, training will give you the fundamentals you need and 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.
The most famous Revenue Management program is probably Cornell’s Certificate program, which you can read about here. Alternatively, you might consider a local course.
Whatever you need, invest in the training needed for quality revenue management. It’s the fundamental you need before you’ll be able to successfully manage implementing a revenue strategy.
#2: Technology that isn’t always up to dealing with multiple online channels:
Technology – or lack thereof – has become a major barrier for many revenue managers today, especially ones at smaller or independent properties.
Many independent hotels, even those with expert RMs, are facing serious, expensive technology hurdles in the race to keep up.