In today’s fast paced hospitality industry, disciplines such as revenue management, digital marketing and distribution are persistently evolving and converging and this dynamically changing environment places a long list of demands on hotels. New advertising models, colossal ad budgets and a prerequisite for interesting content in bulk all contribute to the challenge of driving direct bookings to the hotel’s brand website.
RM is also becoming more strategic. Today, it encompasses multiple revenue generation routes that span pricing, forecasting, budgeting and marketing. This new, more complex hotel RM landscape is throwing up a few hurdles such as:
- A lack of competent revenue managers
- Increased competition
- Supply constraints
- Pressure to cut costs from proprietors.
Hoteliers have to deploy new skills in management, performance measurement and technologies to overcome these challenges. Additionally, an RM has to accomplish two critical tasks in order to maximize chain revenue:
- Develop effective rates and strategies to boost the hotel’s top-line
- Create and maintain an RM culture.
Increasingly, pragmatic technology and tools can be applied to stabilize revenue streams and optimize rates. Today hoteliers can call on robust technology like big data analytics to unleash new data driven insights that enable them to build and maintain strong customer relationships. More and more, technology sits at the heart of any agile strategy aiming to drive great ROI.