In the last part of our 3 part series, we look at 6 factors that get in the way of a revenue manager’s data-driven decision making. Data-killers don’t always look dramatic or drastic – in fact, they’re often part of your everyday routine.
Those day to day decisions in the hotel are probably having a bigger influence on revenue success than you might think.
This isn’t an exhaustive guide, but it gives you a good look at the factors that can lead to decisions which spell disaster! Don’t let your hotel’s revenue management strategy be decided on a whim, or out of simple convenience.
For a look at all the ways Revenue Managers get it right, check out the first and second parts of our series, 6 Ways Revenue Managers Use Data to Make Their Hotel Smarter and 5 Customer Concerns Revenue Managers Need to Address.
Here’s the flip side of all that organization and logic: the reasons that revenue managers, general managers and others start ignoring the data and making decisions based on other, less profitable factors.
Make a note of these factors, and try to be conscious of them when you’re making big decisions!
6 Factors that Kill Data-Driven Decision Making
#1: The Path of Least Resistance
When time is short, it’s easy to default to a quick fix. However, short term benefits tend to be just that – short. Unless it’s an emergency, resist the urge to take the shortcut and stick to what the data recommends.
#2: Other Voices
Your team might be fantastic, completely on board with your carefully-crafted revenue strategy and in full understanding that you’re all working towards the same goal. However, there may be miscommunication or hesitations that aren’t so productive.
For example, a financial controller may look at marketing spend and commission as items that can be reduced, while you feel the data shows that every dollar is counting towards bookings. A general manager may be more focused on ‘filling the hotel’ than focusing on any particular channel, and may encourage you falter on your rate strategy – be strong!