We follow upon our video from yesterday looking at whether Net Revenue is a challenge to embrace of just another pipedream for hoteliers.

In today’s video we are joined again by Vassilis Syropoulos , Founder and CEO of Juyo Analytics, one of our Expert Partners

As with our videos last week looking at Total Revenue Management, in this discussion we ask for his thoughts on Net Revenue and some of the points made by Karin, Amrita and Jens insights

We ask what his opinion is on the adoption of net revenue across the hotel industry. We discuss the complexities faced when trying to embrace net revenue and we touch on the evolution of the commercial role, where the finance team fits in and the emerging role of chief intelligence officer.

Really hope you enjoy the conversation.

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The majority of the customers, they are pushing us to go further in net revenue.

This is quite hot for the moment, because I think financial controllers are looking at conversion and conversion has been kind of difficult after COVID. You know, with inflation and, you know, all the costs went up and I think this year is going to be also very difficult because we don’t have double digit growth in revenue everywhere.

So everybody’s definitely focused on profit conversion. And I do believe that acquisition costs is the second biggest cost centre after payroll, right? So payroll and acquisition costs, really big ones, then all these acquisition costs, they are sitting there spread out in different systems.

Some of them, you get an invoice at the end of the month, some of them are your franchise fees, some of them are sitting in your meta search tool, some of them are with your digital agency, some of them you need to search through with invoices to find out how much your GDS connectivities. So that’s the second part is to sit down and say, wait a minute, let me list all these costs and let me find where all these costs are sitting.

So you’re faced with three layers of challenges and the challenge they have is the same challenges we have. So we’re in this together with them, right?

So we also have like, Okay, do you have pristine data? No. Okay, how can we help you to go towards getting close? Where is all your data? Oh, across all these different systems? Okay, we need to go about and connect all these different systems, because if we don’t have the connectivity, you know, we’re not going there very, very far. And then the third one, how do we build an engine that accounts for all of this, and then we can sort of put it all together? So it’s truly we have together on this? And, yeah, that’s, that’s the complexities and the challenges.

We as a company, we used to be a commercial platform, now we are more than a commercial platform, we have started connecting finance systems as well. And the way that we actually think about it, is to say, how do we organise that finance? You know, how do we organise the total spend around the customer? But how do we organise these costs also, all around the customer?

Essentially, how do we rebuild the p&l around the customer, I suppose, as opposed to build it, versus the hotel offers the inventory. So can we look at profitability, and seeing it from a different lens? Let’s say and will that give us hints in how we should influence this commercial performance?

Because at the end of the day, we’re not looking to make more revenue more revenue is great, but more profit is great. So it’s even greater.

You know, a lot of hotels have restaurants that don’t contribute anything to the bottom line, they are there because they need to be there. You know, and they are a cost centre as opposed to a revenue centre. And that article was saying, you know, the median f&b doesn’t work and and I think all the companies now need to find profitability everywhere, but you don’t have too many choices – close it down, rent it out to someone else, or start creating something for a restaurant that makes sense or transform your space into something else that is producing revenue and is adding to profit as opposed to eat the profit that you’re doing in terms of rooms.

Yeah, and you know, if you do that, then you need to start looking at some data and to see how you’re performing it at the end of the day.

WATCH NEXT (A few of our other videos)




00:52 What is the general trend towards adoption of Net Revenue
04:37 What are the complexities and challenges faced embracing Net Revenue
08:18 How are departments and roles evolving to embrace this shift
10:54 Where does the Finance team fit into the equation
15:35 It’s not just rooms, don’t forget your F&B
17:06 Further videos and Subscribe