Revenue management is never an easy job, but the job is considerably tougher for independent hotels, according to sources.
Without the marketing power of brands or the ever-more sophisticated revenue-management tools provided by the larger companies in the hotel industry, revenue managers at independent hotels are tasked to not just set rates but find creative ways to drive demand and track performance.
Kim Snow, VP of revenue strategy at Interstate Hotels & Resorts, said revenue leaders for independent properties have to showcase a diverse set of skills in order to be successful.
“Revenue leaders must be excellent communicators, have firsthand knowledge of the transient and group sales processes and collaborate with their marketing, finance, (food and beverage) and operations partners,” she said via an email interview.
Snow noted that independent hoteliers have to be realistic about where they stand in the larger travel ecosystem and do their best to make the best of it.
“In the independent space, a hotel’s voice can’t be heard above brand and online travel agencies’ million-dollar marketing efforts, which means we must leverage the experts on our team and be adept at navigating marketing and digital initiatives, as well,” she said.
Collaboration with marketing
Linda Gulrajani, VP of revenue strategy and distribution at Marcus Hotels & Resorts, said one of the key skills for a revenue manager at an independent hotel is the ability to work closely with the marketing team on property, particularly because the hotel won’t have the corporate-level marketing muscle of a brand to lean on.
“Ultimately, revenue management is reliant on somebody to generate demand,” she said.
Gilbert Arredondo, divisional VP of revenue for the independent and luxury division at Remington Hotels & Resorts, said that can be a matter of finding the right niches to market to for an individual property. He said finding those opportunities requires constant collaboration, which is a stark difference from branded properties.
“In the brand world, (revenue managers) can be more siloed,” he said. “Revenue management can do what revenue management does, and they can let sales do what they do.”
