Consumer protection in online marketing is a hot topic these days.
Consumer awareness is a big win in the hospitality industry, where deceptive practices have been going on for years, and companies have been trying to battle individually — to no avail.
A large part of this discussion has been the increasing cost of customer acquisition, and for major reform to take place brands will need to work collaboratively to find a solution.
Hospitality revenue managers have had to evolve with e-commerce and e-distribution practices.
The importance of their role has increased, and there has been a constant evolution of the discipline of revenue management in this ever-challenging marketplace.
It hasn’t gone unnoticed. Jim Abrahamson, CEO of Interstate Hotels & Resorts, told a group of industry chief revenue officers this past year at the annual HSMAI roundtable that the cost of revenue growth is the most crucial concern for the business.
He also said brands would need to work collaboratively to find industry solutions.
David Kong, president and CEO of Best Western International, told the same HSMAI group the biggest challenge in distribution costs is related to OTAs and the inability to accurately forecast these for the future.
Revenue management used to be about optimizing revenue when times were good, but now the role is crucial in all markets in order to drive business and optimize rates on inventory at all times.
The discipline of revenue management has become much more sophisticated. Price optimizing is better. Even midscale companies are embracing revenue management.
Revenue management will continue to contribute to the success of a company by providing analytics to marketing, and it will be a huge advantage to use all the data available.
Original contribution by Bob Gilbert via Hotels Mag
