Welcome to another of our Expert Insights discussions.
Today’s conversation is looking at the various strengths and weaknesses of a Revenue Manager and the strengths and weaknesses of a Revenue Management System (RMS)
We often hear the discussion around technology replacing the human but, is there actually a choice to be made between having a revenue manager or revenue technology? Surely the ideal scenario would be to have both or maybe, the answer is, it depends.
Veit has put some thoughts together around a SWOT Analysis on the Revenue Manager and RMS technology.
You can see a summary of the points below 👇🏻
Really hope you enjoy the conversation 👍🏻
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🎞 VIDEO CHAPTERS
00:56 Guest welcome and topic intro
01:53 Strengths of the Revenue Manager
05:54 Strengths of RMS Technology
08:06 Weaknesses of Revenue Manager
10:09 Weaknesses of RMS Technology
12:48 Opportunities of the Revenue Manager
15:18 Opportunities of RMS Technology
17:01 Threats of Revenue Manager
19:21 Threats of RMS Technology
30:17 Further videos and subscriber link
Below is a summary of the points highlighted:
Human Efforts in Hotel Revenue Management
- Intuition & Experience: Humans can rely on years of experience and intuition to make decisions that may not be evident in the data.
- Relationship Building: Humans can build and maintain relationships with clients, partners, and stakeholders, which can be crucial for business negotiations and partnerships.
- Flexibility: Ability to adapt to unique situations or unforeseen challenges that may not be programmed into technology.
- Understanding of Context: Humans can understand the broader context, such as cultural nuances, historical events, or local happenings, which might affect revenue.
- Prone to Errors: Manual calculations and decisions can lead to errors.
- Bias: Decisions might be influenced by personal biases or emotions.
- Limited Data Processing: Humans cannot process vast amounts of data as quickly as technology.
- Time Constraints: Manual tasks can be time-consuming.
- Training & Development: Continuous training can enhance skills and adapt to the changing landscape of the hotel industry.
- Collaboration with Technology: Using technology as a tool while leveraging human strengths can optimize results.
- Technological Replacement: Automation and advanced software solutions might replace traditional human roles.
- Evolving Industry Trends: Rapid changes in the hotel industry might require constant upskilling.
Technological Efforts in Hotel Revenue Management
- Data Analysis: Technology can process and analyze vast amounts of data quickly.
- Accuracy: Reduced risk of errors in calculations and data-driven decisions.
- Automation: Routine tasks can be automated, freeing up time for strategic planning.
- Scalability: Technology solutions can be scaled up or down based on the hotel’s needs.
- Lack of Intuition: Technology relies solely on data and cannot make intuitive decisions.
- Implementation Costs: High initial costs for implementing advanced revenue management systems.
- Dependency: Over-reliance on technology can be problematic if systems fail.
- Complexity: Some systems might be complex and require training to use effectively.
- Integration with Other Systems: Technology can be integrated with other hotel management systems for seamless operations.
- AI & Machine Learning: Advanced algorithms can predict trends and optimize pricing strategies.
- Cloud Solutions: Cloud-based systems can offer flexibility and remote access to data.
- Cybersecurity Risks: Data breaches can compromise sensitive information.
- Rapid Technological Changes: Constant evolution of technology might require frequent updates and changes.
- Loss of Human Touch: Over-reliance on technology might lead to a lack of personal touch in customer interactions.