monopoly hotel pieces on top of increasing piles of coins illustrating how outdated management approaches can impact not only revenue management but also hotel staff

We explore how two general managers interact with their revenue managers and how their different approaches affect their teams and the overall performance of their hotels.

NB: This is an article from Demand Calendar

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It’s a story of tradition versus innovation, control versus empowerment, and the significant impact these attitudes have on individuals and organizations. Let the story begin.

Chapter 1: The Two Hotels

In the bustling city of Metroville, two hotels stood just blocks apart: The Imperial Hotel and Hotel Solstice. Both establishments offered luxurious accommodations and vied for the top spot in the competitive market. However, their leadership styles and approaches to revenue management set them on very different paths.

Chapter 2: The Imperial Hotel’s Struggle

General Manager – Mr. Edward Thompson

At The Imperial Hotel, General Manager Mr. Edward Thompson ruled with an iron fist. A staunch traditionalist in his late fifties, he believed his decades of experience meant he knew best in all matters. He was authoritarian, dismissive of others’ ideas, and rarely trusted his staff to make decisions without his approval.

  • Authoritarian Leadership

Micromanagement: Insisted on overseeing even minor decisions.
Know-It-All Attitude: Dismissed suggestions from staff, believing he had all the answers.
Lack of Trust: Rarely delegated responsibilities, leading to bottlenecks.
Poor Treatment of Staff: Often criticized employees publicly, creating a culture of fear.

Revenue Manager – Sarah Collins

Sarah, a talented and dedicated revenue manager, struggled under Mr. Thompson’s leadership. Despite her expertise and passion for data-driven strategies, she was reduced to a mere task executor.

  • Daily Struggles

Manual Data Compilation: Spent hours collecting data from disparate systems using Excel.
Routine Reporting: Prepared reports that Mr. Thompson rarely read.
Limited Authority: Prices are not allowed to be adjusted without explicit approval.
Long Working Hours: Overworked and underappreciated, with little time for strategic thinking.

  • Challenges Faced

Stifled Innovation: Sarah’s ideas for adopting modern revenue management tools were consistently shut down.
Inefficient Processes: Reliance on manual tasks led to errors and missed opportunities.
Low Morale: The oppressive environment resulted in high staff turnover and low motivation.

Relationship with the GM

Mr. Thompson viewed Sarah as just another employee to command, often disregarding her expertise. When she presented data suggesting a need for strategic changes, he would retort, “I’ve been in this industry longer than you’ve been alive. Stick to your spreadsheets and leave the decisions to me.”

Read the full article at Demand Calendar