Hi, welcome to another Expert Insights discussion

Today we look at Total Revenue Management – Yes, that topic that which has been discussed for years and years but still remains a dream for most.

In today’s discussion we actually look at the reality of the challenge and why it’s easier to talk about it than to do it. To share their insights and experience, we are joined by:

NB: Juyo Analytics are one of our Expert Partners

We ask is the industry now, crystal clear, about what total revenue management actually means?
Using corporate business as an example, our guests outline why it is so challenging and why it isn’t really being done.

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And finally, how can technology help, or is it a hindrance, to achieving total revenue management.

Really hope you enjoy the conversation.

WATCH NEXT (A few of our other videos)

RECORDING SOUNDBITES:

Karin Van Rhee
If we start looking at that specific account again, and we start looking at not only what that account is produced the room revenue, but what might they have spent in the bar, right? If I start adding that additional element, it might not be your corporate account that has, let’s say, the highest average rate that brings you most profit or total revenue. But it might well be that it’s an account that has much lower average rates, maybe less volume, but they spend a lot in the bar, or every week, when they come, they have dinner in the restaurant. So if we already very pragmatically, start looking at total production of an account, looking at total revenue management, having the data available there, I think that’s just already a very good step forward and starting to look at total revenue management.

Amrita Makkar
You do tend to look at the corporate accounts, and some of them are still static, they haven’t moved to the dynamic pricing yet. And you’re like, are they really worth it? Or could you replace them with a higher ADR transient? But then it is about looking at you know, how much meeting and events revenue are either bringing? How much are they actually spending in the in the restaurant? So I think I absolutely agree with you. So corporates, I think we are getting there for sure. You know, I think we are starting to think about it as a total revenue segment, and what else they’re bringing in. But to your point, I think we need to start segmenting our guests in buckets and see – somebody from booking.com could be just here for a night in and out. And that doesn’t bring you any any incremental revenue at all.

Jens Egemalm
What I’m sort of suspecting is that a lot of the incentives around total revenue hasn’t really been there for many of the players. Like if you take a let’s say, a lot of the branded properties that potentially are a franchise or management agreement where total revenue is actually not that interesting. So it hasn’t been interesting to potentially to some of the big brands to even look at that. Because, if a contract is based on room revenue, you know, I don’t really care what happens once what happens at the property. So there’s some things I think that have been driving this evolution

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VIDEO TIMELINE:

01:07 Total Revenue Management – do we have a crystal clear definition
06:11 Why is Total Revenue Management so challenging
10:14 Where can technology help in the drive to achieve Total Revenue Management
14:58 Further video and subscribe