Since Revenue Management has not been around for that long, many organizations are still working on creating a Winning Revenue Management Culture. Hotels will only start seeing bottom line results when the Revenue Management mentality becomes systemic and second nature to all of the employees in the organization.
Everyone involved should have a common goal, no misunderstandings
But how can an establishment tell if their Revenue Strategy is top of mind within their organization? Well here are some telltale signs that you can watch out for:
Telltale signs of a great Revenue Management Culture
Alignment between Sales, Marketing and RM
Upsell, upsell upsell
Telltale signs a lot can be improved in your hotel’s Revenue Management Culture
People reach out to Revenue Manager a lot
Internal competition: a lot of the time, Revenue Management is more a science than it is a feeling, so if you notice internal conflicts, something must be going wrong. For example, about whether or not a wholesaler contract should be prolonged when considering the profit and RevPar of the hotel. If the Revenue Manager conducts a displacement analysis and sees the negative effects displaced room nights of a higher paying segment have on the RevPar. The Sales team should understand and try to capture business that brings more revenue.
Complementing strategy with technology
Your Revenue Management Strategy should be complemented with the right tools. Without the right tools it is difficult to share information, and without sharing information it is difficult to be on the same page. There are many tools that a hotel can adopt, but in order of importance; these are the first you should look out for.
Optimise data in PMS
Purchase a RMS
Connect RMS with channel manager
Purchase a channel manager
To wrap up, check with your staff how top of mind Revenue Management is to them, and if you are not confident you are performing at your best, educate and train your staff. Don’t forget to translate your next year’s budget and Revenue Strategy to all departments in your hotel and get them involved.