Revenue management in the hospitality sector is experiencing one of its largest shifts since the approach was first developed by British Airways in the 1970s. Big data technology combined with a sustained period of top-line growth has forced hotels to revisit how they optimize both revenue and profit.
This brings both opportunities for a hotel’s Revenue Manager to step-up and become a trusted strategic advisor to both the General Manager and hotel owner or Chief Operating Officer while also facilitating better coordination between sales, marketing, finance, and operations.
Traditionally, the Revenue Manager has been overlooked as a strategic partner or for leadership positions. While things are changing, their lack of formal financial and analytical qualifications has seen them placed in a lower pay bracket than their General Manager or Financial Manager peers.
Now, with the hospitality industry elevating the importance of data to their business success, switched-on Revenue Managers can demonstrate the value their skills set delivers.
Although that all sounds great in theory, the reality can be very different. By and large, smaller and mid-sized chains are a step-behind managing their data effectively compared to major brands. Property, revenue, and guest data are often stored in spreadsheets or siloed systems that require time and effort to collate and analyze – making hotels slower to respond to opportunities to optimize net RevPAR and GOPPAR and making it more difficult to compete with larger chains.
Time spent collating and verifying data from these different sources makes identifying opportunities to improve performance more challenging and slower – limiting opportunities to build effective relationships with other important teams such as sales, marketing and operations and also making it difficult to spot trends and effectively forecast.
Data into intelligence
Business intelligence tools are helping to level the playing field - providing an effective way for Revenue Managers and hotel teams to gain a full picture of activity by combining data from their separate systems into one, trusted stream of highly visualized data.
With data now more accessible and easier to analyze revenue mangers can begin to position themselves as strategic data gatekeepers working closely with the General Manager and owner or Chief Operating Officer to deliver a data-driven strategy and culture where all teams are aligned and focused on clear goals based on the same data.
The Revenue Manager can also take a central role in identifying opportunities to improve performance and optimize revenue and profit throughout the hotel – not only each room but in other areas too such as food and beverage, the spa or casino.
Armed with actionable insights, and with time-consuming low-value tasks reduced or eliminated Revenue Managers will be able to develop their role to become a central player in their hotel’s strategic success.
Business intelligence solutions are proving to be an effective tool for aligning revenue and marketing teams. Find out more in our blog here.