Not too long ago we thought the future of Revenue Management would be more data; faster processing capability; more revenue streams optimized; and more properties managed by one revenue professional. Now that the second decade of the 21st century is nearing its final year we can see that the "more" and "faster" will give way to something slightly different.
Airbnb successfully delivers relevant and quantifiable advantages in saving time, defeating distance and generally finding a way to offer a solution for a "pain point" be it constrained travel budget or a preference for a given location.
There is a new GM appointed to the hotel. He is keen to get to know his team as fast as possible. He has an idea: he goes around and asks the same question from each manager. Based on their answers, he figures he can see what expectations would be realistic.
It is fair to say that Revenue Management in the hotel industry has arrived. It has become part of the mainstream over the years: we see more and more articles written about the various aspects of Revenue Management both in the print and electronic media; it became a standard agenda item at association meetings, conferences, symposiums and presentations at trade shows; colleges and universities are rolling out courses on it and hotel executives don't have to be persuaded any longer that Revenue Management adds value to their business– it is accepted as evident by now.
We all make tactical room rate adjustments on a daily basis. We need higher occupancy, increased cash-flow, plus show the owners how hard we tried. We also must be sure these tactical decisions are in alignment with our strategic objectives.