Revenue managers who play a pivotal role in demand generation will transform their careers
The coronavirus pandemic has created one of the most turbulent periods in the history of the hotel sector.
But as properties and chains attempt to recover from the devastating impact of having far fewer numbers of guests, many are considering new strategies and models across their businesses.
Central to this new awakening is understanding how different elements of hotel operations - distribution, revenue management and marketing - can cease to operate in silos from a technology perspective.
There is an argument that with integrating these platforms, and their associated data sets, revenue management can be established as the core of hotel operations.
PhocusWire spoke to Dori Stein (CEO at Fornova, a leading hotel business intelligence solutions provider) and Ludovic Cacciapaglia (hospitality distribution and e-commerce specialist and former head of global distribution at Shangri-La Hotels and Resorts) about the evolving role of the revenue manager and why smart thinking and a detailed understanding of new processes can make a significant difference to a property's distribution strategy.
How can the Revenue Manager role be positioned at the core of the hotel?
Stein:
In a period like this, a revenue manager has to provide more value to everyone in the hotel above forecasting and pricing. There is a clear opportunity for them to step up into the role of a trusted strategic advisor - working in partnership with distribution and marketing colleagues to guide the hotel through the current crisis.
Central to the role is acting as a gatekeeper to both internal and external data and being able to communicate with all stakeholders in a way that's understood. A future-focused revenue manager should be positioning themselves at the core of their property and providing additional value by getting involved with generating revenue directly and indirectly.
At a time when there is such low occupancy, it is not enough to forecast and communicate room rates - revenue managers must get acquainted with how the hotel is planning to generate revenue and help facilitate the way through. For example, they need to understand if the main source of demand is direct or from online travel agencies, the main types of guests that are coming to the destination and how they plan to attract them.
To secure demand now, colleagues in distribution and marketing need to be selling the right hotel room, to the right customer, at the right time, for the right price, via the right channel, with the best cost efficiency.
To play a pivotal role, revenue managers need to be central in the creation of all of those offerings.
