Is revenue management stuck in a rut?
— 11 experts shared their view
Recently the question has been asked at events, in social media posts and industry articles if revenue management is stuck in a rut. The authors assert that revenue management has not really advanced in the last 10 years and revenue managers are not doing anything differently than in the past. What is your opinion of the state of revenue management in 2020?
We believe that this is “The Golden Age” of Revenue Management, with revenue leaders having access to analytics, automation and revenue science at never before seen levels of sophistication. Just in the last few years we have seen the development of new pricing methodologies which are removing the constraints between rate and room products. We have seen the incorporation of ever more granular data points, including reputation, market demand and competitor rates. And finally, we have seen the infusion of revenue science into new areas, including meeting and events.
Total revenue management is now being introduced and adopted at more and more hotel companies and in the very near future we will see the expansion of revenue management, giving both Hotel Operational leaders and Corporate Commercial leaders unparalleled access to sophisticated revenue science and real time, automated decision making power. Far from being stuck in a rut, it has never been more exciting to be a revenue leader.