Six things every Revenue Manager MUST know about their hotel in order to make an impact23rd February 2017
Make this year even better than the last with some expert advice from the hotel asset management specialists at Michels & Taylor
Once upon a time, Revenue Managers were simply concerned with the number of reservations being made per month. They would compile data into spreadsheets, identify trends and make decisions about hotel rates based on bookings alone. Nowadays, however, revenue managers hold incredibly complex responsibilities that involve far more than having a good working knowledge of booking systems and Excel.
In order to effectively optimise a hotel’s income in the current climate, your Revenue Manager needs to have a good understanding of:
When teams meet to discuss plans, they tend to make decisions based on their own interests rather than those of the target consumer – customer profiling is a great way to combat this.
By breaking down customers into groups and providing each selection with a ‘persona’, including name, age, gender and interests, you can ask questions such as, ‘Which features of our hotel will help persona 1 to achieve their goal?’. This will ensure you are making decisions about a particular service based on a typical user’s perspective rather than your own. Doing this will result in a product or service which better meets the customer’s needs and expectations and, as a result, is far more likely to succeed.
The Customer Journey
Understanding the customer journey from arrival to departure is key to the success of a hotel. Revenue managers should be able to map out what their customers do throughout their stay in order to make sure their journey can be improved and built upon. This way, the customer is more likely to choose their property over their competitor’s time and time again.
The Services on Offer
The Revenue Manager needs to know which products and services are available at the hotel in order to better understand how value can be added to a stay. These can then be offered to guests prior to their stay and promoted by staff at the hotel for a simple and inexpensive way to effectively boost revenue.
The Operations Side of the Business
In order to maximise assets and create new streams of revenue, the revenue manager needs to understand the operational logistics of a hotel in order to better recognise how to adapt the hotel’s services and generate more revenue.
The Strengths of the Hotel
Knowing the hotel’s core and distinctive competencies means that a revenue manager knows which buttons to press when the time is right. However, in order to play on a property’s strengths, you first need to know what they actually are.
Revenue Managers shouldn’t focus solely on their own property. Instead, they need a good idea of what their competitor’s resources and competencies are in order to effectively compete with them and better their own.
If you would like some further advice on how to better manage your hotel revenue, call us on 020 8905 2500 to talk to one of our consultants, email us or browse our site to find out more about our hotel asset management.