The hospitality market is changing drastically and in it the general managers of all hotels are becoming a key factor in the way the markets are linked and sales are made in this industry. The responsibilities that they offer include plenty of new components, like engineering, contract evaluation and many others. And since there are so many changes that appear in this particular industry, it’s crucial to ensure that the hotel managers are following 5 very important principles that will allow them to bring in a better set of results for their organization, while also bringing it up to speed unlike never before.
Accessing the right information
You can’t get a great revenue management unless you perform data analysis and collection properly. You will also need to collect data properly, which might take a little while in the long run. This makes it very easy to fully identify the fluctuations that appear in the demand. However, the revenue management software can bring in some nice help in this regard, offering the executives all the data they might need. Moreover, the hoteliers will also need to create a procedure that will help employees create a market segmentation standard that is uniform and professional.
Forecasting
If a hotel manages to forecast occupancy and demand properly, it can thrive. This is why it’s crucial to focus on forecasting because this allows the hotel GM to take the right decisions when it comes to the room rate, property maintenance and even staff allocation, among others. GMs also need to care about displacements, but this is something that can easily be solved with proper forecasting.
Segmentation mix positioning
The GM needs to fully understand which are the most profitable guests, because this will increase the overall revenue. Transaction system data needs to be integrated in it, and at the same time the data can be used in order to identify the most profitable guests, while also helping with the segmentation mix positioning. SWOT analysis can be very helpful in this regard and it has to be made, but graphs will also come in handy as well.
Measuring success
Measuring success can prove to be a little hard nowadays, since it has shifted from the RevPAR and ADR to more notions such as ProPAST and ProPOST. The GMs need to make sure that all the departments are using standard definitions, as this will bring in the best value for the business, which is the most important thing in the end. Hoteliers also need to follow some of the market metrics, such as RGI, ARI and MPI, because these are very important. The same thing can be said about identifying the right competitors on the market and then seeing what ideas can be used in order to counteract them.
Building the revenue management culture
The main idea here is to truly focus on tech, process and people because this is the way hotels will manage to bring in a strong culture and great results unlike never before. The best results will come from an executive buy-in from multiple departments.
In conclusion, all of these are things that the GMs need to know in order to create a good revenue management. It can be hard to understand and work with at first, but this is indeed a necessity and you do need it in order to acquire the best results on the market, especially in the travel industry!
