Revenue management and marketing were at each other’s throats during the hotel slump. Now that the massive downturn has become history, revenue management must take on new and broader roles. Directors of revenue management must align their thinking and tactics to avenues that cover down times.
There are three things that help revenue management get started and do things to produce more profit.
1) Coordinate with other functions
Revenue management can no longer afford to be a stand alone function. The function never was on its own. The slump caused by the recession has made the necessity of higher levels of collaboration with marketing apparent.
A necessary part of the change is learning to understand the needs of other functions in the operation. This requires some learning on the part of revenue management and marketing as well. The two functions must understand the goals and functional language that each uses.
This coordination of functions will allow an organization to respond more rapidly to revenue producing opportunities. When marketing sees a trend then resources can be allocated to the section of the country or part of the world that is looking for your operation.
The simple idea is to cooperate to maintain revenue goals. This change will entail a change in function and a broadening in the scope of the duties of revenue management.
2) Target marketing dollars
Social media and Google provide a world of opportunity for increasing revenue.
The purchase of the right words at the right time is the key to higher occupancy rates and branding. Revenue managers must understand the tools that marketing uses. This understanding can lead to the allocation of funding for Google Ad Words that produce the highest returns possible.
Marketing can target the hot spots that are looking at your property. A quick response from revenue management can provide the funds that capitalize on a blip that may not last more than a few weeks.
A part of targeted marketing is an understanding of the economies of your targeted clients. The relative values of currencies have a tremendous impact on the potential to keep a property booked to near full capacity.
The idea is to focus on short term opportunities but keep a long-term perspective that maintains the highest possible profitability.
3) Partner with online travel agencies
You’re returning clients and potential clients are loyal to their favorite online travel agencies. Revenue management can make use of the money that online travel agencies have spent building brand loyalty. That brand loyalty can transfer to your operation easily.
Revenue management must develop a close working relationship with online travel agencies. This allows your organization to cut better deals when times are bad. It also allows you to tailor your property to a service approach that is demanded by your clients.
Source: video trendspotting in Revenue management
