The Key To Hospitality Revenue Management
Many hospitality establishments spend a great deal of time searching for the perfect Revenue Manager for their business. The reason? Because the role of the Revenue Manager is critical to the success of any business. Essentially, they play the role of the business analyst - predicting trends, forecasting revenues, adjusting pricing and implementing strategies. They are tasked with making every decision for the business, so having the right person in place for this job is essential. IHS Online offers an exceptional Hospitality Revenue Management Course that provides students with a basic understanding of the revenue management process. It addresses the proper use and importance of revenue management in hospitality operations and describes the wide range of elements that must be considered in order to use revenue management effectively.
Here are a few key hospitality revenue management guidelines to follow:
1. Rememeber everyone’s listening
These days the internet is social media and a good strategy for managing your online presence is vital. Facebook, Twitter and Instagram are not your only channels to think about, you now need to factor in TripAdvisor, Foursquare, YouTube and local websites and blogs. Communication on the internet takes place all day every day, and there needs to be someone in charge to be monitoring it. Revenue Managers are often extremely busy and won’t be able to manage social media, therefore a social media community manager is very necessary. This person can be entasked with the duty of implementing and moitoring your online presence.
2. Choose the right distribution channels
Choosing an e-distribution channel that is right for your hotel is very important. Several factors need to be taken into consideration, from channel contribution potential, distribution spread and cost to how easy the channels are to manage, what types of marketing exposure they can provide and the sort of technology they use. If you want to target the mobile-commerce market, choose a distribution partner that has access to these channels. Demand is slowly improving, and it has never been more crucial to ensure your hotel is visible on all channels as it is now.
Identify the right channels for your establishment, manage your rates dynamically and don’t lose sight of rate parity across all channels. If you’re currently distributing rates manually to a number of different channels, a good option to consider is a channel manager. They will make your life easier and leave you with much more time to make important strategic decisions.
3. Invest in your own website
At least 10% of revenue should be generated from your website and it should generate at least 25% of your revenue in the next couple of years. One of the key factors to achieving this is through search engine optimisation (SEO) and Pay Per Click (PPC) campaigns and as a revenue manager you should already be thinking about these strategies.
Consider your target market, identify what keywords your audience is searching for and ensure your website is optimised for these keywords. Take a look at the competition - what key words is your competitive set appearing for in the search engines? Think seasonally - are your key words changing when you promote new rates and offers? Talk to your webmaster and ensure they are doing this properly. It they’re not working on this at least three times a week, you’re not optimising your website as much as you should be. A good representation company should be able to help you devise an effective SEO and PPC strategy.
4. Value is essential
In a recession value becomes the most important factor but this doesn’t mean you have to compromise on your pricing. Offering your customers value added packages where they get a free night when you book or get discounts depending on the length of their stay.
5. Create meaningful relationships
Investing your time in cultivating strong relationships with your distribution partners, online travel agents and corporate accounts will have better results in the future. You don’t need to be Superman and do everything on your own.
6. First or last?
It is essential to constantly reasses your target market, as we are in a recession and technology is now playing such a pivotal role in consumers lives we need to always know who our core customers are, and are we reaching them with our marketing tactics? Could you possible expand your target market and reach a different client base?
Once you’ve identified your target market look at how they book their holidays - are they booking last minute or are they looking for early bird deals? Are they booking through travel agents or through their mobile? Never try to assume your customer’s shopping habits are the same as they were last year and ensure you adapt your strategies to respond to the changes in the marketplace and to the changes in the digital space. By understanding and doing the proper target market research you will find golden nuggets of information that you can use in your marketing and revenue strategies.
7. Focus on the future
Booking patternshave the potential to change dramatically, be it by the season or economic and technological environments. However revenue management relies strongly on historical data, in a volatile economy, it’s important to project ahead and understand how all influencing factors will affect the way people book at your hotel.
The internet now gives access to last minute availability and allows people to shop around for the best deal very easily. The fragile economic climate has also changed the way people think about their holiday, with a uncertain employment climate, people don’t want to commit to a holiday too far in advance.
People are still travelling but are happy to book last minute and for a shorter length of stay. Being able to respond to changes such as these with targeted and differentiated rates and packages such as attractive last minute offers will definitely give you a competitive advantage.
8. Set your targets and budgets early
Now is the best time to set your revenue management targets and budgets next year. Ensure you leave your self plenty of time and try to anticipate any problems that may occur. Take into account all the points raised above and include them in your budgets including SEO, PPC and social media strategies. Understand your current situation and set SMART goals - they should be specific, measurable, attainable, relevant and time-based.
Collaborate with other departmental objectives and always communicate your revenue management objectives to your colleagues and staff in particular the sales department to ensure you are all working towards the same goals.
How can you become a successful Revenue Manager?
International Hotel School’s Online Campus offers an exciting online Hospitality Revenue Management course. This intensive 10-week programme will give students a basic understanding of the revenue management process. It addresses the proper use and importance of revenue management in hospitality operations, and it describes the wide range of elements that must be considered in order to use revenue management effectively.
What does the programme cover?
- The concept of revenue management and the history of its development.
- Business traits that create the environment appropriate for the use of revenue management.
- Strategic and tactical revenue management.
- Internal and external measures that can be used to judge a property’s performance.
- Determining the effectiveness of revenue management tactics and strategies.
- Forecasting demand and room availability in driving tactical revenue management.
- Implement tactical rate management and stay controls to maximize hospitality revenue.
- Capacity management.
- Displacement analysis.
- Using revenue management in generating demand and the creation of marketing strategies.
- Strategic pricing and revenue stream management.
- Managing distribution channels for the greatest effect.
- Automated revenue management systems.
Graduates receive the IHS Short Course Certificate as well as an AHLEI award, making this one of the most valuable and sought-after courses on offer at our Online Campus. If you would like to enrol or know more about this programme, give us a call on 0861 44 33 00 or email us your query at firstname.lastname@example.org