Revenue Management: Quo vadis?

Revenue Management Quo Vadis

Because revenue management is not just about managing availability and prices on the various channels. Nor is the use of revenue management software a guarantee for successful revenue management. Revenue management is rather a holistic management concept that must be embedded in the organisation of the company and integrated into the corporate strategy. It requires a balance in the interaction of people, processes and technology. It is increasingly strategic and long-term oriented.

Organisationsstruktur Revenue Management

The heart of revenue management - the forecast

The prerequisite to sell the right product, at the right time, …, etc., is to know the demand and the willingness to price per day of the week and market segments. Without a stable forecast, per day/segment, a hotel cannot know if the pricing decisions are correct and the restrictions applied are reasonable or unnecessarily drive out business.

Often the heart of revenue management is missing in hotels. Decisions are made on the reservations on the books (OTB), empirical values and gut feelings.

The revenue manager’s time is tied up with manually entering and updating data in Excel and creating reports for individual team members. Meanwhile, the analysis of booking patterns, daily forecasting and the derivation of strategies come up short. In the age of Big Data and a high level of dynamism, only a fraction of the data is captured and updated. The timely integration of data into decision-making processes is almost impossible.

Revenue management technologies support the forecasting process with scientific analysis methods and algorithms.

Qualified revenue managers

Many of today’s revenue managers have come out of Rooms Division Management. They generally master the principles of revenue management for their strategic planning and day-to-day decisions in the logistics sector. However, strategic and technology-based revenue management requires revenue managers with strong analytical skills, strategic alignment of all revenue streams, leadership and communication skills. For the training of this new generation of revenue managers, companies, universities and training institutes are equally challenged.

Birgit Haake - Expertin Revenue Management

Author: Birgit Haake

Birgit Haake has more than 25 years of practical experience in the hospitality industry and healthcare. With her company Haake Revenue4U, she supports individual hotels and hotel chains in Germany and Europe as an expert in revenue management. Her core competencies are booking management, (MICE) revenue management, pricing and online distribution. Birgit Haake holds a degree in business administration and has completed her training as a hotel manager. She is a certified trainer and has been a university lecturer in international hotel management and tourism management for many years.

Share article:

More blog posts

revenue-management-pricing

Revenue management in the hotel industry: more than just pricing

Revenue management is much more than just setting prices. It is a complex and holistic approach that aims to maximise revenue while optimising value for the guest. But what exactly does this holistic approach mean? And how can hotels implement this approach effectively?

Reservation Status in Revenue Management

The booking status is relevant for the planning of every company and is an important key figure in forecasting. Find out what impact the consistent mapping of the booking status has and how you can use it to develop the right strategy. How to maximise your revenue …

Get the monthly Revenue Management Toolbox!

Receive the latest revenue management insights and expertise directly to your inbox.

After your free registration, you will immediately receive the latest Revenue Management Glossary by email.

Enjoy reading!