Revenue management is often perceived as a data-driven discipline. However, behind the tables, charts, and algorithms are guests whose needs and behaviors are reflected in these numbers. Storytelling helps bring these numbers to life, justify decisions, and communicate the right actions.
Why Storytelling in Revenue Management?
- Explaining Complex Relationships Simply: Numbers alone rarely convince. A well-told story can help make complex relationships easier to understand. For example, the importance of demand forecasting can be vividly explained through a story about seasonal guests.
- Appealing to Emotions: Decisions are not only made rationally but also emotionally. A story can illustrate why certain price adjustments are necessary and how they affect the guest experience.
- Convincing Stakeholders: Hotel owners, sales teams, or front desk staff often do not intuitively understand why certain prices or strategies are set. Storytelling makes these strategies more tangible and comprehensible.
Practical Applications of Storytelling in Revenue Management
- Persona-Based Stories: Instead of just talking about “demand,” a story about “Anna, the business traveler” or “the Müller family on a summer vacation” can help illustrate different demand groups.
- Comparative Scenarios: Showing “What happens if we keep prices stable?” versus “What happens if we adjust dynamically?” can help evaluate decisions more effectively.
- Retrospective Success Stories: Case studies of successful revenue strategies can serve as inspiration and increase acceptance of new methods.
A simple Example of Storytelling in Revenue Management
Let’s take the example of a city hotel that primarily accommodates business travelers on weekdays but struggles with low demand on weekends. The story of “Markus, the business traveler” highlights why a flexible pricing strategy makes sense:
Markus travels to Frankfurt every week and prefers hotels with stable rates and included business services. He books in advance and is willing to pay a bit more for reliability. However, on weekends, many rooms remain empty. By offering targeted weekend deals for city tourists or families, the hotel could increase occupancy without lowering prices for business travelers during the week. This story illustrates how different guest segments can be effectively targeted and optimized through revenue management strategies.
Conclusion
Storytelling is a powerful tool to make revenue management more tangible. By connecting numbers with stories, we can not only make better decisions but also increase acceptance for our strategies. Ultimately, revenue management is not just about numbers – it’s about people.
