5 Ways to Balance between Revenue Management and Sales
1)
Keep Your eye
on the Goal: - Often times sales and revenue Management teams,
fail to connect due to conflicting goals. Revenue Management wants to drive
average daily rate (ADR) and gets frustrated with sales override decisions and
sales gets confused as to why revenue managers quote the rates they do. AN
integrated tech stack ensures that sales has access to the big picture and can
fully understand the potential of higher-value business that may be competing
for the same inventory.
2)
A group is a
sum of its parts: - Better evaluate a group’s total revenue
opportunity by examining it on an individual level as well. Will attendees be
buying contacts or colleagues drinks in the bar? Will they be utilizing spa
services? These factors must also be accounted for when considering a
particular piece of group business.
3)
Opportunity Cost: - A newer
trend that’s occurring is that, groups are asking hotels for more extras, like
F&B discounts and room upgrades. An advanced RMS allows hoteliers to
quickly weigh the costs of those extras against the potential benefits, guiding
management to make optimal Business decisions.
4)
A Good Experience: - The
meetings and events landscape is changing to include more experiences, and
“Instagrammable” moments. Maximize your revenue stream by teaming up with local
providers (and revenue manage) to develop unique excursions and immersive
experiences that enhance customer experiences as well as your bottom line.
5)
Get Personal: - Hotels
can increase profits through guest personalization models that expand revenue
potential. For Example, even though guests are part of a group, hotels can
utilize integrated revenue management and CRM data to offer upgrades, meal
options, spa treatments, and even activities at a personal cost, based on
individual preferences.
- PAWAN SAHANI
(TEAM LEAD OF REVENUE MANAGEMENT)
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