Reservations find their way to your property through many channels and in many forms. Some traditional examples include: phone, website, groups, third parties (Expedia/Travelocity), travel agents, corporate booking and tour operators.
Balancing the need to fill rooms with the need to maximize ADR/RevPar has given resurgence to the often imitated, but never duplicated, position of Revenue Manager.
Revenue Management, and having a dedicated individual or team, charged with optimizing the distribution of a property’s room nights is increasingly being embraced in a new found manner by hoteliers. Typically revenue management was handled in an ad-hoc manner by the General Manager of a property. However a shift is occurring in today’s marketplace. Due to their revenue management experience, although less than formalized, current General Managers are looking for individuals to fill this increasingly important role.
Days when demand is low are the days in which a smart and talented Revenue Manger can drive incremental revenue at your hotel property. Bob Gilbert, president and CEO of HSMAI goes so far as to say, “The smart ones [Revenue Managers] are the more progressive people that understand the business acumen of the hotel. More and more sales managers have grown up in the revenue management culture with demand tags, and common sense tells them to focus on low demand days rather than high demand days.”
Is a dedicated revenue manager too much for your property? I know some of you may be thinking yes, but I would encourage you to analyze how much additional revenue could be generated if you employed a dedicated individual to manage the pricing and distribution of your room nights. I think you may find that employing a Revenue Manager, in the long term, will be a source of increased revenue for you and your property.
