Revenue management executives can improve hotel performance by providing actionable data, says Sibylle Luger, Regional Vice President, Account Management, EMEA & APAC at IDeaS.
The old rules for doing business were overwritten in the wake of the pandemic. The hospitality industry is entering a new era shaped by insight, experience, and data. In order to properly manage networked retail companies using the findings from data analysis, hotel operators rely on experienced managers in revenue management who convey their knowledge and understanding in a concise and actionable manner.
These sales leaders have the ability to analyze historical data, then compare and contrast it with current events in a way that has never been seen before. In a fully networked retail organization, revenue teams can pull data from every corner of the property and portfolio for real insight into the evolution of bookings and rates, and how operators can respond to in-kind benefits.
The problem is, data can be unwieldy when it comes to acting on it. While it can deliver important revelations that can change the way operators do business, it’s all for free if executives miss the message. Revenue management today is so much more than just forecasting and pricing. It takes creativity to shape the insights gained from data and make them available in a meaningful way.
Focus your message
“Everything was the same – until one day everything changed.” This may sound like the start of a great pitch for Netflix, but storytelling for business requires a different approach. Sales leaders can set the framework by quickly realizing where a data move has taken place, what triggered it, and how to do it based on that knowledge.
The goal of such a message should be to summarize everything in one statement or a key visual. This is best done with a meaningful heading for each report, followed by a hypothesis about the impact of those results. Most importantly, sales leaders should customize their reports based on the departments they receive. Sales, marketing, reception, food and drink, and housekeeping consume and work with information in different ways.
This hands-on approach by the revenue leaders is necessary as ongoing economic uncertainty suppresses the experimentation of companies. Operators need to adapt to new ways to increase revenue, and revenue management is key to overcoming their fear of failure. Hoteliers can use data as a guide to be more confident in their decisions with every step.
Create context
Operators do not have time to familiarize themselves with the history of historical data. You need to rely on the data sales leaders to make their decisions and where those decisions will lead them. With this in mind, sales leaders can primarily focus on building a context around data analytics.
The challenge here is twofold. First, sales leaders need to be able to develop relationships with business and trade leaders that allow them to freely exchange ideas. Second, they must willingly step outside the confines of a traditional revenue management role and become commercial analysts and change leaders capable of directing a hotel’s operations.
It is easy to fall back on operational strategies that have worked in the past, but sales leaders need to remember that their role is one of the newest in the hospitality industry and has evolved at a rapid pace. The definition of role is constantly changing and in times of economic uncertainty, revenue management is required to unlock a hotel’s potential growth. By leveraging their existing skills to assume broader commercial leadership roles, sales leaders are able to influence hotel operations beyond the traditional scope of the position.
Speak
Data has made sales leaders experts in long-term strategic planning, but the challenge of moving forward isn’t on their shoulders alone. Hotels must create an environment that is conducive to experimentation and offer the appropriate opportunities. Revenue management software can only do so much if it remains detached from other hotel systems. A fully connected organization allows sales leaders to pull information from every corner of the hotel, but many hotels still use legacy systems that are separate from the cloud.
The role of revenue management has evolved significantly from its humble beginnings, and today’s revenue leaders have growth-enhancing marketing skills that are unique in today’s business landscape. For this reason, it is up to modern sales leaders to resist the use of inferior technology and data sources, take the lead in promoting the performance of sophisticated sales technologies, and promote a holistic sales strategy across the entire retail organization.
Hotels today remain constrained by labor shortages and rising guest expectations. Only operators willing to try new things at all levels of the company are positioned for success, and revenue management is leading the movement. Sales leaders need to become seasoned data storytellers who use the sales management system along with other analytics technology and business intelligence tools to bring the dots together and develop a strategy for greater profitability and commercial success.
This is an edited version of the an article that appeared on Hotel Management.
