Carol Verret Consulting
The Integration of Revenue Drivers
Carol Verret / March 2004
As peak season nears for many hotels, revenue management is the key to a successful summer season. Leisure remains strong even as business travel continues to disappoint and it is imperative that in March the pieces are in place to maximize revenue.
Potential customers are much smarter than they used to be about locating, qualifying and making their hotel choice. In many cases, this process is completed without ever contacting the hotel.
The term revenue management means many things to different people -- whatever the definition, the intended end result of the process is increased REVPAR for the organization. It is increasingly clear from feedback that I receive at seminars and from my consulting clients that there is often a lack of co-ordination and/or consultation on the rate and offering through all of the revenue drivers.
Revenue drivers are defined as all areas of revenue generation within the organization. This includes central reservations, property-level reservations, the sales department, the electronic distribution channels and the web site. While franchised properties have a higher level of consistency through the GDS, it still requires monitoring and management at the company or property levels.
At a recent sales seminar, participants expressed frustration that they are largely unaware of, nor are they consulted about the rates that are posted on the electronic distribution channels. One result is a very high attrition rate in meetings and conventions as attendees book their hotel at these lower rates and "fall" off the group block. Another consequence is when the rate posted is lower than what has been negotiated with third-party suppliers such as wholesalers.
A coaching client of mine expressed frustration over his lack of consultation in the development of the new property web site and the rates that are being quoted through the site. First of all, the content was skewed to a specific market segment that was not representative of the core business segment and secondly, the copy changes disrupted the optimization strategy.
Secondly, the rates that were quoted were not at all aligned with the rates being quoted at the property level or through the central reservations agent and many room descriptions were inaccurate. The end result was that not only was this hotel nowhere to be found on the key word searches in the major search engines -- a potential disaster for this independent property, but fewer reservations were being made through the site.
Collaboration across all departments that generate revenue is the only way to ensure continuity. This need not be a tedious process of endless meetings. A few things put into place and adjusted periodically, based on market conditions and forecasts, are sufficient:
The process of collecting the information is about communication and collaboration and can be accomplished through periodic updates from the revenue drivers to the revenue management team. This swings both ways as revenue management needs to keep the revenue drivers informed of their proposed tactics in order to solicit input and buy in.
The consequence of not doing this is to present an inconsistent message to the public who is in the position of making selections without any direct contact with the property thus depriving the hotel from any opportunity to make adjustments or explain the disconnect. In the consumer's mind, a hotel that can't get its act together to project consistent rates may have the same problem when it comes to servicing them as guests.
The issue is more than rate parity, it is aligning the rate structures between all revenue generating departments so that each is maximizing their contribution to revenue.
copyright © Carol Verret, 2002-2003-2004
Carol Verret is President of Carol Verret Consulting and Training, a company offering consulting and training seminars to the hospitality industry in the areas of sales and marketing and customer service. If you missed attending our live webcasts in the Training Byte Series in 2003, you will be glad to know that we are now offering each "Training Byte" in PDF format on our web site. We will not be repeating these webcasts in 2004. To order your copy, please visit http://www.carolverret.com/webcast_training.htm
Watch for our new Training Byte Series for 2004
Verret is a twenty-year veteran of the hotel industry. She arrived in Denver in the midst of an economic downturn and quickly established herself as an expert in sales and marketing in hotel turn-around situations, applying her formula for REVPAR improvement. To learn more about Carol Verret, Consulting and Training, visit her web site at http://www.carolverret.com
3140 S. Peoria St, PMB 436
Aurora, CO 80014
Web Site: http://www.carolverret.biz
Email: [email protected]
|Also See:||CYBER SALES -- Hotel Sales in an Internet World is the New Reality / Carol Verret / February 2004|
|The New Realities of Hotel Sales - Focus on Revenue Generation / Carol Verret / January 2004|
|Hotel Sales -- Innovation in the Face of Limitations / Carol Verret / November 2003|
|The Good News & the Bad News; Improving Economy = New Hotel Development / Carol Verret / October 2003|
|Leadership - General Managers Managing the Sales Process / Carol Verret / October 2003|
|When the Crystal Ball is Cloudy; Marketing Plans for 2004 / Carol Verret / July 2003|
|Partnership of Sales and Technology; Using Tech Tools to "Sell" the Hotels / Carol Verret / July 2003|
|Back to the Basics? The Basics of Hotel Sales Have Changed! / May 2003|
|Creating Sales "HUNTERS": The Skill Sets Required in the New Hotel Sales Environment / April 2003|
|Heightened Security Requires New Strategies in Hotels Sales / Carol Verret Consulting and Training / Mar 2003|
|Revenue Recovery - Building The ‘A’ Team in Sales / Carol Verret / January 2003|
|Contingency Marketing Plan – War In Iraq! / Carol Verret / November 2002|
|Playing the Rate Game - Positioning -- Positioning -- Positioning! / Carol Verret / October 2002|
|The Rate Game - Playing to Win / Carol Verret / October 2002|
|The Challenge of Marketing Independent Boutique Hotels / Carol Verett / August 2002|
|Hotel Sales in a Limited Service Environment - The Rules Have Changed / Carol Verett / August 2002|
|The General Manager’s Role in Sales -Chief Marketing Officer of the Hotel / Carol Verret / April 2002|
|100% Market Share Penetration is Not Good Enough / Carol Verett / January 2002|
|The Key to REVPAR Recovery – New Business Development / Carol Verett / December 2001|
|Trash the 2002 Marketing Plan - And Just Start Over / Carol Verett / September 2001|
|How to Use Consultants Effectively – A View From the Other Side / Carol Verret / August 2001|
|How Soft Is Your Hotel's Economic Landing? / Carol Verret / Aprl 2001|
|The ‘Value Proposition’: Marketing Yourself to Prospective Employees / Carol Verret / January 2001|
|Generation Y: Motivating and Training a New Generation of Employees / Carol Verret / November 2000|
|Why Customer Service Seminars Don't Work / Carol Verret / October 2000|
|Creating a Culture of Customer Service / Carol Verret Consulting and Training / Sept 2000|
|FAT, DUMB AND HAPPY – The Seasonal Boom and Bust Cycle / Carol Verret / August 2000|
|Surf's Up - Ride the Wave or Miss the Boat -The Effective Use of Technology in Hotel Sales / Carol Verret / July 2000|
|Measuring Effectiveness of Hotel Sales Departments / Carol Verret / June 2000|
|Hotel Sales Training - The Need for Immediate Results / Carol Verret/ May 2000|