Carol Verret Consulting
Carol Verret / October 2004
At a recent regional General Manager's meeting, I was invited to facilitate a discussion on the revenue management process and the GM's role. There were seven General Managers in the room and we had about as many opinions on the subject.
The opening comments ranged from not quite knowing what the Revenue Manager actually did all day to viewing the Revenue Manager as setting policy on the rates to be quoted by everyone in a position to do so -- with a lot of comments in between. Some viewed the Revenue Manager as a gatherer of data only and the position as being essentially a part-time function while others viewed the Revenue Manager as critical to the overall revenue strategy of the hotel.
I would hazard a guess that the answer is variable, depending upon the company and the hotel policy. What was evident in this discussion was that some GMs had a higher comfort level with the Revenue Management process than others.
The relationship between the sales department of the hotel and the Revenue Manager is another potential area of confusion. In some situations, Directors of Sales have indicated to me that there was little communication between the two departments. Many times group blocks were sabotaged by a lower rate that the Revenue Manager had offered to the Electronic Distribution Channels, incurring a high attrition rate for groups whose attendees had located that lower rate for the hotel on the Internet and booked out of the block.
One DOS indicated that her staff had to get approval from the Revenue Manager prior to quoting rates for groups. It was often difficult for the sales person to explain a lower rate quote for a certain period of time justified by the organization's potential to book more business in an opportunity period, the need for rate consistency within a market segment, or a long standing relationship that the organization had with the hotel.
How does a GM lead the Revenue Management process to ensure that both
the needs of the client and the hotel's revenue objectives are met, not
to mention ensure the cohesiveness of the team?
Leading the revenue management process is critical to the success of the hotel. It is not about analyzing the data within the spreadsheet but is ultimately about creating value for guests in every market segment without jeopardizing the hotel's revenue goals -- it is that guest value quotient that we often lose site of in the process!
Carol Verret Consulting and Training is a full service company offering consulting, training and other services to the hospitality industry in the areas of sales, marketing, customer service and human resources. Included in their suite of services are programs on Revenue Management, Leadership and Conflict Management. Please direct any feedback directly to Carol Verret at , or by phone (303) 618-4065 or visit the web site, www.carolverret.com.
copyright Carol Verret, 2002-2003 -2004
If you would like Carol or one of her associates to conduct a marketing plan seminar for your company like the one mentioned above or a facilitation, as mentioned in this article, contact her at [email protected]. Don't delay -- September is filling up fast!
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 offer 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
Our Training Bytes Series for 2004 has begun!
Give your team the advantage - get help from a Pro!
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
Send email to [email protected]
3140 S. Peoria St, PMB 436
Aurora, CO 80014
Web Site: http://www.carolverret.biz
Email: [email protected]
|Also See:||Transforming the Hotel Sales Organization; Alignment with the New Realities of Sales / Carol Verret / August 2004|
|The Revenue Management Strategy - The Pre-Plan Marketing Plan / Carol Verret / July 2004|
|Hotel Revenue Management this Summer - a Game of Skill, Art and Most of All Nerves / Carol Verett / May 2004|
|What Do Meeting Planners Want? Hotel Sales Managers Want to Know! / Carol Verret / May 2004|
|Revenue Management -- The Integration of Revenue Drivers / Carol Verret / March 2004|
|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|