News for the Hospitality Executive
SAS and IDeaS Address Revenue Managers’ Concerns at the
Premier Business Leadership Series Conference
Revenue managers cite importance of optimizing revenue in poor economy
Feb. 2, 2008 – Minneapolis, Minn. – IDeaS Revenue Optimization, the leading provider of hospitality revenue management and optimization solutions and services, today released feedback from revenue managers that participated in a joint IDeaS/SAS focus group regarding gaming revenue management needs and challenges for 2009. The focus group included seven revenue managers from the world’s leading casinos and took place at “The Series” in Las Vegas, an executive event that explores topics facing today’s global business leaders. Revenue managers agreed that the number one concern for 2009 is the ailing economy and the importance of revenue optimization strategies to remain competitive.
“The economic conditions in Las Vegas bring the importance of the revenue management function to an entirely new level,” said Rom Hendler, vice president of strategic marketing for The Venetian and The Palazzo. “In these uncertain times, our hotel can significantly benefit from the sophisticated analytics and understanding of profit optimization that SAS and IDeaS provide.”
“Feedback from our top gaming clients is incredibly valuable as they are beginning to reap the benefits of our relationship with SAS,” said Linda Hatfield, vice president, product management, IDeaS. “We look forward to providing the most effective revenue optimization and pricing solutions for our clients to combat these tough economic conditions.”
Focus group participants discussed how changes in the economic climate are forcing revenue managers to spend more time performing deeper analysis on their demand patterns. Executives are requiring up to the minute performance data, faster reaction times, and weekly or even daily budget forecasts. This puts pressure on the revenue management function to constantly evaluate and react to market conditions. Revenue management systems not only must adapt to market conditions quickly, but revenue managers must be better prepared to make sound pricing and inventory control decisions in order to make the most of existing demand.
Focus group participants also discussed the need to move from demand management to demand sourcing. During economic downturns, the revenue department needs to become more strategic and more proactive in order to fulfill demand. This means working more closely with the marketing department and sourcing CRM data to understand who might fill that demand.