News for the Hospitality Executive |
|
The Future of a Revenue Manager 2.0 - Part Human, Part Computer, All Profits
By Jean
Francois
Mourier
January 25, 2012 What
will the Revenue Manager of the future look like? A recent article in the Journal of Revenue and Pricing Management cites a survey of 487 professionals and found the future is going to be much more strategic in nature and will be more strongly driven by technology – a point that I’ve been making all along. The article’s data pointed out that as technology evolves, analytical pricing models and social networking/mobile technology are going to have a major impact on the future. Experts in the hospitality industry agree with me that consumers are increasingly, tech-savvy shoppers. Already schooled in the way in which mobile has radically altered the air travel booking and in-flight entertainment experience, hotels guests are using everything from social media to online travel agents, (OTAs) to seek out and locate the best value. With the continued emergence of e-commerce, social media, and travel review sites, RM’s have even more to consider than just occupancy and profitability. They have to think about what motivates these traveling consumers, both by industry factors and by media influence. Does this sound a bit basic? Surprisingly it’s not. The role of the Revenue Manager has changed remarkably since the 1970s as RMs, were once thought of as nothing more than “number crunchers” or a collection of professionals whose favorite word as it related to budgets was “no.” The role of the RM has come a very long way since then and going forward in 2012, here’s what I would like to see succinctly in Revenue Manager 2.0:
While 2011 has largely ended on a revenue and occupancy positive note, (occupancy continues to nudge back toward 60 percent) travel dollars for business and pleasure remain tight. What’s more, regional or local travel by car in some cases has supplanted air travel. Thus, everything from business conferences to family getaways have grown more modest and local, and more value is being sought. App-driven flash sales or daily deals may improve occupancy rates in the short term, but do little to place a hotel in the budgetary black. In the end, a revenue manager’s job is never done. Whether it’s uncertain economic headwinds, or some other challenge just off in the distance, effective pricing strategies must always be more than putting heads in beds. Simply stated, technology can only benefit your hotel if you have the right Revenue Manager at the helm. With that said, I am very optimistic about the future of the profession of revenue managers and believe that the next decade will offer exciting opportunities for those entering or already in the field. And if you are an RM reading this article, I would love to get your feedback on the challenges and opportunities facing your profession as we kick off 2012. Feel free to email me [email protected].
Jean Francois Mourier is CEO and Founder of REVPAR GURU, a company that provides automated revenue and rate optimization solutions. REVPAR GURU’s real-time pricing solution combined with automated online distribution helps hotels maximize occupancy and increase their profits. The company’s Dynamic Pricing Engine, an integrated revenue optimization and pricing solution, adds unprecedented power and real-time adaptability to the pricing process, leaving revenue managers more time to run their hotels, make better decisions and do what they do more efficiently. You can reach Jean Francois through www.revparguru.com or by calling 1.786.478.3500. |
Contact:
REVPAR GURU INC.
|