Revenue Management
 
Revenue Management
07 DECEMBER 2018 7:25 AM

Effective revenue managers communicate well and often with their teams and owners, optimize meetings and know what data to prioritize and how to use it to supplement technology.

Every dollar counts
“Keep revenue meetings high-level and designed to meet the hotel’s need for that week/month—what strategies are working/not working; what segments are pacing behind forecast/budget/prior year; what rate plans are doing well and how can we get more production? (Meetings) should be a free flow of ideas mixed with collaborative efforts. However, we know that nothing waits for this meeting. …We are making strategy decisions as they come up—time is money and every dollar counts.”
--Cassie Bond
Regional VP, Revenue Management, Chesapeake Hospitality

Communication is key
“Keeping open lines of communication at all times—I check in with all sales and accounting teams prior to leaving at the end of the day to make sure there is no outstanding question or issues between departments.”
--Deborah Marceau
Director, Revenue Management, Provenance Hotels, Heathman Hotel

Follow up and follow through
“Our owners are our lifeblood. When it comes to managing and maximizing an owner’s asset, my best advice is to follow up and follow through. When an owner or asset manager asks for something, poses a question to you or makes a suggestion, write it down, track it, proactively follow up and follow through. We use a property tracking report to keep track of our owners’ priorities, initiatives and action items so that we can ensure that we communicate with owners and our property teams effectively and efficiently.”
--Allison Handy
Partner, SVP, Sales & Marketing, Prism Hotels & Resorts

Maintain balance
“One of the best ways to determine if a hotel is playing market conditions optimally is to examine the relative balance between the occupancy index and rate index. In a well-matched competitive set, that variance shouldn’t exceed 10 points over the course of the year. Imbalance means leaving money on the table; balance means the hotel got rate when it could and volume when needed, not giving up too much to one or the other.”
--Bonnie Buckhiester
Principal, Buckhiester Management

Don’t rely on technology
“Our best practice is to enhance the technology we have by consistently feeding it timely, relevant market data. It sounds so simple, but too many revenue managers rely solely on the technology and the results show. We are the market area experts. There is nothing that can take the place of in-depth market knowledge—new supply, new compression, dynamics of weather changes and so on.”
--Don Urbahn
VP, Revenue Management, New Castle Hotels & Resorts

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