5 New Tasks of Revenue Managers
Revenue Managers used to deal with data analysis. Their role was often misunderstood, and they stayed out of the spotlight. Even Michał Forysiak, our current CEO and previously a long-time Revenue Manager, spent most of his working hours alone in a glass office (called “the aquarium”) where he did his tasks. The problem of keeping oneself to oneself isn’t just about Revenue Managers. Many hotel departments operate in silos – they work on their own without communicating efficiently with other departments. In the coronavirus era, this approach has become obsolete. The teams are smaller while the situation is completely unprecedented. That is why a new system of work needs to be in place. As a Revenue Manage, you have to take charge and face new tasks.
1. Remove the silos
Although the COVID-19 vaccine is already in use, it will take a while before the pandemic is over. So to guarantee the hotel’s success, its employees must discard the silo approach and act as one team. As a Revenue Manager, you need to ensure that your hotel staff jointly analyzes current trends and prepares a reasonable action plan. It doesn’t mean that everyone will do everything though. Once you have come up with a plan, give each department specific tasks. Finally, check the results. Don’t forget to go easy on your colleagues as not everything depends on them right now. This also applies to forecasts prepared by Revenue Managers, which need to be updated very often. Those forecasts still may not work out due to sudden market changes.
2. Provide current data
Since we are discussing changes, we should consider the approach towards Revenue Managers. As we have already mentioned in the introduction, until now Revenue Management could be viewed with a grain of salt. Other employees sometimes used to think that Revenue Management was simply about changing prices across channels according to the Revenue Manager’s whim. Not everyone realized that it is a serious process based on figures, hard data and extensive analyses of the hotel and its surroundings. Now hotel staff need to know more than ever what is going on in the outside world and what trends can affect their hotel. As a Revenue Manager, you must frequently present facts to your team and help them develop strategies for the upcoming times. Due to the situation volatility, you will often need to review these strategies. Don’t be afraid to make changes – nowadays it is nearly impossible to determine the best course of action.
3. Promote the RM approach
From now on, you are no longer just a Revenue Manager. You are in charge of all products, services and resources of your hotel. You need to promote a Revenue Management culture among all hotel employees. It is your responsibility to support other departments, especially sales and marketing. They must know that Revenue Management is crucial in times of crisis such as the ongoing COVID-19 pandemic. It’s clear that higher revenues will lead to the hotel’s faster recovery. Also, don’t forget to analyze market opportunities and adjust the hotel’s fixed costs to the current and potential demand. Cutting costs is as important as increasing revenues.
4. Create guest experience
When you give something, it’s time to get something from others. Remember that you don’t just sell rooms or hotel services as such, but you offer specific guest experience. The benefits of your guests must come first. That is why you should consult the sales and marketing departments to consider the options of offering entire packages or upselling. Your task is to quickly regain profitability, so think about the best ways to reach potential guests. Mind that you are working on limited demand. Instead of managing it, you need to generate demand. This is where marketing and promotion step in. Analyze your existing guest database as well as your competitors. Then think about how you can promote your services and adjust prices to ensure a high level of hotel occupancy. Remember that guest expectations have changed – now guests focus on cleanliness and safety!
5. Become a technology leader
Revenue Managers are often regarded as technology pioneers. But are your tools as modern and effective as your methods? Perhaps it’s worth investing in a new Revenue Management System (RMS). Nowadays, such tools are particularly important because they enable instant data analysis during rapidly changing demand. You can use them to frequently prepare forecasts and simulations, analyze trends, and redefine competition. In addition, RMSs often determine sources of ancillary revenue which allows for more effective room price optimization. Finally, RMSs are the best data source for hotels that are reorganising their work to return to pre-pandemic conditions. If you want to maintain your position as a technology leader and support your hotel with necessary data, get the right RMS for you. Find out how much it can help you with your new tasks.
If you are a Revenue Manager that used to spend most of the day in an “aquarium”, now you need to break out. The new tasks will make you change your professional habits. But don’t be afraid – the new reality requires a new approach. It doesn’t matter how you used to work – now your entire team needs to cooperate to take fast and reasonable actions. Remember that you are in all this together, so you have to get out of it together. Your current efforts will influence how smoothly your hotel will come out of the pandemic. Of course, you cannot be responsible for the whole situation (pandemic spread, government decisions). However, do everything you can to increase your hotel’s profitability. And you, dear Revenue Manager, get ready for your new tasks!
If you need help with preparing for these new tasks, please contact us for professional advice!
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