5 Ways to Balance between Revenue Management and Sales
1) Keep Your eye on the Goal :- Often times sales and revenue Management teams, fail to connect due to conflicting goals. Revenue Management wants to drive average daily rate (ADR) and gets frustrated with sales override decisions and sales gets confused as to why revenue managers quote the rates they do. AN integrated tech stack ensures that sales has access to the big picture and can fully understand the potential of higher-value business that may be competing for the same inventory.
2) A group is a sum of its parts :- Better evaluate a group’s total revenue opportunity by examining it on an individual level as well. Will attendees be buying contacts or colleagues drinks in the bar? Will they be utilizing spa services? These factors must also be accounted for when considering a particular piece of group business.
3) Opportunity Cost :- A newer trend that’s occurring is that, groups are asking hotels for more extras, like F&B discounts and room upgrades. An advanced RMS allows hoteliers to quickly weigh the costs of those extras against the potential benefits, guiding management to make optimal Business decisions.
4) A Good Experience :- The meetings and events landscape is changing to include more experiences, and “Instagrammable” moments. Maximize your revenue stream by teaming up with local providers (and revenue manage) to develop unique excursions and immersive experiences that enhance customer experiences as well as your bottom line.
5) Get Personal :- Hotels can increase profits through guest personalization models that expand revenue potential. For Example, even though guests are part of a group, hotels can utilize integrated revenue management and CRM data to offer upgrades, meal options, spa treatments, and even activities at a personal cost, based on individual preferences.