David Rajzman, Revenue Manager PriceMatch and Thomas Lyle, CEO and CoFounder of Frontdesk Anywhere, co-hosted a webinar on October 16th to give insights on Revenue Management for Revenue Managers and Non-Revenue Managers alike.
Let me guide you through the highlights of the webinar – the things about Revenue Management you surely want to know.
There are actually 3 main questions you should ask yourself:
- What is Revenue Management REALLY about?
- WHO can practice Revenue Management?
- How EFFECTIVE is it?
What is Revenue Management REALLY about?
Let’s review quickly the definition:
The application of disciplined ANALYTICS that predict consumer behavior at the micro-market level and OPTIMIZE product availability and price to MAXIMIZE revenue growth.
Simply put, Revenue Management is all about optimization and forecasting. The goal is to get clear insights from data to reach the highest occupancy rate to boost your revenue.
Sounds tasty, right?
At this time you may wonder: can I do that for my hotel? That’s our second question if you remember :
WHO can practice Revenue Management?
The correct answer is NOT mathematicians only.
As a matter of fact, many hoteliers think they need to be extremely good with numbers and have deep knowledge of algorithms to efficiently manage their revenue.
This was true 15 years ago but it is not anymore. Recently the hospitality industry is seeing more non-mathematicians practicing Revenue Management than mathematicians.
As you may have noticed, the hospitality industry has been experiencing huge changes at an incredibly fast pace. The good news is that with the SaaS Era you don’t need to be an expert anymore to manage your hotel like one. Nowadays, everyone can practice revenue management. You actually simply need the right service.
“With the right tools you can manage everything”,
Joe Mathews in Entrepreneur.com.
Now you have a better idea of what Revenue Management is, and you know it’s a challenge you’re up to. Is it worth any of your time?
How effective can it be?
We often think of revenue management as a time-consuming, data-centric and complex process.
What if I tell you that with only a few minutes of (easy) work a day, you can significantly increase your revenue? Indeed, innovative revenue management solutions now exist to take care of all the arduous, long and data-driven operations for you. These solutions enable you to gain time and focus on what you do best: creating amazing experiences for your guests.
What do we mean by increase your revenue?
Let’s take an example that speaks for itself, provided by our partner PriceMatch:
PriceMatch provides hotels with a very user-friendly revenue management system. The daily rates recommendations (calculated by their powerful algorithm) are simply displayed and actionable in one click. Additionally, PriceMatch tool can be fully integrated with cloud-based PMS software like Frontdesk Anywhere.
The fun begins here: their clients saw an increase of 7% up to 35% in their RevPAR, depending on the property type and the level of Revenue Management implemented before.
How would you like that for your property?
Frontdesk Anywhere’s users can try our new PriceMatch feature here.