What is driving the industry’s move to revenue strategy?

When the hotel industry started adopting revenue management as a practice, it was born out of a need to manage rates and inventory at a very transactional level. Very often front office managers, reservations managers and others who didn’t necessarily sign up for this job, were being asked to also be ‘Revenue Managers,’ but not to quit their day job. As the discipline has evolved, grown and become more scientific in its approach, we’ve discovered that there is a real need to keep the business strategy top of mind and the term “Revenue Strategy” was born.

Revenue Strategy continues to evolve as a way to manage all of the many moving parts:

• Managing the overall strategy of the channel mix, including the acquisition costs associated with that business

• Adding groups on the books to the right time

• Working to collaborate between disciplines of sales, marketing, digital marketing, and operations to have a successful overall strategy for the hotel

It’s no longer about limiting one person in one role to manage all the rate decisions on a day-to-day, hour-to-hour basis but really focusing on the overall long term strategy for the hotel and its business.

Contact us to learn more about a revenue strategy platform that tracks acquisition costs and surfaces the most profitable business for both your hotel as well as opportunities that you could look to win back from the benchmark group.