- How has the revenue management role changed over a period of time, especially after the pandemic?
After pandemic forecasting becoming key for revenue managers, it became more of short-term forecasting accuracy focus considering the pace each month & changing business sentiment basis rising cases or other factors such as work from home & travel restrictions etc
Focus on identifying different revenue opportunities i.e. introducing cloud/ dark kitchen at hotels to optimize revenue from online food delivery etc –
Identifying unique business opportunities and convert before competition does, example – doctors/ medical staff group blocks during peak pandemic period to retain occupancy levels etc –
Local leisure focused, incorporate leisure content across online channels and recreational activities within the hotel premises – effective coordination with marketing & hotel operation team to drive conversion
- What are the new challenges that the hotel faces in revenue generation?–
Price sensitivity was the key challenge, hotels featuring competitive rates to drive volumes when business opportunities were limited to local leisure & those were driven with lower price points.
Lower profit margins, though there were revenue generation opportunities, the contribution/ profitability was a real concern due to value added pricing or lower price point business.
Though hotels realized this very soon and prices started increasing month on month, our Accor Hotels in Chennai had seen steady increase month on month and currently most of the hotels crossing or touching 2019 (pre-pandemic) ADRs.
- How has the social media influx changed the way revenue is managed and what has been its impact in the present and for the future?
Social media played a key role in converting direct business to hotels, effective social campaigns to encourage travellers to book direct became a key focus at hotels.
Community perception for hotels became key to drive local leisure and social business- hotels using social media as a lever to influence and drive engagement activities using an influencer.
- What are the other engagement tools and strategies that hotels are looking at to maximize their revenue?
Price increase being the key focus at hotels and more focus on reputation to gain higher acceptance
Introducing hybrid pricing model for corporates contracted business i.e. dynamic and static both. Dynamic pricing plays a key role when demand level goes down and pricing becomes key to convert business, at the same time during high demand period optimize from higher dynamic corporate rates, WIN-WIN situation for both corporates and hotels
Automated price change via Revenue Management System (RMS tool) for busy hotels, price changes automatically as per the demand, accor already has such system in place.
Upsell initiatives at hotels level i.e. customized offering to entice travellers to buy them – Adding leisure elements such as pet friendly hotel, kids stay complimentary etc.
- What, according to you, are the changes that the revenue management will have to adapt to stay relevant in the years to come?
Automated tools / systems like the one I mentioned above, auto price upload as system sees sudden pick up or high demand (rather than waiting for a revenue manager to make changes, the delay may cost revenue which can be prevented with automated systems in place).
Hybrid pricing model across all segments- more of a dynamic approach as demand level changes / more flexibility to increase rates when needed rather than waiting for a year (contracted static rate validity period is for a year) for any changes.
Shifting focus to drive hotel direct business to maximize profitability- initiate best practices in coordination with marketing and digital team.
Focus across all revenue streams even minor operating departments i.e. transportation, laundry etc.
