Post by mdkabila on Mar 12, 2024 3:01:44 GMT -5
Hotel revenue management , like everything to do with tourism and technology, is constantly changing . It changes along with the market, traveler habits and new trends. It evolves, grows and becomes more complex. So, we may soon find ourselves calculating Revenue per Hour and maybe even renting hotel parking. Jeremie Catez , who was a stable revenue manager at Accor's Novotel Times Square for a long time and is today an independent entrepreneur, gave a curious interview to eHotelier , where he explains what to expect from revenue in the coming years.
In a few simple points, Catez explains to us that the revenue management that we all know is disappearing, supplanted by a new culture , which is more aimed at profits and which brings together under its umbrella a whole series of new sources of income that have often been underestimated Denmark Phone Number until now. . 1 – Transform the RM into PM “If revenue is the only priority, how many profit opportunities are lost? We should focus more on profits than revenue. And it would make much more sense if the term used to indicate this work was profit management rather than revenue management.” Focusing attention only on revenue, employment and ADR is misleading and unrealistic for Catez today.
The RM should change its name and approach : since distribution and promotion costs are growing visibly, actual profit should be at the center of the strategies and the revenue manager should also include all the other factors in the pricing and analyses. sources of profit external to the chamber. Only in this way will we have a complete perception of the hotel's progress and full development of its potential. 2 – Vary the rate based on customer LTV “We need to start looking at the LTV (lifetime value) of our customers and adapt to their needs dynamically, through as much data as possible. Hotels are getting closer but there is still a long way to go. Ideally, each of them should see a different price .” Catez underlines the importance of integrating revenue management with CRM tools that allow you to attribute greater or lesser value to guests based on their level of loyalty to the brand.
In a few simple points, Catez explains to us that the revenue management that we all know is disappearing, supplanted by a new culture , which is more aimed at profits and which brings together under its umbrella a whole series of new sources of income that have often been underestimated Denmark Phone Number until now. . 1 – Transform the RM into PM “If revenue is the only priority, how many profit opportunities are lost? We should focus more on profits than revenue. And it would make much more sense if the term used to indicate this work was profit management rather than revenue management.” Focusing attention only on revenue, employment and ADR is misleading and unrealistic for Catez today.
The RM should change its name and approach : since distribution and promotion costs are growing visibly, actual profit should be at the center of the strategies and the revenue manager should also include all the other factors in the pricing and analyses. sources of profit external to the chamber. Only in this way will we have a complete perception of the hotel's progress and full development of its potential. 2 – Vary the rate based on customer LTV “We need to start looking at the LTV (lifetime value) of our customers and adapt to their needs dynamically, through as much data as possible. Hotels are getting closer but there is still a long way to go. Ideally, each of them should see a different price .” Catez underlines the importance of integrating revenue management with CRM tools that allow you to attribute greater or lesser value to guests based on their level of loyalty to the brand.