Five common mistakes that revenue managers make
In short, Revenue Management is about taking control of supply and demand and in this way increasing the company's profitability. A revenue manager's tasks are often carried out in close collaboration with the hotel management and the commercial team, which includes responsibility for sales and marketing. The demand for personnel with analytical skills, commercial and financial knowledge as well as technical expertise is great in the hotel and visitor industry. Most rightly hold hard in their much appreciated revenue managers for a talented revenue manager is really the gold host. Just as with most other professions, one can always improve further by sharpening their skills. Here are some short points that deal with some common mistakes that a revenue manager can make in their work and some tips on how to deal with them.
Mistake number 1: Lack of internal communication and understanding
Communication and collaboration within the commercial team is inadequate. The sales, marketing and booking department, and sometimes even the hotel's CEO, do not know or do not understand the revenue management strategy. This creates uncertainty throughout the organization, so as a revenue manager, it has a great responsibility to continuously involve and communicate the strategy and the tactical measures.
Make sure that other functions within the hotel are included on the train so that they both understand and are involved in the strategy for revenue management and the tactical measures being taken. Through increased internal communication about the strategy, understanding of staff throughout the hotel is achieved.
Mistake number 2: Too little time is devoted to the strategy work
Almost all time is spent on tactical pricing, ie. on putting price up / down and opening and closing price codes, which means that there is no time left for the strategic and structural pricing.
Set aside time also for strategic and structural pricing. It is at least as crucial for a successful result as the tactical one.
Mistake number 3: Inadequate data base
A strong pick-up does not automatically mean that the price should rise and a weak pick-up does not mean the reverse either.
Pick-up analysis at the segment level is something that is not completely unusual for it to be careless or not. Inadequate data, including Regarding the segments, revenue manager risks risking price decisions on incorrect grounds.
Make sure you have accurate data for your decisions so that you do not make a wrong decision based on incorrect grounds.
Mistake number 4: Lack of documentation leads to vulnerability