Do you have a commercial team or separate functions?

Lack of alignment leads to loss of profit

It is not only getting harder to capture the revenue that the hotel needs to stay profitable. It is also more difficult than ever to find the right team members, with the right skills and knowledge, since all hotels are competing for the best people.

Many hotels struggle with sales, marketing, and revenue management working in silos which often cause more problems than benefits. Lack of alignment towards the overall goals creates much contradictory work which slows down the process and increases the costs.

Not working as a team as well as confusion about the accuracy of data will make decisions harder and lead to missed opportunities, increased costs and loss of profit.

Common problem root causes

  • Goals and targets are not aligned between functions

  • Lack of clear leadership

  • There are no processes for planning and follow-up

  • Revenue management spends a lot of time on non-profit activities such as compiling reports for the GM and other departments

  • Reservations convert business poorly due to lack of guidelines, updated forecasts and accurate data

  • Clear guidelines and policies are missing and leads to inefficiency

  • There is no overall pricing strategy

  • Tactical pricing is not based on facts and timely information

  • Marketing is spending money on campaigns when the hotel does not need any more business

  • There is no annual marketing plan based on market demand

  • There is no follow-up on return on marketing spend

  • Sales spends unnecessary time on admin, compilation of reports and on preparations instead of meeting customers 

  • Sales spends time on the "wrong" customers

  • Sales contract customers that are not profitable for the hotel

  • There are no guidelines from revenue management to sales

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How you can fix it

The first step is to clarify that bringing in the revenue to a hotel is a teamwork and set the overall goals for the revenue team. If you have individual goals and targets then they have to be aligned with the overall goal. Emphasize teamwork and get everyone to become committed to the team goals.

The second step is to organize the work. Set guidelines, policies and a meeting schedule. Define clear roles that is needed to reach the goals. If you have job descriptions they need to be aligned to the team goals. No more silos.

The third step is to set a number of strategies for pricing, distribution, marketing, contracting base business, and other strategies that will be part of how you are going to reach all goals. To be able to find the right strategy, you need to compile a lot of data, so your decisions will be based on facts. It is a tedious job, but you better create your strategy based on facts rather than a hunch.

Do you want your team to bring in more profitable revenue?

If you are struggling with getting your team to become more productive, we would like to suggest a meeting to discuss how we may be able to address your issues and what is causing them in order to be able to build a revenue team ready to execute a plan for success.

 

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