Evolving Revenue Management Trends for 2017
Corporate Director of Rooms & Revenue Management
The hospitality industry has many influencing variables to be factored in when developing Revenue Management strategies. These variables can change at any time and require strategies to be continually updated. Economic situations, weather, disposable income, travel restrictions, and political developments are all variables that contribute to such decisions. Decisions are further compounded by a new generation of travelers whose expectations and behaviors are significantly different than those of previous generations; thus impacting the daily Revenue Management strategies and decisions.
With hotel inventories being a perishable resource, the goal is to utilize all resources and booking channels in efforts to maximize daily revenues. What didn't sell tonight cannot be sold tomorrow. Revenue managers strategize to determine the optimal balance between the various segments in efforts to maximize overall hotel revenue. Through market analysis and identification of proper market segmentation, managers can effectively set strategy to include the various booking channels such as Internet bookings, corporate and association travel, mobile bookings, the various OTA's, direct bookings and so on. Current industry trends such as pushing for direct bookings through branded booking channels, creating a repeat guest and group through loyalty programs and/or member pricing programs, and maintaining market share through the use of big data providers are key components impacting the landscape of 2017.
As the old adage says, "The only constant is change". Current booking trends will evolve and consumer behaviors will change. Therefore, effective strategies need to be implemented to maximize profitability and market penetration - regardless of the size, brand, or market position.