What does it take to succeed as a Hotel Revenue Manager.
We asked Jean Francois Mourier, CEO of REVPAR GURU the same question and here are his thoughts on the subject.
We are extremely proud to have Jean Francois on board as a Distinguished Contributing Writer. He joins, Gabriele Feile, and L. Aruna Dhir.
To see Jean Francois complete profile, click here
Now the article
Hotel Revenue Manager Performance Depends on Three Learned Traits
By Jean Francois Mourier, CEO of REVPAR GURU
Day-in and day-out, we hear about the importance of revenue management software in managing hotels’ rates in the online channels. As providers of a sophisticated RMS, of course, we at REVPAR GURU are big supporters of revenue management technology. But although we see the importance of technology, one thing that will never change is that RMSs require a strategic, intelligent, knowledgeable revenue manager to optimize their performance.
Hotel revenue managers provide strategic planning and decision-making abilities—human contributions impossible for software to execute—that shape the execution of revenue management strategy.
Therefore, in order to get the most out such a system, today’s hotel revenue managers must still have a solid foundation in basic revenue management traits, both for understanding what today’s software does for them and to provide them the skills to produce potent inputs for the software to operate from. Here are three broad traits (which can be further broken down into innumerable basic skills) that are imperative for hotel revenue managers to succeed.
Monitoring
Hotel revenue managers must constantly monitor all booking channels. That’s a heady task in
today’s online booking environment. Successful managers must closely monitor:
• Online travel agency (OTA) sites;
• The emerging mobile booking channel;
• Hotel proprietary booking engines;
• All other traditional booking channels such as telephone, travel agency and group/event
booking.
Revenue managers must also monitor both macro- and microeconomic indicators. The ability to forecast booking trends and successfully manipulate rates in relation to occupancy levels demands the most precise data possible.
Analyzing
Knowing how to “act” on the data being monitored is what separates the average from the extraordinary revenue manager. Like putting together a puzzle, the pieces of data must be sorted and placed in their proper place and it takes knowledge and understanding to do so.
For example, if economic indicators are dismal, but multiple booking channels hint at a surge in average daily rates, how should the revenue manager adjust the hotel’s offerings? What next step will the revenue manager take to ensure maximum profit?
The answer to these questions first depends on proper analysis, then on successful strategic implementation, and without a strong foundation, it will be difficult for a revenue manager to do so successfully.
Performance Multitasking
Performance multitasking involves all monitoring and analyzing processes combined and done simultaneously and continuously. Even if a software system provides monitoring and analysis functions, the revenue manager must decide on the next course of action. It is up to the revenue manager to develop and implement strategy, and continue to revise it as the market changes.
Monitoring, analyzing, and performance multitasking. Along with a sophisticated RMS which updates rates through the online channels continuously and in real-time (like REVPAR GURU’s), these three traits and their attendant skillsets give successful hotel revenue managers the ability to optimize their property’s occupancy, RevPAR and ADR, no matter the external market conditions.
About REVPAR GURU
REVPAR GURU provides hotels around the world with an alternative revenue management software solution, designed to deliver maximum bookings and profits. As REVPAR GURU's custom-designed Yield Dynamic Price Engine is the only real-time revenue management software available on the market, it meets the rapidly changing needs of hotels in a very demanding business environment. REVPAR GURU’s solution offers dynamic rate optimization, real-time pricing, integrated internet and extranet yield channel management and GDS sales distribution, to increase a hotel's RevPAR intelligently and effectively, while maintaining rate integrity and automated rate parity. Since 2004, REVPAR GURU’s software solution has been used by hotels worldwide to increase occupancy and RevPAR.
Headquartered in Miami, Florida, additional information can be found at www.revparguru.com or by calling +1.786.478.3500.