This is a guest post by Jeong, pronounced “Jung”, Pyon. He is the Director of Revenue at the Trump Vancouver, Canada.
Are opaque channels friends or foes? This may not seem like a serious question at first, however, most often revenue managers must defend themselves against rest of the team when using channels such as Hotwire & Priceline Opaque. Those battles almost make revenue managers feel like lawyers in a courthouse defending a criminal. Compromises are made, and hotels usually agree on using opaque strategy to get rid of “last remaining rooms” at “anything above the cost”.
This is revenue management hypocrisy at its very best. Often, non-revenue managers want to take group business at a rate that is too low to be true for the sake of ‘building a base’. That’s not all. ‘Fantastic’ last room availability rates are provided to negotiated corporate accounts, and contracts are signed with Wholesale FITs such as GTA and Tourico often without consulting with revenue managers. [Read more…]