In the last post “Revenue Management: The Future is Now” the four fundamentals to optimal revenue was outlined as Talent, Strategy, Tools and Execution. This post will discuss Talent and what makes a great revenue management professional.
In reviewing 200 postings for Revenue Management positions over the last 18 months it is apparent that there has not been a great deal of forward movement in the roles of revenue management. The majority 95% are focused on rooms revenue, 80% require revenue managers to be highly systems oriented and 100% highly leverage revenue managers for reporting.
With this tactical focus it is no wonder that revenue managers have not been recognized consistently as a direct report to the General Manager.
As an industry we are missing a tremendous opportunity to develop a key role that will drive the business forward. In order to move in the right direction the focus has to shift to acquire the right people that deliver on the needs of the business. Just as finding the best Sales Professionals is critical to growing the business so is finding the right Revenue Management Professional.
Here are core elements to look for to find a strong revenue resource:
- Competitive: a passion to win;continuously striving to grow your business
- Collaborative: the ability to communicate well at all levels of organization
- Analytical:data drives decisions; the ability to analyze data and identify opportunities to improve
- Supply & Demand: understanding of micro and macro economic factors that influence your business
- Web Savy: the internet touches every aspect of the hospitality; knowing how to leverage it is a crtical business need
- Business Acumen: it all comes back to your hotel’s EBITDA; reading financial statements and being able to interpret to make good business decisions
- Strategic: you need to see the forest before the trees; every revenue team needs to think strategic before implementing tactics
If you find someone with these factors in their make up then you will have a revenue leader on your team that will relentlessly pursue revenue growth. When you hire this person you will want them to report to the GM to encourage a healthy debate with the Director of Sales, Director of Rooms and other players on your team.
Now that you have found the right person focus them on the right things.
- Product Definition
- Channel Management
- Pursuing New Revenue Streams
While I would recommend getting your rooms division in order first as the most proftiable revenue center these same focus areas apply to all revenue centers.
Once your rooms division is in rythm with a repeatable process it is time to expand the scope of your revenue management. Revenue Management can be applied to all areas of the hotel or resort; move to the next profitable revenue center first and move forward from there. Revenue Centers that will benefit from revenue management include:
- Conference Services/Catering
- Food & Beverage
If you look across the industry you have to give credit to some of the major brands who have figured this out. Outside of a select set though the status quo continues.
If you want to pursue a career in the revenue management area assess yourself honestly against the above and work towards these targets.
If you are a hotel owner or General Manager assess your team honestly; do you have the right people to drive your business?
If you liked the article sign up to get updates