Hospitality revenue management teams have long been expected to manage demand. But for the hospitality industry’s new climate in 2021 and beyond, revenue leaders will need to do more than manage demand—and now it’s up to hoteliers to find creative ways to align their marketing and revenue teams to generate new business.
Break Down (or at Least Align) the Silos
Hospitality teams can no longer act in silos. Hotel revenue management and sales & marketing teams need to act as allies, now more than ever before, and you’ll need all the tools in your box to make it happen. Make sure you’re using revenue management software with advanced, automated capabilities so while the analytics are done in the background, you can focus on everything else.
This is a win-win for revenue and marketing teams. Revenue has real-time insights into market behavior and potential clientele to adjust the strategy to something that actually works, not just what used to work. Consider using revenue management software that provides a powerful layer of data for greater opportunities.
Share Demand Intelligence
For too long, there has been an industry-wide perception the sole responsibility of revenue managers was to manage demand. How many times have you sat in on revenue meetings to see the divide?
Revenue managers look at the sales & marketing team to see what business they’re bringing in. Sales & marketing managers look at the revenue management team to bargain on average daily rates (ADR) and rate parity. Enough of this back-and-forth. It’s time to work together to generate demand. Everyone plays a role.
Whether you’re a family hotel by the seaside, trendy city boutique hotel, or well-known branded resort convention center, you can use demand intelligence to look at relative search volume in your market—not just what’s going on at brand central on the other side of the country, but what’s going on in your neck of the woods.
It’s Not About Numbers—It’s About People
An STR report can tell you about occupancy, ADR, and revenue per available room (RevPAR) compared to your competitive set. You’ll see the numbers and percentages, as well as the indexes and changes, compared to last week and last year.
Still, it’s important to reflect on whether you’re seeing the people behind the numbers. You can accomplish more when you look at people, not just numbers, when you lead with heart as a hotelier. Better yet, you gain insight into how to lead the industry with your competitive set.
Hotel Revenue & Marketing Unite
This current period of disruption in the hotel industry is the time for revenue and marketing managers to work together to reimagine market segmentation. Review early market indicators like travel search and travel intent, but look deeper within micro-market segments like travelers looking for local staycations, those who are more comfortable traveling by car, or individuals looking for long-term hotel stays.
Within the leisure segment, revenue and management teams can drill down into micro-market segments of local staycationers. You can look for couples seeking a romantic getaway or young families looking to get out of the house. If you are a pet-friendly hotel, that’s another great micro-market within the local staycationer segment to encourage guests to enjoy your amenities with their furry friends.
For branded hotels, hoteliers need to use all the tools available to them and supplement those commercial endeavors with property-specific tactics. Use different communication channels for different purposes. A hotel’s direct website is a showcase for highlighting how your hotel differs from others in the brand or what makes your hotel different from your competitors.
E-mail existing customers to stay in touch and keep at the top of their minds. Online travel agencies, often thought of as the frenemy we know, are a great way to reach out to new guests and potentially convert them to direct bookers. Get creative on social media by using the latest features on Instagram and hottest trends on TikTok to spread the word and solicit feedback for your hotel.
Free Report: Revenue Management Outlook Survey Results 2022
The new generation of commercial leaders applying their skills to the area of revenue management, and beyond, will have to master both the art of managing and generating business. Aligning your hospitality revenue management software with your marketing strategy offers your team deep industry knowledge and innovative data-driven insights. With that information, you can lead your industry through trusted, precise, and pragmatic business decisions to transform your revenue and services from within.
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