Key Takeaways from Virtual Roundtable for Senior Revenue Management Executives
Creating a Total Revenue Management (TRM) Culture
In a virtual roundtable discussion hosted by HSMAI Europe on Thursday last week, senior revenue management executives gathered to delve into the evolving landscape of Creating a Total Revenue Management (TRM) Culture in the hospitality sector. The discussion was moderated by Shumi Khan, SVP Business Intelligence & Revenue Management Accor Hotels and Chair of the HSMAI Europe Revenue Optimization Advisory Board.
After a short introduction to the topic by Pär Augustsson, VP Total Profit at Strawberry (formerly Nordic Choice Hotels) and member of the HSMAI Europe Revenue Optimization Advisory Board, the participants shared their experience and brought up crucial topics aimed at driving revenue growth and enhancing operational efficiency.
Participants and Introduction to the Topic
Attendees included seasoned professionals from prominent hospitality chains, each bringing a wealth of experience and perspectives to the table. Under the guidance of Shumi, the discussion unfolded with a focus on key areas of concern and opportunity within revenue management.
Key areas of concern and opportunity
Alignment on the Importance of Optimizing Add-ons and Products:
Participants unanimously agreed on the criticality of optimizing ancillary services and products to maximize revenue potential. Understanding the data associated with new systems emerged as a priority, ensuring informed decision-making in revenue management practices.
Challenges and Solutions:
Amidst deliberations, challenges such as the lack of benchmarking and integration issues among disparate systems surfaced. However, innovative solutions were proposed, including a shift towards attribute pricing and the cultivation of a culture of total revenue management.
Strategic Imperatives
Several strategic imperatives emerged from the dialogue, emphasizing the need for:
1. Driving Revenue Culture:
Encouraging a revenue-centric culture within hotels and on-property, identifying unique revenue streams, and fostering creativity in revenue generation.
2. Technology Enhancement:
Recognizing the importance of investing in robust technological solutions to address system compatibility and data integration challenges.
3. Training and Skill Development:
Prioritizing training and skill development initiatives to empower teams to execute revenue management strategies effectively.
4. Starting with Basics:
Acknowledging the significance of incremental improvements and leveraging even the simplest strategies to drive revenue growth.
5. Learning from Other Industries:
Drawing inspiration from successful models in other industries, such as Disney and Universal waterparks, to understand guest demand and enhance on-property spending experiences.
As the roundtable drew to a close, participants left with a renewed sense of purpose and a commitment to implementing actionable strategies to drive revenue growth. By embracing innovation, fostering a revenue-centric culture, and leveraging technology effectively, revenue managers can navigate the evolving hospitality landscape with confidence and agility, and develop a deeper understanding of the Total Revenue Management strategy within their organisation.
Next Steps by HSMAI Europe
HSMAI Europe will bring this important topic to the local level, continuing the conversation and facilitating further collaboration among revenue management professionals.
About HSMAI Region Europe
HSMAI – Hospitality Sales and Marketing Association International – is a global organisation founded in the US in 1927. HSMAI Region Europe is the European arm of the organisation. HSMAI Europe aims to be a key influencer, pioneer and the go-to industry resource for professional development, commercial strategies and sustainability in the hospitality, travel and tourism industry. www.hsmai.eu.
