Welcome to another of our Expert Insights discussions.

Today’s conversation is looking at the various strengths and weaknesses of a Revenue Manager and the strengths and weaknesses of a Revenue Management System (RMS)

We often hear the discussion around technology replacing the human but, is there actually a choice to be made between having a revenue manager or revenue technology? Surely the ideal scenario would be to have both or maybe, the answer is, it depends.

Bringing their expertise to this discussion is Veit Meier from berner+becker, one of our Expert Partners

Veit has put some thoughts together around a SWOT Analysis on the Revenue Manager and RMS technology.

You can see a summary of the points below 👇🏻

Really hope you enjoy the conversation 👍🏻

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🎞 VIDEO CHAPTERS
00:56 Guest welcome and topic intro
01:53 Strengths of the Revenue Manager
05:54 Strengths of RMS Technology
08:06 Weaknesses of Revenue Manager
10:09 Weaknesses of RMS Technology
12:48 Opportunities of the Revenue Manager
15:18 Opportunities of RMS Technology
17:01 Threats of Revenue Manager
19:21 Threats of RMS Technology
22:25 Conclusion
27:12 Summary
30:17 Further videos and subscriber link

Below is a summary of the points highlighted:

Human Efforts in Hotel Revenue Management

Strengths:

  • Intuition & Experience: Humans can rely on years of experience and intuition to make decisions that may not be evident in the data.
  • Relationship Building: Humans can build and maintain relationships with clients, partners, and stakeholders, which can be crucial for business negotiations and partnerships.
  • Flexibility: Ability to adapt to unique situations or unforeseen challenges that may not be programmed into technology.
  • Understanding of Context: Humans can understand the broader context, such as cultural nuances, historical events, or local happenings, which might affect revenue.

Weaknesses:

  • Prone to Errors: Manual calculations and decisions can lead to errors.
  • Bias: Decisions might be influenced by personal biases or emotions.
  • Limited Data Processing: Humans cannot process vast amounts of data as quickly as technology.
  • Time Constraints: Manual tasks can be time-consuming.

Opportunities:

  • Training & Development: Continuous training can enhance skills and adapt to the changing landscape of the hotel industry.
  • Collaboration with Technology: Using technology as a tool while leveraging human strengths can optimize results.

Threats:

  • Technological Replacement: Automation and advanced software solutions might replace traditional human roles.
  • Evolving Industry Trends: Rapid changes in the hotel industry might require constant upskilling.

Technological Efforts in Hotel Revenue Management

Strengths:

  • Data Analysis: Technology can process and analyze vast amounts of data quickly.
  • Accuracy: Reduced risk of errors in calculations and data-driven decisions.
  • Automation: Routine tasks can be automated, freeing up time for strategic planning.
  • Scalability: Technology solutions can be scaled up or down based on the hotel’s needs.

Weaknesses:

  • Lack of Intuition: Technology relies solely on data and cannot make intuitive decisions.
  • Implementation Costs: High initial costs for implementing advanced revenue management systems.
  • Dependency: Over-reliance on technology can be problematic if systems fail.
  • Complexity: Some systems might be complex and require training to use effectively.

Opportunities:

  • Integration with Other Systems: Technology can be integrated with other hotel management systems for seamless operations.
  • AI & Machine Learning: Advanced algorithms can predict trends and optimize pricing strategies.
  • Cloud Solutions: Cloud-based systems can offer flexibility and remote access to data.

Threats:

  • Cybersecurity Risks: Data breaches can compromise sensitive information.
  • Rapid Technological Changes: Constant evolution of technology might require frequent updates and changes.
  • Loss of Human Touch: Over-reliance on technology might lead to a lack of personal touch in customer interactions.