Revenue Resources < Revenue Redistribution

Ironic title, considering distribution is at the core of Revenue Management itself. I want to make it very clear that this is by no means written to try and eliminate jobs for industry professionals or displace any form of positions within the industry that are doing a fantastic job in their roles. To those, I sincerely commend you!

However, the reality of the situation is that many are not, and that there is undeniable complacency and over-saturation of departments with revenue “professionals” who are unfit and under qualified. Therefor right now they are overwhelmed and over their heads in terms of adding value and forming strategies & analytics when it matters most.

This means that the hotel suffers and inevitably, more people will suffer as a result.

5 things that Covid-19 has taught me about the benefits the company that I work for has held for our clients during this time.

  • The data we hold has assisted heavily with insurance claims for loss of business.
  • We hold no payroll burden to any hotel/group and therefor there is no risk of ever retrenching or losing good resources.
  • A system or a contract would also be significantly lower in terms of total cost to company.
  • A system has machine learning or AI which is more effective, most of the time, than humans are at making decisions.
  • Consultants come with their own tools, systems, analytics and relationships, of which they either pay for, have developed or have used their network to create a significant cost saving across avenues for the client.

The reality is that a system or a consultancy company will cost less, does not take leave, does not call in sick, has competent staff who are leaders in the field and will maintain fantastic politics amongst dedicated resources in the hotel/group.

At risk of sounding bias, also being passionate on the topic because I know the model works and I have hotels thriving because of it, I feel that there are also phenomenal Sales, Marketing and even Reservations companies of which this same way of thinking could easily be adopted. Even better, if the various systems/consultants have strategic partnerships amongst one another!

Through this, these systems/companies directly grow in revenue and thus, size. Meaning more jobs for more industry professionals who are fueling this model and adding more value to more hotels and maintaining a pure hospitality experience on site.

The hotels themselves would then adopt a “resource light” strategy and set up a suite of systems & external companies (which works effectively in accordance with one another) to thereby run their hotel/group in terms of almost everything apart from operations.

Author – Michael Gimingham – Group Revenue Analyst TrevPAR World 

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