As Hotel Linkage Academy, we had such a great training time in Istanbul this last Saturday. The main topic was Revenue Management.
We had quite a few participants in the training; we want to thank all our hotelier friends who joined us for this occasion.
Our training included the following topics:
1-) The General Revenue Management Concept
2-) Budget in Hotels
3-) Market Segmentation
5-) Price and Competition Analysis
I think in light of the Revenue Management logical concept, this was an important training for those who participated, because all necessary topics were discussed step-by-step regarding Revenue Management.
I got 2 important results from my own training regarding the Revenue Management Logic. I am sharing the following necessities:
1-) Revenue Management is like the blood of a company. It is needed for the hotel to stay in business. Because Revenue Management is not just for revenue, but also everything that impacts revenue. This is just as important as the Housekeeping department doing their cleaning or a receptionist’s attitude and smile. If the customer is dissatisfied with anything, s/he will write a review on the Internet and this negative review will negatively impact your revenue. Or, we can think of an opposite situation, that is a personnel’s positive attitude will increase customer satisfaction; this customer will recommend your hotel both online and offline, and this will positively affect your revenue. The receptionist, sales representative or reservation staff need to make sure the information has been entered correctly and they need to understand the importance of this. From an RM perspective, everything they enter is vitally important.
2-) Revenue Management is a branch of science founded upon reading and commenting on data requiring both analytical as well as mathematical expertise. For this reason, high schools and universities offering education in tourism should require numerical classes and these should be in the curriculum.
During the training, the topic that kept coming up by hoteliers was this:
- Everyone is decreasing their prices; in such an environment, how will we increase our RevPar (Revenue Per Available Room)?
Here is our speaker’s reply, which I think was one of the most important answers of the day.
Hoteliers need to give up fighting over prices. In the end, everyone is hurt by fighting over prices.
Hoteliers need to try to create value; they should compete with each other in customer satisfaction, service quality, product improvement and increased quality.
If they don’t do this and continue to fight over prices, regardless of whether they want it to, quality will fall and it will bring in poor tourists. They will not be able to make money from any alternative or cross-sale other than the room itself.
If the quality increases and we try to create value, this will bring quality tourists and it will increase our cross-sales increasing our revenue.
It’s not possible not to incorporate this answer.
As hoteliers, we need to confess this. Creating price breaks is easier for us.
To create added-value and increase quality is much more difficult
We have two choices in front of us; either we will decrease our prices by pressing a couple keys on the keyboard and will save the day or we will think about increasing the quality and creating added-value and will develop projects, train, work, get tired and change our future as well as the fate and future of Tourism.
It’s up to you.