Revenue Management – why automation rocks!
I write this article as the founder of revenue management system, Right Revenue. However, I promise this is not some veiled attempt at promoting our system. It is however a shout out to all revenue management systems as automation rocks!
Last week I wrote an article about why Revenue Managers should really be considered as Profit Managers. The role of revenue management has evolved and no longer are we considered ‘nerds with numbers’ but we are the strategists… And how do the new breed of Revenue Managers become strategists? Simple, they use automation to ‘do the smarts’; ‘crunch the numbers’ and basically do the maths, while Revenue Managers get on with the strategy.
Smart hoteliers will see automation as a positive and smart Revenue Managers know that opposite of replacing their job role, a revenue management system frees them from being dependent on spreadsheets; pulling off reams and reams of reports; trawling through rainforests of paper and allows them to think and to communicate.
Every Revenue Manager in the world understands the scenario of sitting in front of their GM or Owner, three months out and forecasting to be below budget. Fast forward 3 months and suddenly you are ahead and smashed every financial target set in front of you. “Why were you panicking?” you are asked. “How did you smash the budget?”, “How did you get it so wrong 3 months ago?” Well left alone to think and plan strategically a good Revenue Manager just does their job. It is their job to tell the management team when they are trending behind and it should be their job to work with the internal teams to turn on the magic and put plans in place to ensure they don’t fall behind budget. And to work this magic, a Revenue Manager needs a new skill: the art of communication.
Free a Revenue Manager from the nerdy spreadsheets and you free them to be creative thinkers. A Revenue Manager has a voice and it is one that needs to be listened to. Stop advertising this role by asking for someone who is proficient in excel or with a degree in maths or statistics. Instead understand that the role needs someone who can understand the logic behind the maths and decision making that a revenue management system makes, but more importantly can come up with ideas and communicate them to other departments.
No longer a ‘nerd with the numbers’ but more a ‘geek who can speak’.
Let your automated system run the calculations; do the maths; analyse business patterns; understand trend information and don’t we all love a little exponential smoothing? In turn let your Revenue Manager review the strategy; get prepared for need dates; see high demand days; run agile pricing and be the single point of truth for all other departments. I promise, this will change your business.
And to all automated systems out there I salute you! Right Revenue was born out of 20 years of passion for the hospitality industry and for all things revenue. We are one of several systems in the market and we embrace competition – sure if competition was a bad thing, we would all just be driving Fords… We love what we do and no matter which revenue system you have or you choose in the fture, remember ‘a high tide lifts all boats’. So embrace the change of automation and enjoy the benefits it brings…
(and for all things revenue, just email@example.com)