Hotel revenue management is a complex, multi-disciplined undertaking. Managers must follow detailed plans and guidelines, which can seem overwhelming at times. However, the responsibility of these leaders is vital to the success of the hospitality establishment. Leadership training provides fundamental training and prepares managers for long-term success. Hotel revenue management is an increasingly vital function that involves a coordinated effort across the organization. Hotels can increase revenue by balancing demand, reservation scheduling and variable pricing.

In order for a hotel to remain profitable, leaders must set revenue goals and achieve them. For hospitality leaders to predict consumer behavior, they must use forecasts to calculate demand. Forecasting requires managers to have an understanding of data analytics and market research. During times when the economy is unstable, managers must make adjustments and re-tool their approach to achieve the overall goal. Leadership training also teaches managers to handle stress and deadlines. With an effective forecasting model in place, leading managers are better able to determine how to sell the right product to the right customer at the right time and sustain positive revenue. Revenue management requires quality leadership for successful plan execution. Revenue management training will teach you the fundamentals and strategies involved in managing a hotel or any other hospitality establishment.

Employing a revenue management strategy is perhaps the most crucial part of hotel operations. The implemented strategy will act as a reference point for managers to look back to and compare results. Successful managers in the hotel industry implement strategies built on the revenue per available room (RevPAR) formula. Revenue management training will teach how to effectively use this systematic process to advantage and increase revenue by considering demand, reservation scheduling and variable pricing. On top of comparing different pricing models and relating duration-management strategies, revenue management training offers groundwork for more advanced revenue management strategies in forecasting, group management, overbooking, and pricing strategy.

Successful revenue management strategies center on forecasted demand and control over room availability and length of stay. This is where forecasting begins to take a large role. In a revenue management strategy, forecasting can also have a positive impact on staff scheduling and purchasing. Managers rely on accurate forecasts for overall operations planning. Training programs teach how to build booking curves; account for \”pick-up\”; segment demand by market, group, and channel; and calculate error and account for its impact. A smart pricing strategy is always a great way to increase revenue. Additionally, training will stress the importance of setting prices to mirror the customer “type”. For example, customers who book a longer stay may be offered a lower rate as compared with a customer who books a room for only one night on a busy weekend. Another helpful strategy is to use several distribution channels to manage price more effectively.

Channel management is an essential tool for controlling differentiated pricing, maintaining rate fences, and increasing revenue. An effective leader will make sure to explore various distribution channels which include direct sales, agencies, and online resources. Paired together with a revenue management strategy, these techniques will help managers run a successful hotel establishment.

David Shoemaker is Vice President of Learning Solutions and Innovation at eCornell. For more information on revenue management training, leadership training, or eCornell, please visit http://www.eCornell.com

David Shoemaker is Vice President of Learning Solutions and Innovation at eCornell. For more information on revenue management training, leadership training, or eCornell, please visit http://www.eCornell.com

Author Bio: David Shoemaker is Vice President of Learning Solutions and Innovation at eCornell. For more information on revenue management training, leadership training, or eCornell, please visit http://www.eCornell.com

Category: Education
Keywords: revenue management training, leadership training