On 21 March 2014, I was very exciting and nervous as I got email invitation from Linkedin that I can publish my writing and I really want to share things more with others
On this post, I would like to share a subject which I has brought to a group discussion on Linkedin, it is about Revenue Management Vs Distribution Channels.
I have been involving with hotel data collection since I was a reservation supervisor in a hotel and based on that background, I am really concern on how we should analyze our business from any data that we can collect from our PMS ( Property Management System).
Actually, it is very interesting playing with figure that we have rather then reading the figure during a revenue meeting that we produce from the PMS ( Property Management System). Try to combine simple component in a simple excel sheet such as Market segments and its distribution channels and put altogether the cost of each channel such as agent's/OTA's commission, tax, service charge and credit card fee in order to get real figure of the revenue.
Then put the inventory scenario for each channel as well as rates to be implemented. Pay attention on dynamic, static and semi dynamic rates. Then we will found out which channel we would like to drive further. the previous figure and the trend has to be analyzed, then we can give a recommendation to all team concerned on what we believe and discuss also on how each channel should be driven . Ask each team about their planning on their section / department and study if the plans could be implemented and work then change them accordingly if needed.
It is important that person in charge for revenue management in a hotel should be able to describe his/her point of view and giving recommendation to all team in the revenue meeting and all team concerned have to really work out the plan which has been agreed on and monitoring the result for further references.
The main goal of this practice is improving our communication on how to improve our Regular Revenue Meeting which is mostly reading the figures so it might be a a good start for Total Revenue Management ( a cross the department in a hotel).
Having the above mentioned table ( the excel sheet), we want to present the real figure which will counting as net revenue ( after all distribution cost ) and which channel should have our attention and how we are going to do it. Let’s defined one of the channel as Travel Agent ( or Destination Management Company), this channel is mainly the job of our sales team and they need to present their plan which agent for which market for what price and for which periods and for how many rooms ( inventory). It is the same with other distribution channel, we got to have a person / department in charge for each channel. This table / template could be used also to record our previous figure,present as well as future trend for our forecasting system or the combination of them.
I realize that the hotel who has advanced system for their revenue management can get even much better template produced from the software but most of the hotel didn't have a proper Revenue management system especially in hotel in Asia.
Again, I would like to hear some feedback from more people on how they do their Revenue Meeting.