Yesterday I was talking to one of my uncles who happens to be Director of AZY Stays. He was quite worried.
When I asked for the reason, he told me about how the globe is changing rapidly and how approaches to different products and services are changing day by day, in the current pandemic situation.
He also mentioned that this change is not only happening at the organizational level but also at micro-organizational levels. For instance, he gave his own example, where he recently gave a counseling session to managers of their revenue department.
After that session, he realized that the problem was not the depression from job pressure, but the worry about the inability to manage revenue. Later, when he researched on his own, he got to know that there is a a change in Hospitality Revenue Management approaches.
So, let us begin from scratch to get you a clear idea about this in upcoming passages.
Revenue Management in any sector is strategic distribution and pricing tactics that you use to trade off your product or services to give it a good position or reposition it in the market.
In a nutshell, it is effective management of your sales.
Hospitality Industry before the current pandemic situation had been following same strategy tactics like good SEO rankings, pictorial brand awareness and strengthening, well placed offers at premium locations, with provision of price optimized services.
But the current pandemic has changed the entire scenario, where digitalization and social distancing are the trending talks. There is definitely a clearer picture drawn here which shows that the sectors in this recession period that are going to be affected primarily are hospitality are where there are chances of the vulnerability of budget and health to a greater extent.
Hospitality Sectors comes first. This is because spending on branded cusines or having a discounted trip to a premium location is heavy on pockets of most of the folks around the world. With job loss and economic downfalls, this makes the scenario worse.
Thus, what the global economies demand now and what the companies need badly is a new approach to Hospitality Revenue Management. In addition to that accounting 10% of GDP of a country, they play as one of the important roles in developing our economies.
IQra Info Services has been partnering with more than 5000 businesses and corporates for the last 11 years and giving them indispensable services and a concrete position with some of them being grand successes. Having such rich experiences of rising companies to flying heights, today industry leaders from IQra brings forward tips for next-gen revenue management.
Read here more about IQra Info Services
Before we jump on to our topic here are some articles for post-pandemic hotel management.
3 Digital Tips for next-level Revenue Management
Having an Upgraded Integrated System: Now, an integrated system would have done, but why I am giving importance to this part by adding an upgraded system? It is because coordination has never been a problem for the hospitality sectors. Even some of the sectors turned into premium brands due to strong coordination in their activities.
But, earlier this coordination was observed at macro-levels only. But, today the hotels need to know how much people are giving importance to niche branding and how niche management is the top notch demand. Especially, in this sectors people are ready to loose their pockets if that micro division for which a person or entity is ready to spend satisfy then, not the overall service.
Thus, Upgraded Integration, meaning instead of bringing every department together at once, starting with one or two, and once there are some small successes and takeaways, applying it to other departments and then the whole business is the key strategy to sustain and shine.
Change in profit measuring metrics: RevPAR, or revenue per available room, is one of the traditional and still the most instilled metrics in the industry. But with continuing of the atrocious pandemic, businesses are going niche in business as well as in their physical foundation. This enhances safety along with managing costs. Giving a look to it, what profit metric could be benefiting or effective for profit planning and management is ProfPASF or Profit per Available Square Feet, which helps you go rally deep down and understand as well as engage your audiences.
Change in Market Approach Strategy: Approach Strategy basically includes market behavior, service elements you are using currently. With the enhancement of social media ( where volumes of internet users are increasing @ 1000s per day) and technology (usage of automated services and robots for provision of various services) there is a need to change the market strategy.
It is because with increasing expenses and having a thought of profit management amidst this crisis, having a well-directed macro as well as micro-investment is the need of the hour.
Well, I take an adieu from you. From here I drop down the decision for you:
Be an next-gen optimizer
Be an old timer struggler
Understanding Revenue Management: https://blog.snapshot.travel/understanding-the-basics-of-revenue-management.