Ignorance Means Risks: What Revenue Management Means for Today’s Hotels and the Costs of Neglecting It
The following is an excerpt taken from SiteMinder’s blog.
It’s important to consider that the demands of revenue management have drastically changed. With rising costs, evolving guest behaviours and the varying types of accommodation businesses that have emerged, revenue management now means different things to different properties.
For instance, Diego De Ponga, former Corporate Director of Revenue Management at Palladium Hotel Group and now CEO at Port Hotels, believes the classic definition of revenue management is unrealistic in today’s market, where selling inventory demands more flexibility.
I define revenue management as a way for accommodation properties to earn more,
says De Ponga. These days, it would be impractical to use the classic definition, as I will sometimes sell at a less ideal time, at the right price. If you’re a revenue manager for a property with 100 rooms, your task is to maximise profits from all those rooms, regardless of market conditions.
De Ponga’s nuanced perspective on how revenue management works in today’s landscape is a result of years of experience in the field. But for many of the world’s independent accommodation providers, revenue management remains unfamiliar territory, often marked by misconceptions and misguided practices.
Continue reading the full article here.
About SiteMinder
SiteMinder Limited (ASX:SDR) is the name behind SiteMinder, the only software platform that unlocks the full revenue potential of hotels, and Little Hotelier, an all-in-one hotel management software that makes the lives of small accommodation providers easier. The global company is headquartered in Sydney with offices in Bangalore, Bangkok, Barcelona, Berlin, Dallas, Galway, London and Manila. Through its technology and the largest partner ecosystem in the global hotel industry, SiteMinder generates more than 120 million reservations worth over US$50 billion in revenue for its hotel customers each year. For more information, visit siteminder.com.
Maria Cricchiola
Director of Brand Communications & PR
+61 2 9056 7415
