Revenue Management in Real Life: The Art of Saying No
As a seasoned revenue manager and a parent, I've come to realize that the principles of revenue management aren't confined to the boardroom or the hotel lobby—they extend right into our living rooms.
Today, let's dive into the art of saying no and draw some amusing correlations between revenue management and real-time parenting with my two little darlings, Rafa (10) and Hayden (9).
Setting Boundaries: The Hotel and the Home
Imagine your hotel as a bustling kindergarten. Your guests, much like children, have high expectations and boundless energy. As revenue managers (RMs) and general managers (GMs), we often feel like the teachers trying to maintain order amidst the chaos.
Saying no is crucial—it sets the boundaries that keep everything running smoothly. Similarly, at home, Rafa and Hayden constantly test limits, and just like in revenue management, saying no helps establish a structured environment where they can thrive.
The Upsell: Negotiating with Kids
In the hotel world, upselling is a fine art. It's about knowing when to offer that room upgrade or late check-out. At home, it's about negotiating bedtime or screen time. Rafa wants to stay up an extra hour, and Hayden wants more video game time. My response?
A firm but fair no, often followed by a counteroffer (hello, 15 more minutes). It's not about shutting down requests but about managing them strategically. The same goes for guests—knowing when to say no while offering an alternative that enhances their experience.
And to be honest....sometimes you lose!!!
Managing Expectations: Guests and Kids Alike
Revenue management involves managing expectations. Guests expect a seamless experience, and so do kids. Hayden expects his favorite fruit every morning, and Rafa wants a ride to her friend's house right now.
Learning to say no, with a sprinkle of humor, is key. "Hayden, we're out of that fruits, but how about an egg?" or "Rafa, I can't drive you now, but we can plan for later."
It's all about redirecting expectations without causing a meltdown—a skill every RM masters when dealing with overbookings or high-demand periods.
The Power of No: Maximizing Value
In revenue management, saying no can maximize value. By refusing a discounted rate for a high-demand period, we ensure the hotel operates at optimal revenue. At home, saying no to every whim ensures that Rafa and Hayden understand the value of what they have. "No, you can't have a new toy every week, but we can save up for something special." This not only teaches them the value of money but also instills patience—an invaluable lesson both in life and in business.
Conclusion: Balancing Act
Whether managing a hotel's revenue or navigating the daily adventures of parenting Rafa and Hayden, the art of saying no is a balancing act. It's about setting boundaries, managing expectations, and maximizing value while keeping a sense of humor. After all, both our guests and our kids thrive in environments where there are clear guidelines and a bit of fun along the way.
In both realms, the strategic no is not just a refusal but a step towards a more structured, valuable, and enjoyable experience for everyone involved. So next time you're faced with a difficult decision, remember: a well-placed no can be just as powerful as a yes.
And lets be honest....we are in it for the long game....who cares about short term yearly budgets anyhow lol :-)
