Company insight
The new reality of revenue management
Founded in 1996, Cendyn is the leading cloud software and services provider for the hospitality industry, helping hotels become more adept in marketing and revenue management operations. Kevin Duncan, senior director of strategic product initiatives, explains how Cendyn is helping revenue managers forecast and adapt their revenue streams to optimise profit during testing times.
What products and services does Cendyn specialise in?
Cendyn is the leading innovative cloud software and services provider for the hospitality industry. Its software solutions drive sales, marketing and revenue performance for tens of thousands of hotels across the globe, with a focus on integrated hotel CRM, hotel sales and revenue strategy technology platforms.
What effect has the pandemic had on the role of the hotel revenue manager? Historically, revenue managers have used their technology platforms’ automation and algorithms to support revenue success. However, during this uncertain time, the human element of revenue management has become even more critical. With no relevant historical data, technology systems that focus on rigid automation have struggled to adapt without human intervention. So far, it is clear that revenue managers who can interpret data, adapt and make quick decisions are the most likely to succeed. With below-average hotel occupancy rates, expectations have changed, which means that revenue streams that were once a given are no longer available. While the world waits for consumer confidence to rise and government guidelines to ease, revenue managers must collaborate with other departments to leverage additional revenue streams. More than ever, revenue managers need to look closely at how they can be flexible and innovative with their resources. Repurposing or re-evaluating projects will help drive the bottom line and shape how each business is run. With a main objective of achieving total revenue management, managers can leverage their data, adapt
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their revenue streams, strive to achieve profit optimisation with what they have, forecast as best they can, and utilise both their human intuition and the flexibility within their technology systems to continue pushing forward.
How can revenue management tools help hotels prepare for recovery?
The revenue management system (RMS) you typically rely on for day-to-day tactical decision making can also be an invaluable tool for planning your recovery strategies. Here are six ways to strategise with your RMS when scenario planning: ■understand your seasonality ■look at booking windows ■compare market rates ■measure group impact ■review your segments.
For more detail on this, visit Cendyn’s resource library.
How can revenue management and marketing functions work in unison, and what are the benefits? Both marketing and revenue management hold the keys to data that can drive more hotel revenue. When you open dialogue between the teams and integrate their tech systems, you create a dynamic duo that will propel your hotel towards sustainable success and create the kind of synergies that result in profitability. ■Forecasts: Maintaining open lines of communication between revenue management and marketing creates a reciprocal relationship that leads to more accurate forecasting and effective marketing. The marketing team can rely on revenue management’s demand
forecasts to determine when to create promotions and what segments to target for the greatest impact. Keeping revenue management informed of when marketing places offers leads to better, more accurate forecasts.
■Booking pace: Consistent interaction between the two teams creates an effective revenue generation partnership, reducing any gaps between marketing initiatives and revenue management pacing goals. When the marketing team has access to booking patterns, they can better plan initiatives in the CRM and drive demand.
■Pricing: With the right automated software and data-driven strategies, revenue managers set rates designed to optimise revenue according to changing market conditions and demand. Strategic revenue management also considers the total value of each guest from all available revenue streams. When you combine this data with the granular level of guest segmentation available from marketing in the CRM, you can create innovative packages with differentiated rates.
■Higher conversions: Revenue management data points you towards the guest segments and channels that may produce the greatest profitability, while marketing’s data on customer preferences can identify the best ways to capitalise on those opportunities.
■Optimised campaigns: An RMS also tracks the hotel rates of your competitive set on a weekly and even daily basis. This information allows marketing to become more proactive with their campaigns, adjusting them at the last minute if necessary to remain competitive. ●
www.cendyn.com Hotel Management International /
www.hmi-online.com
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