Three decades of revenue management: What’s next? This paper presents an overview of the future of revenue management (RM) based on interviews conducted with industry leaders around the world. | A Day in the Life of a Regional Revenue Manager Paul Chappelle Copyright © 2011 by John Wiley & Sons, Inc. All rights reserved Responsibilities of a Revenue Manager Forecasting – Daily, Weekly, Monthly, and Yearly Explore new opportunities for revenue growth Maintenance of the various revenue channels into the hotel Managing the reservations department Acting as the liaison between the sales and operations departments Having fun Copyright © 2011 by John Wiley & Sons, Inc. All rights reserved Forecasting When creating forecasts, a revenue manager should take into consideration: History Local events Competition Weather Seasonality Pickup and departure patterns of conventions Local and regional economies Copyright © 2011 by John Wiley & Sons, Inc. All rights reserved Forecasting Cont. After the forecasts have been completed, they are used to: Project the amount of variables costs associated with running a hotel Includes: labor Set goals for the sales and catering managers Forecast the entire company's projected revenues and expenses Copyright © 2011 by John Wiley & Sons, Inc. All rights reserved Forecasting Cont. Forecasting and tracking takes up 75% of a regional revenue manager’s time The other 25% is spent on the other responsibilities listed previously Copyright © 2011 by John Wiley & Sons, Inc. All rights reserved Revenue Channels of a Hotel A key responsibility of a revenue manager is to ensure that the revenue channels are set up and functioning properly. Revenue channels include: The hotel brand’s generic 1-800 vanity number and central reservations office The convention and visitors bureau The local hotels reservation and front desk The internet The Global Distribution System (GDS) Copyright © 2011 by John Wiley & Sons, Inc. All rights reserved Revenue Channels of a Hotel Cont. The GDS is the most critical revenue channel This is the system used by travel agents to make reservations at the hotel It contains information about rates and availability at a hotel | A Day in the Life of a Regional Revenue Manager Paul Chappelle Copyright © 2011 by John Wiley & Sons, Inc. All rights reserved Responsibilities of a Revenue Manager Forecasting – Daily, Weekly, Monthly, and Yearly Explore new opportunities for revenue growth Maintenance of the various revenue channels into the hotel Managing the reservations department Acting as the liaison between the sales and operations departments Having fun Copyright © 2011 by John Wiley & Sons, Inc. All rights reserved Forecasting When creating forecasts, a revenue manager should take into consideration: History Local events Competition Weather Seasonality Pickup and departure patterns of conventions Local and regional economies Copyright © 2011 by John Wiley & Sons, Inc. All rights reserved Forecasting Cont. After the forecasts have been completed, they are used to: Project the amount of variables costs associated with running a hotel Includes: labor Set goals for the sales and catering managers Forecast the .
