Sensational presentations on Tuesday, November 10th, by Aída Muñoz, Director of Revenue Strategy at HIP Barcelona, and Herminio Haro, Director of Revenue Strategy at the Mandarin Oriental Emirates Palace in Abu Dhabi. The talk was moderated by Pablo Torres, Technical Director of the Advanced Program in Total Revenue Management at the University of Alicante.
The session was part of the University of Alicante's OPEN TALKS series, which focused on total revenue management in hotel rooms. The main topics were:
-Direct sales management
-Packaging
-Inventory maximization
As points to highlight among the many concepts that both discussed:
Direct sales have grown significantly this year due to the decline in tour operator sales. Hotels that have invested the most in SEO and in strengthening their own channel and website in the past have been the biggest beneficiaries. But it's not just website management that alone; direct bookings continue to play a key role, helping to build loyalty and attract repeat customers.
-We must banish the idea of "I'll stop selling via OTAs because it costs me money, and I'll sell it myself because it's free." The direct channel requires investment. Digitization. Training. We must find a balance between different channels. The traditional love/hate relationship with OTAs must be one of collaboration. Each channel must generate its share.
-Bundling: This is a very attractive way to generate extra income, even through tour operators. However, you shouldn't be tempted to discount too much, especially for rooms. 5-10% maximum, and calculate the remainder with the appropriate tools based on the remaining added value, taking profitability into account.
The package can combine elements from different areas (rooms, F&B, spa) to generate additional revenue for other departments. It should be a cross-functional tool.
-Inventory: You can generate revenue at any property. This can be achieved by using existing inventory or by modifying it, known as "floating inventory" (creating ad hoc rooms and rates for a specific client).
-Attribute-based selling: This has been talked about for some time, and it will arrive when the technology is ready, probably led by large chains and OTAs. We're talking about selling rooms based on certain characteristics or details, without necessarily focusing on the nomenclature in the system.
The final message is that the revenue manager has long since ceased to be someone solely responsible for charging room rates. They must now have significant influence over the commercial decisions of establishments. They must be creative, diversify, and add value. They must influence and decide, together with other department heads, to improve and maximize revenue at all levels.
