The "Total Revenue Management: Hotels" session took place within the framework of "OpenTalks: Successful Strategies in Tourism," organized by the Good Decisions Club and the management of the Advanced Program in Total Revenue Management.
The event featured participation from Aida Muñoz, Director of Revenue Strategy at HIP Investment (a subsidiary of Blackstone, the world's largest hotel investor), and Herminio Haro, Director of Revenue Strategy at the Emirates Palace Mandarin Oriental in Abu Dhabi.
These are some of the main conclusions of the day, as summarized by Pablo Torres of Torres Consulting:
Direct sales have grown significantly this year due to the decline in tour operator sales. Hotels that have invested most in SEO and in strengthening their own channels and websites 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 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.
Packaging: 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, likely led by large chains and OTAs. We're talking about selling rooms based on certain characteristics or details, without necessarily focusing on the system's nomenclature.
The final message is that the revenue manager has long since ceased to be someone who was solely responsible for charging room rates.
Now it must have great influence on the commercial decisions of the establishments.
You have to be creative, diversify, and add value. Influence and decide, together with other department heads, to improve and maximize revenue at all levels.
