How important is it to get better results in your hotel business from managing revenue more effectively?
Here are 4 reasons and 1 bonus reason on why you should outsource hotel revenue management
1) Enjoy more time to focus on your business
The role of revenue manager includes overseeing the occupancy rates, average daily rates (ADR), rate adjustments, and forecasting market trends in order to maximize income. A revenue manager must spend significant amounts of time analyzing reports and data in order to make educated decisions affecting a hotel’s revenue performance. If you do not have enough staff members or trained professionals in-house, it could be complicated – if not impossible – for your organization to keep up with these tasks while still focusing on their other areas of responsibility, such as sales and marketing activities.
By outsourcing this function, you can significantly reduce the time and costs spent on hotel revenue management while ensuring your property is maximizing its revenue potential.
2) Access specialized skills and expertise
Many of the functions related to hotel revenue management require advanced skills and expertise that can be difficult for owners or general managers to develop themselves. Hiring a dedicated professional to take care of these areas allows you to focus on growing your business by marketing your property, selling over the phone, hosting meetings. This will allow you to efficiently run your business without having specialized knowledge in various areas such as market research, forecasting trends, negotiating rates with OTAs (online travel agencies), optimizing prices through demand pricing strategies. You can either outsource all activities related to revenue management or selectively choose only those functions that are most important to you. For example, if your company is starting out and does not have a website, you can hire a revenue management specialist to handle online distribution channels such as OTAs while maintaining the other areas of responsibility in-house.
This will allow you to focus on growing revenue through other means without spending too much time learning about these complex processes.
3) Get access to more intellectual capital
If there are positions within your organization that require specialized skills and expertise – but they do not have many responsibilities outside of those areas – it may be beneficial to focus those resources on revenue management functions rather than having those individuals spend their time on administrative tasks or managing lower-level employees. By hiring someone who has been trained specifically for revenue management, you can ensure your hotel is making the greatest intellectual capital to capture all possible income scenarios while freeing up time to focus on other areas of business.
Hiring lower-level individuals without extensive experience will lead to an excessive amount of turnover and training costs.
When you hire an external team dedicated to maximizing revenue, not only will you save yourself time, but this can also be a cheaper solution than training in-house employees in these skills. While it may seem more economical in the short term to hire someone who already understands how to handle revenue management tasks, if they are not explicitly trained for working at hotels (and there is no senior person overseeing their work), then they will probably not be 100% optimal when it comes to making decisions that affect hotel revenues.
You might be better off having a specialist or supervisor with experience from Hints4hoteliers oversee revenue management functions in-house rather than hiring someone who has been trained specifically for this area of expertise.
Bonus: Save time
In addition to saving you money, outsourcing the revenue management function can also save you much time in terms of administrative work, planning meetings, and evaluating reports. This allows senior-level employees to focus on higher-value activities such as growing hotel business through marketing activities while ensuring the company is maximizing profits by making data-driven decisions through forecasting trends and analyzing reports. By working directly with a dedicated team member for this function, you will have more time to dedicate towards strategic initiatives that help grow your business without performing tasks that can be outsourced more efficiently.
By working directly with one of our dedicated team members for this function, you will have more time to dedicate towards strategic initiatives that help grow your business without performing tasks that can be outsourced more efficiently.
If you’re interested in outsourcing revenue management functions for your hotel, contact us at Hints4Hoteliers to see how we can help meet your needs! We provide services such as rate parity implementation, OTAs distribution, market research and forecasting, weekly pricing reports, occupancy analysis reports, loyalty program implementations & reviews, channel distribution strategies, customized reporting dashboards, direct booking support, competitor benchmarking , audits, and much more! Please find out how our comprehensive suite of solutions can help improve your bottom line today!