Thursday 5 April 2012

The 12 Things US Revenue Managers Are Talking About Right Now

We’ve just concluded our research to prepare for TDS North America, and these are the top discussions we’ve been having with our huge network of revenue managers. Do you agree, or have we overlooked anything?

1. Getting your ancillary strategy spot on. Anyone who thinks this topic doesn’t belong (in part) to revenue managers is wrong. Revenue managers across the world are working hard to use the data available to them in house to truly revenue manage ancillary services, and are preparing to use that data to forecast future ancillary spend.

2. On the flipside- how to increase revenue by rate alone. Competition never decreases, so 2012 is the year to balance competitive advantage and real profit increase, without damaging the consumer conception of your brand.

3. A rocky economy. How do you forecast for an uncertain year, particularly in Europe?

4. Hotels! Group pricing and meeting space optimisation. It’s not there yet (I know, I’m an events organiser). We’ll be watching closely what happens in Vegas over the next 12 months for tips and tricks on this at our next revenue management conference.

5. Better segmentation. Why, oh why, is this woeful subject back in our minds? Revenue managers are telling me their segmentation strategy hasn’t been looked at or redeveloped in months/years. So which segments have the greatest demand and potential now (not two years ago?)

6. No Budging on the Budget. budget restrictions and cutbacks mean working out a better way to revenue manage. Options for this and why they might or might not work for you (including clustering).

7. The changing role of the revenue manager. a nostalgic look back, and a prospective foot forward to what the role really means, and how you need to react to keep moving upwards.

8. All the single ladies. Revenue managing an individual property- either within a chain or as an independent. Revenue managing with a distressed budget and dealing with a non RM focused CEO.

9. How do customer reviews impact price? Data scoring your reviews against your room or package rate.

10. All that glitters isn’t gold. Marketers, show us the true value of social media, mobile and website re-design- how can they actually make money, and what’s the honest ROI?

11. Mobile & money. Is it acceptable to have different pricing tiers depending on the platform the customer is using (ie, desktop, ipad or mobile) and is this even legal?

12. Distressed inventory- how are models like HotelTonight going to change the pricing model we have with third parties?

Have a different opinion? Tweet to me at @rosieakenhead or find me on linkedin and drop me a message, I’d love to hear your feedback.

Rosie Akenhead
Director of Events and Industry Analysis
EyeforTravel, London, UK
Direct Line: 0044 207 375 7229 (UK)
US Toll Free: 800 814 3459 ext. 7229