The ever growing proliferation of data sources available to the revenue manager is defining the future direction of the role. In advance of ‘Revenue Management 3.0-Where Next?’ we spoke with Pavan Kapur, SVP Global Gaming at Nor1 about what opportunities these data sources present and how the hotel industry needs to take action if it is to fully leverage their power.
How will the increasing sources of data available to revenue managers shape how the function operates in the future?
The fundamentals of what is driving pricing decisions will change. It will no longer be simply supply and demand that sets rates. As data is augmented by multiple sources such as weather patterns and air prices, coupled with the shift in focus from revenue management to profit management, the level of data available by segment will allow us to forecast and select the most profitable segments. And because all channels are not created equally, there will be the requirement to understand demand by segment and forecast at this level so hotels can better maximise profit rather than overall revenue.
It sounds like the job specification for revenue managers is being rewritten. How far into this transformation are we?
As an estimate, we are not even half way there yet. The biggest challenge is the collaboration of data sources. How do we merge multiple and disparate data sources? That’s going to prove fundamental to the successful implementation of this..
What do you think it will take to accelerate the speed of adoption of this shift in focus for the RM function.
As a rule, there is an awareness from hoteliers this is where we need to be but in terms of adopting this, we are way behind other industries. But as distribution gets more complex and with increased competition in the market place, it will become a necessity for hoteliers to adopt this mindset and overcome challenges if they want to optimise market share.
Pavan will be joining us at Revenue Management 3.0-Where Next’ where he will be a panellist on this 'Rev Man 3.0- Is Data Scientist the new Revenue Manager?' and providing more insights into how data science is shaping the future of the revenue management function. Read more about this industry-leading one-day event and register here www.opportunity2018.co.uk