Klaus Kohlmayr, Chief Evangelist, IDeaS, is not only widely respected within revenue management but a long time friend of Revenue by Design. It was a delight to catch up with him recently and get an insight into where he feels the revenue management community needs to be focusing in the age of the 'Connected Customer'
- Why is the connected customer relevant to the revenue management strategy in 2019?
We talk a lot about artificial intelligence. I like to talk about seamless intelligence. Seamless intelligence happens when data we collect is used to make travel and journeys more seamless and effortless. The connected customer leaves data, sort of like a breadcrumb trail, which allows for a more granular understanding of what drives customer behavior. This in turn allows for a much better understanding of demand and price sensitivity. The more data breadcrumbs we have, the more relevant and specific our strategies will be.
- How will the connected customer force us to rethink our strategies?
In revenue management, we need to look to influence decisions and drive conversation, and not just at the point of booking. We need to understand how we can influence behavior further up the channel – at the point of dreaming and shopping. We need to create better offers that are relevant, and package and price them in a way which drives conversion. In the past we have talked about new models of displaying prices – we call it Customer Choice Pricing – which breaks products (rooms and others) into attributes so guests can choose their individual journey if they choose to. These strategies will help us better align with the connected customers of today.
- How do you see revenue management evolving in 2019 and beyond?
More than ever, hoteliers have access to an incredible amount of data spread across a variety of individual systems. To help simplify and consolidate this data, emerging technology platforms and intelligent integrations will enable easier access to consolidated information. This will help pave the way for the incredibly personalized guest experiences we are starting to see today in the hospitality industry. More importantly, however, is the leveraging of advanced analytics. For instance, some revenue management platforms now allow you to expand your revenue management beyond the room into other areas, such as parking and conference facilities, and by leveraging advanced analytics, we can see the potential to provide better decision-making power to those who need it.
Klaus will be just one of the stellar line of up leading revenue management professionals and hoteliers who will be joining us at 'Revenue Management and the Connected Customer' on 12th February at the Hilton Bankside, London. Register now and be part of the conversations that matter to shape your revenue management strategy in 2019. It promises to be a day of inspirational debate and networking opportunities. More details here www.opportunity2019.co.uk