We asked the team at The Boundary Project why they were attracted to outsourcing their revenue management, what challenges the hotel faced and how their team were previously wresting with managing rates and whilst simultaneously having to manage the operation This is their story.
When clients first approach us to ask why they should hire us to drive their revenue management strategies, there are lots of reasons that get put on the table. Here are a few of the reasons that come up most frequently:
Revenue Management covers a wide range of skills
The revenue management skills set covers revenue analysis, pricing strategies, distribution and channel management and the technical know how to manage and maintain multiple systems. That’s a big ask to recruit for, and one of the main reasons why brands distribute these skills across multiple departments. We have a team of specialists that offer skills across all these areas and our clients can tap into these as and when they need to.
The role is too big today and too small on other days!
Great revenue management relies on data accuracy and consistency on a daily basis. This is fine, as long as your revenue manager doesn’t take holidays, or go off sick. On the one hand daily tasks really don’t take up the whole day, on the other hand, there are elements of the role that require lots of time; strategic thinking to create great plans, or applying revenue management to the spa and restaurant. Balancing out this time and skills requirement across one person results in either feast or famine.
My hotel is too small!
We have managed clients ranging from 10 bedrooms through to many hundreds of rooms. The strategies may be different but the principles remain the same. And its not the case that small is easy. With a 10 bedroom hotel, every room represents a significant proportion of inventory so every decision counts.
Keeping the skills from walking out the door
Every good revenue manager needs a change after a while and its hard to keep incentivising your revenue manager to stay, and highly frustrating to see all your business knowledge walk out of the property (and into another), as you start on your next recruitment drive and the long journey of building up all the knowledge again.
It may be the flexible solution you need right now
The skills shortage in hospitality isn’t limited to restaurants and bars. It’s being felt across every department and revenue management is no exception. Not only is it difficult to find good revenue managers but in today’s climate it’s also difficult to justify additional headcount, when businesses are only just emerging from over a year of almost no trading. Outsourcing your revenue management can help fill gaps in the short or long term, and if that’s not available to you then our reporting automation and coaching calls can offer an ideal solution to ensure that you’re tapping into the optimal business opportunities.
Tapping into a revenue management outsource team full of highly skilled revenue managers gives access to all these skills, that you may not be able to get or afford from an in-house resource and a team that is totally committed to driving your business forward.