July 07, 2015

A strong hotel revenue strategy starts at the top


Not long ago, hotel distribution topics were discussed in tiny rooms at small-scale conferences attended by revenue managers and digital marketers. But now revenue strategy is a board-level initiative for hotel ownership groups, management, asset management, and brand companies.

It’s reassuring that distribution, revenue management, marketing, and the technology and strategies behind them are becoming a priority on the broader stage. A more holistic revenue strategy that brings together so many separate disciplines is the industry’s best response to the challenges brought on by OTAs, emerging channels, and the sharing economy.

These outsiders aren’t the enemy. They’re all out to make money and provide services valued by consumers. It’s incumbent on suppliers and their partners to create that same kind of value and to remain competitive in this digital arena.

New channels have made the distribution and data science side of the business far more demanding, and advances in mobile technology and social media make it even more complex. Optimizing demand and increasing not just revenue but profitability are issues that must start at the top. These can’t just be property-level concerns anymore.

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