Perspective of revenue managers for the new development in revenue management
Introduction
Revenue managers are undeniably under more strain than in the contemporary to deliver not only quality services, but also ensure that they record a maximum revenue growth. With the aid of a closely controlled investigation that would facilitate them envisage customer conduct, they would be in a position to optimize product accessibility and the prices to arrive at the aimed at revenue progress. However, they ought to take various aspects into considerations. For instance, they ought to present the right product with the right pack to the right customer, and more so, that ought to be done at the right time to stand a chance of increasing the required progression on revenues. Worth mentioning herein is that, such an undertaking would only be accomplished through the indulgent of customer’s awareness of the product/services, as well as guarantying that the 4P’s are associated well with the consumers. Luckily, there are new developments in revenue management and all have raised different perceptions from the revenue managers.
Total Revenue Management
Total revenue management denotes the optimization of revenues as well as profits from all proceeds streams available. A point in case is the hotel industry that would endeavor at ensuring that their profits from rooms, food, parking, spa, rental space, and other entertainment facilities engender to their maximum capabilities. It is the perspective of the revenue managers that the total revenue management would enable to accomplish several not one, but several issues that include but not limited to maximization of profits by market segmentation. That requires them to formulate ways that would enable them to track individual segments, mentioned exceeding as they making revenues.
Equally, it was their opinion that the Total revenue management would spread out the responsibility of the revenue managers. It becomes palpable that their involvement would be increase once they opt to optimize the revenue sources from all streams as revealed here. That would be contrary to the previous periods where the revenue managers spent more efforts on the room revenues neglecting the other revenue streams such as parking, food and beverages segments among several others. Worth mentioning also was the fact that the revenue managers were able to develop new metrics thanks to the newly developed total revenue management. As it would be deduced from Noone, Kimes, & Renaghan (2003), a majority of hotels are at the adopting the track F&B covering rooms but with minimum levels in contracts although they create metrics that track revenue and profits per occupied rooms (Noone, Kimes, & Renaghan, 2003). However, with the new total revenue management, it would be possible for them to focus on selecting business in a routine manner thanks to the new performance metrics. The availability of sophisticated menu engineering would be available to the revenue mangers thanks to the total revenue management. One of the advantages that would be deduced from the above mentioned feature of the total revenue management would be the price elasticity in the menus made available to the customers (Dietz, 2012).
Customer Centric Revenue Management
With an aim of realizing maximum profits in addition to fostering customer’s loyalties, managers from the hotel industry are embracing a supportive mechanism that would enable them develop a customer relationship management. Important was the fact that, such an undertaking would be fostering their management of revenues from their clients. Without a doubt, the hotel and hospitality industry’s revenue managers understand fully the value of customer relations explaining the reason why the development of customer centric revenue management was developed. Unlike other managers, revenue managers are shouldered with the responsibilities of interacting with the customers bearing in mind that such an undertaking would without a doubt be beneficial. It was their view that by formulating a link that would ensure that they are connected to their clients. They would be able to remain relevant to the present happenings in the market. In addition, the revenue manager would be in a position to understand the changes that would take place in the market, and as a result, make changes and adjustments to retain their customers. Such an understanding emanates from the understanding that the customers are an imperative source of the revenues they are aiming to maximize. Moreover, all the streams mentioned as beneficial to the revenue mangers would not be useful without not only retaining the customers, but also attracting them (Noone, Breffni, Sheryl, & Renaghan, 2003).
Similar to the exceeding point is the fact the revenue managers would be in a position of collecting views and opinions of their clients. It would be from such opinions that the revenue mangers would stand a chance of maximizing their profits as intended. Taking into consideration also the fact that the hotel and hospitality industry changes from time to time, it is imperative that the managers remain in close contact with the clients for that would be the only way that they would be assured of the continuity of their incomes (Noone, Kimes, & Renaghan, 2003). Additionally, it is the opinion of the revenue managers that the customer centric revenue management turns out to be more economical to them as compared to the olden ways of accessing their clients. By illustration, the revenue managers were in a position to use fewer resources in contacting and remain in contact with them through the social networking. It is without a doubt that it is cheap as well as allowing for a wide client’s coverage unlike the other techniques adopted initially. Evidently, that becomes friendly to the revenues something that enables them increase the profits as intended.
Changing role of Revenue Management
As expounded in the previous segments, their revenue managers’ roles are on record to have transformed. By illustration, their roles has transformed and turned out to be more of tactical strategic within the hospitality industry as revealed to that of revenue management. Equivalently, their responsibilities turned out to be of analytical in nature something that implies that they ought to have that skill not forgetting to mention the essential skills of communication. An increased interaction with their customers from all their revenues streams also turns out to be another role that has changed in the revenue managers. Such interactions enable them to stay relevant in the industry as well as remain up-to-date with the changing aspects of the hostel and hospitality industry (Dietz, 2012). The additional transformed role in the revenue managers as revealed is the pricing analysis. Indisputably, they had to take up the pricing process since it would be the only way that they would ensure fair prices are offered to their services and products. Failure to that, they would turn to making fewer profits something that might force them out of the market. Finally, their roles turned out to be more on total property performance rather than on specific revenue streams of the industry. That is a fact that was expounded in detailed exceeding, hence, worth mentioned under this segment.
References
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