“In light of the current labour challenges the hospitality industry faces, outsourcing a variety of functions – amongst them Revenue Management – seems to be a feasible solution. As a hotel owner/manager, it’s easy to focus on the benefits of outsourcing, all without considering the impact it can have on your hotel and it is, therefore, imperative to compare the pros and cons of outsourcing.
On the plus side – You do not have the hiring commitments & costs associated with signing a revenue expert. By searching a global talent pool, it’s easier to find the right talent at the right price to resolve your need for specialised help. You get expertise for a fraction of the cost you would otherwise have to pay. There also tends to be an increased focus on strategy/core competencies & you get to have a fresh set of eyes to evaluate your current set-up and strategies.
Many express concerns about risks involving confidentiality and security when handing over direct control of a function or process to a third party. On the downside – there is the possibility of communication & quality issues. In addition, there can be a lack of control & possible inconsistencies in accordance with your preferences. You also need to take steps to ensure that it doesn’t have a negative effect on company culture.
Outsourcing is a great way to put a spin on your business, but for success, it really does require that there are clear and concise expectations for strategy, performance, quality & outcome between the parties involved.”